SlideShare a Scribd company logo
Valuation & Investment Analysis of Google Inc. Jan 12, 2010 ridhoirawan@hotmail.com ridho@mmorpg.co.id
About Google Inc. maintains an index of websites and other online content, and makes this information freely available through its search engine.
Highlights Global Domination Rapid Innovations Future Business
Investment Risks Competition among giants New & disruptive technologies Subject to intellectual property rights claims Relies on advertising revenue
Business Model ±98% of revenue derived from online advertising.
Industry Overview More people go online People are spending more time online Targeted text-based and display ads
Competition Google consider its primary competitors to be Microsoft Corporation and Yahoo! Inc. Both are companies that seek to connect people with information on the web and provide them with relevant advertising.
Stock Price A broadened search strategy announcement B profit up 46% C will slowing economy hit google's ad business? Dmicrosoft proposes buyout of yahoo E shares roar Fdow dropped below 9800 G plans to have their own OS Hgoogle phone
Valuation
Valuation-Cont. Terminal Value – Going Concern = FCFE ( 1+growth) / Cost of Equity – growth = 4,447,202.54 x 1.10 / 0.18 - 0.10 = 58,280,559   PV of Terminal Value 58,280,559/(1+0.1)^4 =  $39,806,406.03
Total PV of FCFE =$58,202,050 (in thousands) =$58,202,049,887,022 Outstanding Shares		317,270,000,000 Shareholder Value		$183.45 Market Price (Des 7, 2009)	$585.01 Over-valued? Bubble? Valuation-Cont.
Comparison
Optimist Google’s strong brand and dominant position guarantees strong growth and profitability for many years. Online advertising will continue to increase, and Google is well positioned to capture those ad dollars.  Google’s valuation is attractive. Even if Google’s growth turns out to be less than expected, the length of time that growth will be above average will be longer than expected. This is a primary point that the market is missing. -Turley Muller (2008)- Financial Analyst at Regions Mortgage
Pessimist Google has a market cap, as of writing, of $115 billion. This is equivalent to ten General Motors or almost three McDonald's. Is this valuation supportable? The simple answer is no. It is, however, a very brave investor who shorts a darling of the stock market, and crazy valuations cannot only stay crazy for a long time but can (and do) get crazier still. -Clem Chambers (2007)- Financial Advisor at Forbes
Valuation Conclusions Will Google dominate the online ads? Will Google Phone well-penetrate? Will Android Marketplace generate significant revenue? How does Google compete against competitors? Recommendation : Hold Wait and see for those signals

More Related Content

Viewers also liked

Valuation presentation
Valuation presentationValuation presentation
Valuation presentation
Mikie Archibald
 
Brand Valuation Review of the 2014 League Tables
Brand Valuation   Review of the 2014 League TablesBrand Valuation   Review of the 2014 League Tables
Brand Valuation Review of the 2014 League Tables
Type 2 Consulting
 
Google Valuation Presentation
Google Valuation PresentationGoogle Valuation Presentation
Google Valuation Presentation
Sergey Ulitenok
 
The Coca-Cola Company - Financial Analysis and Projections
The Coca-Cola Company - Financial Analysis and ProjectionsThe Coca-Cola Company - Financial Analysis and Projections
The Coca-Cola Company - Financial Analysis and Projections
Raeann Bailey
 
Facebook - Fundamental Analysis, Ratio Analysis and Valuation results.
Facebook - Fundamental Analysis, Ratio Analysis and Valuation results.Facebook - Fundamental Analysis, Ratio Analysis and Valuation results.
Facebook - Fundamental Analysis, Ratio Analysis and Valuation results.
Kandukuri Sai Omkar
 
Company Valuation
Company ValuationCompany Valuation
Company Valuation
ankitgor
 
TSLA+TM
TSLA+TMTSLA+TM
TSLA+TM
Andrew Mason
 
2015 Brand Valuation Review
2015 Brand Valuation Review2015 Brand Valuation Review
2015 Brand Valuation Review
Type 2 Consulting
 
Facebook Valuation by Arcstone 2012 02 22
Facebook Valuation by Arcstone 2012 02 22Facebook Valuation by Arcstone 2012 02 22
Facebook Valuation by Arcstone 2012 02 22
Fintech Nexus
 
Analysis Of Annual Report Nestle
Analysis Of Annual Report NestleAnalysis Of Annual Report Nestle
Analysis Of Annual Report Nestle
Ashish Khera
 
Basic Company Valuation
Basic Company ValuationBasic Company Valuation
Basic Company Valuation
Faizanization
 
Coca-Cola Corporate Valuation
Coca-Cola Corporate ValuationCoca-Cola Corporate Valuation
Coca-Cola Corporate Valuation
Firat Sekerli, MBA
 
