3J·

Mag-7 & Co.: Cheap vs. expensive - where is it worth buying?

$AAPL (-3,26 %)
$MSFT (+4,14 %)
$NVDA (+2,01 %)
$AMZN (+0,69 %)
$GOOGL (+2,1 %)
$META (+3,95 %)
$TSLA (+2,01 %)
$AVGO (+3,86 %)
$NFLX (+2,78 %)
$AMD (-0,03 %)

Absolute valuation levels

Above all Microsoft, Nvidia, Google, AMD and Amazon are quoted below their long-term median multiples.

Valuation multiples compared to expected sales growth

If the expected sales growth by analysts over the next 3 years the following picture emerges...

Per 1% growth, the following appear to be the most important Nvidia, AMD, Google, Meta and Amazon appear the most favorable.

Apple performs less well here due to its slow growth, but the company is not generally unattractive as an investment, e.g. due to the high buybacks.

Tesla appears expensive at first glance - however, the forward P/S is currently not excessively high due to the distorted earnings.

Netflix had a good run and appears somewhat expensive compared to growth, at least on the basis of multiples. The situation is similar for Broadcom.

Microsoft swims in the midfield.

What do you think of the valuation levels of Mag-7 & Co.

13 Commentaires

Chris@Multibagger

The problem I see is that the multiples are still based on old figures. If there is a recession in the USA, as it looks like there will be, profits will fall and multiples will rise.

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Sebi@Seebi

I bought the first 7 for just under 100 k. You can't help anyone who doesn't go for it. Of course, there are also some who prefer to sink their money into novo, but they're beyond help anyway, reminds me of Jehovah's Witnesses😀

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The W.@thewolfofallstreetz

@Seebi Good move

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GHF@GHF

Before buying shares, I always make tables to evaluate the candidates and usually choose the one that is the most promising according to the table. Unfortunately, the stock market doesn't always stick to this... 😢
But it's an absolutely useful tool that you've created to get a feel for the valuation of the shares.

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Simon@SimonSays97

Far too expensive now and in the near future. In addition, sales and profits will collapse massively in the near future. I see at least an 80-90% correction from the last top for META, Apple and Nvidia.

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Sebi@Seebi

@SimonSays97 Where did you get that idea from 😀😀😀 That really hurts what you're saying

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Simon@SimonSays97

@Seebi I didn't say anything. Go back to sleep.

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Sebi@Seebi

@SimonSays97 is better this way, better say nothing😀 sometimes less is more

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Chris@Multibagger

@SimonSays97 80-90% is too much I think. But 50% is realistic from the top. And we already had 40 with Meta, Nividia and with $TSLA 70% is also realistic.

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Simon@SimonSays97

@Seebi https://de.wikipedia.org/wiki/Dunning-Kruger-Effekt

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Vinc3🚀@BlockBard

On what grounds?

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Name@user24790529394

It's worth it - think long-term.

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The W.@thewolfofallstreetz

@user24790529394 100%

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