Determining what constitutes a cheap or expensive stock is anything but simple. Even the king of value investing, Warren Buffett, recently bought several stocks that don’t look cheap according to traditional metrics. That’s because any valuation needs to be understood in context with other factors.
SoFi Technologies (NASDAQ: SOFI) is a great example. Its stock is definitely expensive-looking based on several traditional valuation metrics as well as specific bank valuation metrics. But a chart below might change your viewpoint on SoFi.
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