Compared to the S&P 500, this "Magnificent Seven" stock is far more affordable.  

 The price-to-earnings (P/E) ratio is the most common financial indicator since it compares company prices to trailing-12-month earnings.   

 It's simple, but wrong for tiny companies or when a windfall or impairment charge changes a stock's price.  

 Because it includes all S&P 500 businesses' earnings, the P/E ratio is a good indicator of stock market valuation.  

 If you exclude the COVID-19-induced rise, which caused many companies' earnings to drop, the S&P 500 ratio is 27—the highest in 15 years.  

 Value-oriented investors will flee the market's valuation.   

 But the market looks ahead.  

 A resilient economy propelled by reduced interest rates, inflation, and the long-term impact of artificial intelligence (AI) offers growth potential.  

 Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is a growth company worth buying now because it combines growth and value.  

 The "Magnificent Seven" are Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta Platforms, and Tesla, the seven largest tech companies.  

 Alphabet is the only one with a P/E below the S&P 500 and the lowest P/FCF.  

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