One way to measure the expensiveness or cheapness of a stock is to compare price-to-earnings (P/E) ratios. However, a lower multiple in comparison to other stocks doesn't automatically mean a stock's a buying opportunity. Nor should you necessarily avoid those with a higher multiple. A higher P/E ratio does mean that investors have higher growth expectations. That's not a bad thing, and if a company can meet or exceed them, you can make money. Dutch Bros (NYSE: BROS) trades at a P/E ratio of 58. That's more than double the S&P 500 index's P/E ratio of 26. Should Dutch Bros' relatively high multiple turn off investors?
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