Nvidia stock has more than doubled since the beginning of the year. This would lead most investors to wonder if the stock has reached its pinnacle, with nowhere to go but down.
One way to determine the value of a stock is to compare its price-earnings ratio to competitors. This ratio compares the price of the stock to the company’s earnings and indicates how much an investor “pays” for a dollar of earnings by buying the stock. A lower P/E ratio means the stock is more...