Coca-Cola Financial Analysis
Coca-Cola Financial AnalysisCoca-Cola Financial Analysis
Coca-Cola Financial Analysis
Austin Jacobs
 
Coca-Cola Financial Analysis
Coca-Cola Financial AnalysisCoca-Cola Financial Analysis
Coca-Cola Financial Analysis
Elie Obeid
 
Toyota company
Toyota companyToyota company
Toyota company
NailaJahan
 
Financial ratios analysis project at Nestle and Engro Foods
Financial ratios analysis project at Nestle and Engro FoodsFinancial ratios analysis project at Nestle and Engro Foods
Financial ratios analysis project at Nestle and Engro Foods
raboz
 
Ratio Analysis of Coca-Cola
Ratio Analysis of Coca-ColaRatio Analysis of Coca-Cola
Ratio Analysis of Coca-Cola
Wajid Ali
 
Marketing Management Project.
Marketing Management Project.Marketing Management Project.
Marketing Management Project.
roomzkazi
 

Viewers also liked (18)

Valuation presentation
Valuation presentationValuation presentation
Valuation presentation
 
Brand Valuation Review of the 2014 League Tables
Brand Valuation   Review of the 2014 League TablesBrand Valuation   Review of the 2014 League Tables
Brand Valuation Review of the 2014 League Tables
 
Google Valuation Presentation
Google Valuation PresentationGoogle Valuation Presentation
Google Valuation Presentation
 
The Coca-Cola Company - Financial Analysis and Projections
The Coca-Cola Company - Financial Analysis and ProjectionsThe Coca-Cola Company - Financial Analysis and Projections
The Coca-Cola Company - Financial Analysis and Projections
 
Facebook - Fundamental Analysis, Ratio Analysis and Valuation results.
Facebook - Fundamental Analysis, Ratio Analysis and Valuation results.Facebook - Fundamental Analysis, Ratio Analysis and Valuation results.
Facebook - Fundamental Analysis, Ratio Analysis and Valuation results.
 
Company Valuation
Company ValuationCompany Valuation
Company Valuation
 
TSLA+TM
TSLA+TMTSLA+TM
TSLA+TM
 
2015 Brand Valuation Review
2015 Brand Valuation Review2015 Brand Valuation Review
2015 Brand Valuation Review
 
Facebook Valuation by Arcstone 2012 02 22
Facebook Valuation by Arcstone 2012 02 22Facebook Valuation by Arcstone 2012 02 22
Facebook Valuation by Arcstone 2012 02 22
 
Analysis Of Annual Report Nestle
Analysis Of Annual Report NestleAnalysis Of Annual Report Nestle
Analysis Of Annual Report Nestle
 
Basic Company Valuation
Basic Company ValuationBasic Company Valuation
Basic Company Valuation
 
Coca-Cola Corporate Valuation
Coca-Cola Corporate ValuationCoca-Cola Corporate Valuation
Coca-Cola Corporate Valuation
 
Coca-Cola Financial Analysis
Coca-Cola Financial AnalysisCoca-Cola Financial Analysis
Coca-Cola Financial Analysis
 
Coca-Cola Financial Analysis
Coca-Cola Financial AnalysisCoca-Cola Financial Analysis
Coca-Cola Financial Analysis
 
Toyota company
Toyota companyToyota company
Toyota company
 
Financial ratios analysis project at Nestle and Engro Foods
Financial ratios analysis project at Nestle and Engro FoodsFinancial ratios analysis project at Nestle and Engro Foods
Financial ratios analysis project at Nestle and Engro Foods
 
Ratio Analysis of Coca-Cola
Ratio Analysis of Coca-ColaRatio Analysis of Coca-Cola
Ratio Analysis of Coca-Cola
 
Marketing Management Project.
Marketing Management Project.Marketing Management Project.
Marketing Management Project.
 

Similar to Google Valuation

Google Executive Summary
Google Executive SummaryGoogle Executive Summary
Google Executive Summary
Kelsey Gernert
 
Google Ppt
Google PptGoogle Ppt
Google Ppt
prabalaggarwal
 
Google Inc: Company Analysis
Google Inc: Company AnalysisGoogle Inc: Company Analysis
Google Inc: Company Analysis
Paul Joseph
 
Case Study 1 Google Inc.- Kris Hodgson E-Commerce
Case Study 1 Google Inc.- Kris Hodgson E-CommerceCase Study 1 Google Inc.- Kris Hodgson E-Commerce
Case Study 1 Google Inc.- Kris Hodgson E-Commerce
Lethbridge College Industrial and Technical Trades
 
