How to tell if a stock is overvalued

Is this stock overpriced – or is the market seeing something you don't? In this episode, DIY investor Aria Radnia explores one of investing's toughest questions: how do you know when a stock is overvalued? Learn why popular valuation metrics like P/E ratios don't always tell the full story, how to spot warning signs that a stock may be overpriced, and which factors matter most when deciding whether to buy, hold, or sell. Plus, Aria answers your investing questions in our live Q&A session. 00:00 How can you tell if a stock is overvalued? 06:08 Step 1: Assess the company's economic moat 10:06 Case Study: What gives Uber a competitive edge? 11:56 Step 2: Evaluate the company's fundamental metrics (Which ones matter most?) 14:18 Case Study: What do Uber's growth metrics and margins reveal? 17:04 Step 3: Assess if the stock’s valuation justified 19:09 What can EV/EBIT tell you that P/E can’t? 22:46 Case Study: ASML - Can growth justify a high valuation? 25:47 How to research stock valuations in WebBroker 29:13 Live Q&A, your valuation questions answered