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HomeTrading NewsCathie Wood’s Portfolio Hit as Roku, Tesla, Roblox Shares Drop

Cathie Wood’s Portfolio Hit as Roku, Tesla, Roblox Shares Drop

Motley Fool

Does This Ratio Prove That Etsy Is Now a Value Stock?

One of my favorite quick and easy ways to get a feel for whether a growth stock may be considered a “value” or not is to compare its price-to-free-cash-flow (P/FCF) ratio with its annual sales growth rate. Anytime a company’s sales growth comes in higher than its P/FCF multiple, that catches my attention, because it highlights a strong expansion rate at a reasonable price. One such company is e-commerce specialist Etsy (NASDAQ: ETSY), with its P/FCF of roughly 31 and its annual revenue growth of 62%.

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