Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Is Sirius XM a Classic Value Trap?

While the P/E ratio is Wall Street's most common measurement for knowing whether a stock is cheap or expensive at the moment, it isn't always the best one. In this video, Motley Fool consumer-goods analyst Blake Bos looks at Sirius XM (NASDAQ: SIRI  ) and tells investors why its normalized P/E ratio is much higher than it looks. And at that high multiple, Sirius is priced as a growth company, but with its moat eroding as Internet radio becomes more competitive in automobile ecosystems, it may not be the growth story it once was.

Even though Sirius XM is one of the market's biggest winners since bottoming out three years ago, there is still some healthy upside to be had if things go right for it -- and plenty of room for it to fall if things don't. Read all about Sirius in our brand-new premium report. To get started, just click here now.

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 20, 2013, at 7:24 PM, lanciab wrote:

    Don't over analyze a stock like counting calories for a health conscious people.

    If the food tastes good at a restaurant, it will sell.

    If it is the only restaurant that sells burgers and fries, it will sell even more.

    It is not all about numbers. When it comes to premium, numbers defy logic. Premium. That is the key operating factor for Sirius/XM.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2267418, ~/Articles/ArticleHandler.aspx, 9/30/2016 11:49:12 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:00 PM
SIRI $4.17 Up +0.03 +0.60%
Sirius XM Radio CAPS Rating: **