(Insert Company Logo Here)Job DescriptionTitleReports To .docx
(Insert Company Logo Here)Job DescriptionTitleReports To .docx(Insert Company Logo Here)Job DescriptionTitleReports To .docx
(Insert Company Logo Here)Job DescriptionTitleReports To .docx
katherncarlyle
 
Google case study
Google case studyGoogle case study
Google case study
Kinshook Chaturvedi
 
Google Recommendations and Implementations Strategies
Google Recommendations and Implementations StrategiesGoogle Recommendations and Implementations Strategies
Google Recommendations and Implementations Strategies
gbrynza
 
Dissertation: Success, Challenges & How to Stay on Top (Grade A: 77%)
Dissertation: Success, Challenges & How to Stay on Top (Grade A: 77%)Dissertation: Success, Challenges & How to Stay on Top (Grade A: 77%)
Dissertation: Success, Challenges & How to Stay on Top (Grade A: 77%)
Tennessee Watt
 
Strategic Planning
Strategic PlanningStrategic Planning
Strategic Planning
Stacey Troup
 
Google ppt-1227880622128341-8
Google ppt-1227880622128341-8Google ppt-1227880622128341-8
Google ppt-1227880622128341-8
anubau
 
Google ppt-by Anubhav Singh
Google ppt-by Anubhav SinghGoogle ppt-by Anubhav Singh
Google ppt-by Anubhav Singh
anubau
 
Section_02_Group_16_Alphabet's Google.pptx
Section_02_Group_16_Alphabet's Google.pptxSection_02_Group_16_Alphabet's Google.pptx
Section_02_Group_16_Alphabet's Google.pptx
DrManhunter
 
Corporate Strategy - Case Study - Google
Corporate Strategy - Case Study - GoogleCorporate Strategy - Case Study - Google
Corporate Strategy - Case Study - Google
V. Castel
 
Google market research
Google market researchGoogle market research
Google market research
Iliass Dadda
 
1FINANCIAL ANALYSIS GOOGLE AND COMPETITOR MICROSOFT.docx
1FINANCIAL ANALYSIS GOOGLE AND COMPETITOR MICROSOFT.docx1FINANCIAL ANALYSIS GOOGLE AND COMPETITOR MICROSOFT.docx
1FINANCIAL ANALYSIS GOOGLE AND COMPETITOR MICROSOFT.docx
felicidaddinwoodie
 
Case Study: Google 2012
Case Study: Google 2012Case Study: Google 2012
Case Study: Google 2012
Teresa Rothaar
 
Webmarketing 2011 Forecast
Webmarketing 2011 ForecastWebmarketing 2011 Forecast
Webmarketing 2011 Forecast
Mohammed ALAMI ✅
 
The Search for Market Dominance
The Search for Market DominanceThe Search for Market Dominance
The Search for Market Dominance
SteveACI
 
Answer SheetProblem NumberSolution1WORK.docx
Answer SheetProblem NumberSolution1WORK.docxAnswer SheetProblem NumberSolution1WORK.docx
Answer SheetProblem NumberSolution1WORK.docx
justine1simpson78276
 
AGC AdTech Industry Update_01.2016
AGC AdTech Industry Update_01.2016AGC AdTech Industry Update_01.2016
AGC AdTech Industry Update_01.2016
Linda Gridley
 

Similar to Google Valuation (20)

Google Executive Summary
Google Executive SummaryGoogle Executive Summary
Google Executive Summary
 
Google Ppt
Google PptGoogle Ppt
Google Ppt
 
Google Inc: Company Analysis
Google Inc: Company AnalysisGoogle Inc: Company Analysis
Google Inc: Company Analysis
 
Case Study 1 Google Inc.- Kris Hodgson E-Commerce
Case Study 1 Google Inc.- Kris Hodgson E-CommerceCase Study 1 Google Inc.- Kris Hodgson E-Commerce
Case Study 1 Google Inc.- Kris Hodgson E-Commerce
 
(Insert Company Logo Here)Job DescriptionTitleReports To .docx
(Insert Company Logo Here)Job DescriptionTitleReports To .docx(Insert Company Logo Here)Job DescriptionTitleReports To .docx
(Insert Company Logo Here)Job DescriptionTitleReports To .docx
 
Google case study
Google case studyGoogle case study
Google case study
 
Google Recommendations and Implementations Strategies
Google Recommendations and Implementations StrategiesGoogle Recommendations and Implementations Strategies
Google Recommendations and Implementations Strategies
 
Dissertation: Success, Challenges & How to Stay on Top (Grade A: 77%)
Dissertation: Success, Challenges & How to Stay on Top (Grade A: 77%)Dissertation: Success, Challenges & How to Stay on Top (Grade A: 77%)
Dissertation: Success, Challenges & How to Stay on Top (Grade A: 77%)
 
