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Over $1,000, high growth stock remains cheap: Cramer

(Click for video linked to a searchable transcript of this Mad Money segment)

Selling for over $1000/share it may seem expensive, but Jim Cramer says this stock is actually cheap.

The stock is Priceline.com.

Although holding 100 shares of Priceline will set you back a pretty penny, that doesn't mean the stock is expensive.

Quite the opposite

"On a price-to-earnings multiple, Priceline is actually the cheapest of the high growth stocks that I follow," Cramer said. "Priceline trades at a forward P/E of about 19 on 19% earnings per share growth. That's barely more than the average stock."

Yet compared to the average stock, Cramer says the growth potential facing Priceline is significantly greater.

Michael Czosnek | E+ | Getty Images

First, Cramer thinks Priceline is well positioned to capture new business as corporate travelers both in the US and abroad turn to the web in a quest to cut travel costs.

Although rival sites offer similar services, Cramer is particularly bullish on Priceline because a substantial portion of its business comes from overseas, where the migration to online travel is in early stages.

"85% of this company's bookings are from overseas particularly Europe. That gives Priceline a lot more room to grow," Cramer said.

Also, Cramer thinks a strategic acquisition should boost the bottom line.

"Priceline's incredibly strong acquisition of Kayak in 2012 for $1.8 billion is proving to be a game changer because the referrals generate a huge amount of business."

In addition, Cramer likes Priceline over rivals because 90% of Priceline revenues come from hotels, which he says is much more lucrative than airlines.

All told Cramer thinks that even though Priceline is trading over $1000/share, the stock is a bargain, considering the growth opportunities.

"If it helps, mentally divide by ten and you've got a $100 stock that sells for just slightly more than the average stock in the market but well above average growth," Cramer said.

Cramer knows the out of pocket expense is considerable for many individual investors, but to view the stock as expensive would be a mistake. "If Priceline were to split ten for one I bet the vast majority of you would buy without a second thought. After all, it's been one of the great winners of all time, rallying more than 1800% since its inception."

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Read more from Mad Money with Jim Cramer
Cramer tackles earnings seasons
How to increase child's net worth
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*All week long on "Mad Money," Jim Cramer will be looking at favorite stocks based on dollar amounts. As noted above, "Over $500 my pick is Priceline. On Tuesday I'll reveal a favorite stock between $100 and $500. Wednesday I will anoint a winner in the $50 to $100 space, Thursday you'll get my $10 to $50 call and finally, Friday, I will get down and dirty with my favorite stock under $10," he said.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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