Hype Stock or Actually the Future? | Here's a Framework to Find Out

“Expensive” stocks live on a razor-thin line between undeserved hype and justified optimism. Plenty of names see their valuations float away from the underlying business the moment a narrative catches fire. At the same time, there are execution machines compounding revenue, earnings, and free cash flow so relentlessly that even a rich multiple can be perfectly rational—yet they get tossed into the same bucket as overpriced junk simply because they rallied hard.