February 20, 2013
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.