From Dow Jones & Company:

The viral CNBC clip captures Morgan Stanley’s Sherry Paul discussing a “price-to-innovation” multiple, which was clarified by the firm to be related to the price-to-earnings-to-growth (PEG) ratio. This ratio, which assesses stock value, suggests that Nvidia and Meta Platforms may be undervalued, while tech giants like Amazon and Microsoft seem fairly valued. On the other hand, companies like Tesla, United Airlines, and Mid-America Apartment Communities appear expensive or have high PEG ratios, hinting at potential overvaluation. Other firms lack PEG ratios due to earnings forecasts or anticipated losses. These findings offer insights into stock valuations in the current market.



Read more: Explaining that viral price-to-innovation clip and what it really means.