Investors are usually quick to glance at nose-bleed valuation metrics and proudly declare that stock: "Overvalued!" However, the picture may not be so black and white. In this segment of The Motley Fool's financials-focused show, Where the Money Is, financial-sector analysts Matt Koppenheffer and David Hanson tell viewers why simple valuation metrics, like the P/E ratio, don't tell investors the whole story.
David Hanson owns shares of American International Group. Matt Koppenheffer owns shares of American International Group. The Motley Fool recommends American International Group. The Motley Fool owns shares of American International Group and has the following options: long January 2016 $30 calls on American International Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.