Hi, I'm new to investment from EU.
I recently learned about stock valuation measures such as P/B, P/E, PEG, Price/Sales, and more. However, I started to feel like these traditional stock valuation metrics do not really provide useful insights in fast-growing companies nowadays and which one to invest. For instance, the current stock price valuations on tech companies such as Tesla, Palantir, Nebius, AST Space, and IonQ are not justified by the metrics IMO. It seems like to me that the majority of the tech companies have very high premium price solely judged by the valuation metrics. Perhaps, it's just all about the AI, EV, and future technology hype, but their stock prices have been growing fast long enough even though people pointed out they are overvalued years ago. I don't think that professional investors are dumber than some random dudes using yahoo finance or seeking alpha and ignore all those numbers...
As I see, qualitative properties (e.g, market trend, product outlook) have much stronger influence on the stock price. I'm not sure if I should be less concerned about the metrics and be more focused on what company does and the current market trend.