Key Takeaways

• Evaluating new companies with innovative products but no track record can be challenging and risky
• Combining standard and alternative valuation metrics may help you get a better sense of a new company’s potential
• Alternative metrics include brand equity, high relative valuation, cash burn, and intellectual property

FAANG stocks and other big-name flyers were, not too long ago, start-ups with no clear path to sustained profitability. If you’re looking for the next potential disruptors, how might you go about assessing candidates? You might want to go beyond traditional fundamental analysis.
— Read on tickertape.tdameritrade.com/investing/faang-stocks-alternative-valuation-metrics-17576