Evaluating Tech Stocks

When assessing tech stocks, the P/E ratio is just the starting point. Here are additional factors to consider:

1. Earnings Growth: Look at the expected growth in earnings to determine if the stock is undervalued.
2. Profit Margins: Higher profit margins can indicate a company's ability to sustain earnings growth.
3. Macro Environment: Consider the broader economic context, including interest rates and capital expenditure (capex) trends.