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When it comes to investing in growth stocks, there are two types of investor. There are those relaxed about paying high prices for the promise of rapid growth. And there are those who hate the idea of overpaying and take valuation seriously.
Over the past three years, Fever-Tree Drinks has been an excellent example of what it means to pay a high price for growth. The high-end mixer and soft drinks business floated at the end of 2014. But its shares have never looked cheap against standard valuation ratios. With a current PE ratio of 73, it’s got…
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