“How to Know if a Stock is Cheap or Expensive? Part 2 of 2”
Micron is a cyclical stock with uncertain valuation (range $556-$1,016); as a long-term investor, avoid it, but it can be traded short-term.
Now let's take a look at another very different type of stock. One that's very popular is micron ticker symbol MU. So if you look at micron the question would be how do you value the stock?
Again, which method do you use? Can we use the discounted free free cash flow method, which is my favorite? We cannot because this business doesn't have a history of consistently increasing free cash flow or consistently increasing cash from operations.