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Above is a link to an article from Motley Fool. Please share your thoughts on one or both of the questions below. What is the
Above is a link to an article from Motley Fool. Please share your thoughts on one or both of the questions below.
- What is the difference between a low stock price and a cheap stock?
- The article mentions ratios such as Price-to-Earnings (the P/E ratio) as well as similar ratios such as Price-to-Sales and Price-to-Cash flow. Discuss the rationale underlying the use of such ratios to determine if a stock is "cheap."
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