Vqel The Valuation Conundrum: P/E Ratio vs. P/S Ratio
Finding smart, high-quality growth stocks to buy that can grow rapidly for years can be some of the best inves
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tments you make.聽These stocks can grow so rapidly that they can contribute a massive amount of growth to your portfolio.For example, had you decided to buy a tech stock like Shopify just five years ago, the return you could have earned would have been power
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ing your portfolio to some incredible growth over that time span.Over that period, Shopify is up by more than 3,000
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%, or a compounded annual growth rate north of 100%. That means if you had invested just $2,000 in Shopify at the time and held until today, your investment would be worth more than $68,000 today.That some extremely rapid growth and goes to show just how fast it can help your portfolio to expand.Every time you buy a stock, you have this opportunity, yet only a handful of these companies will ever achieve massive growth. So, it s crucial to do as much due diligence as possible before you decide to invest y Ajbz This Dividend Stock Is Perfect for TFSA Holders
Understandably, Aurora Cannabis stock is popular among growth investors, as it was a multibagger for early investors. However, the stock trades at a sky hi
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gh multiple today a price-to-sales ratio P/S of about 51! So, it s more of a speculative investment than anything.I d much prefer to
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go with a surer winner, Brookfield Asset Management TSX:BAM.A NYSE:BAM , which is expected to generate double-digit growth and is also much better valued at a P/S of about 0.78.A business that will only become more valuableBAM is bound to become more valuable over time. The global alternative asset manager collects management and performance fees from its ever-growing portfolio of assets under management AUM .In the latest quarter, the company had more than US$365 billion of AUM including US$150 in fee bearing capital, which drives fee-related earnings. It generates more than US$3 billion of annualized fees and target carried interest i.e., performanc
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e income . Its fee-bearing capital has