Alphabet Is the Cheapest "Magnificent Seven" Stock on This Key Valuation Metric. Does That Make the Stock a Buy?

Investors are heavily discounting Alphabet's future. This may present an opportunity.At the end of the day, earnings will drive stock prices. A company is worth the cumulative profits it generates for shareholders, discounted back to today. As investors, we want to buy a piece of these earnings -- what you are doing when buying a stock -- as cheaply as possible. One way to measure the cheapness of a stock is to look at its forward price-to-earnings ratio (P/E), which takes the current market cap and divides ...