Strategic Planning
Strategic PlanningStrategic Planning
Strategic Planning
 
Google ppt-1227880622128341-8
Google ppt-1227880622128341-8Google ppt-1227880622128341-8
Google ppt-1227880622128341-8
 
Google ppt-by Anubhav Singh
Google ppt-by Anubhav SinghGoogle ppt-by Anubhav Singh
Google ppt-by Anubhav Singh
 
Section_02_Group_16_Alphabet's Google.pptx
Section_02_Group_16_Alphabet's Google.pptxSection_02_Group_16_Alphabet's Google.pptx
Section_02_Group_16_Alphabet's Google.pptx
 
Corporate Strategy - Case Study - Google
Corporate Strategy - Case Study - GoogleCorporate Strategy - Case Study - Google
Corporate Strategy - Case Study - Google
 
Google market research
Google market researchGoogle market research
Google market research
 
1FINANCIAL ANALYSIS GOOGLE AND COMPETITOR MICROSOFT.docx
1FINANCIAL ANALYSIS GOOGLE AND COMPETITOR MICROSOFT.docx1FINANCIAL ANALYSIS GOOGLE AND COMPETITOR MICROSOFT.docx
1FINANCIAL ANALYSIS GOOGLE AND COMPETITOR MICROSOFT.docx
 
Case Study: Google 2012
Case Study: Google 2012Case Study: Google 2012
Case Study: Google 2012
 
Webmarketing 2011 Forecast
Webmarketing 2011 ForecastWebmarketing 2011 Forecast
Webmarketing 2011 Forecast
 
The Search for Market Dominance
The Search for Market DominanceThe Search for Market Dominance
The Search for Market Dominance
 
Answer SheetProblem NumberSolution1WORK.docx
Answer SheetProblem NumberSolution1WORK.docxAnswer SheetProblem NumberSolution1WORK.docx
Answer SheetProblem NumberSolution1WORK.docx
 
AGC AdTech Industry Update_01.2016
AGC AdTech Industry Update_01.2016AGC AdTech Industry Update_01.2016
AGC AdTech Industry Update_01.2016
 

Recently uploaded

Machine Learning in Business - A power point presentation.pptx
Machine Learning in Business - A power point presentation.pptxMachine Learning in Business - A power point presentation.pptx
Machine Learning in Business - A power point presentation.pptx
mimiroselowe
 
Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!
FinTech Belgium
 
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
sameer shah
 
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
5spllj1l
 
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
5spllj1l
 
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
5spllj1l
 
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
rlo9fxi
 
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
Suomen Pankki
 
Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]
Commonwealth
 
Bridging the gap: Online job postings, survey data and the assessment of job ...
Bridging the gap: Online job postings, survey data and the assessment of job ...Bridging the gap: Online job postings, survey data and the assessment of job ...
Bridging the gap: Online job postings, survey data and the assessment of job ...
Labour Market Information Council | Conseil de l’information sur le marché du travail
 
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
5spllj1l
 
The state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation EventThe state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation Event
ResolutionFoundation
 
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
AntoniaOwensDetwiler
 
RMIT University degree offer diploma Transcript
RMIT University degree offer diploma TranscriptRMIT University degree offer diploma Transcript
RMIT University degree offer diploma Transcript
cahyrnui
 
FCCS Basic Accounts Outline and Hierarchy.pptx
FCCS Basic Accounts Outline and Hierarchy.pptxFCCS Basic Accounts Outline and Hierarchy.pptx
FCCS Basic Accounts Outline and Hierarchy.pptx
nalamynandan
 
Using Online job postings and survey data to understand labour market trends
Using Online job postings and survey data to understand labour market trendsUsing Online job postings and survey data to understand labour market trends
Using Online job postings and survey data to understand labour market trends
Labour Market Information Council | Conseil de l’information sur le marché du travail
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
ynfqplhm
 
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
taqyea
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
bresciafarid233
 
International Sustainability Standards Board
International Sustainability Standards BoardInternational Sustainability Standards Board
International Sustainability Standards Board
Kumar Ramaiah
 

Recently uploaded (20)

Machine Learning in Business - A power point presentation.pptx
Machine Learning in Business - A power point presentation.pptxMachine Learning in Business - A power point presentation.pptx
Machine Learning in Business - A power point presentation.pptx
 
Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!
 
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...
 
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
 
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
 
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
在线办理(TAMU毕业证书)美国德州农工大学毕业证PDF成绩单一模一样
 
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
 
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
Governor Olli Rehn: Inflation down and recovery supported by interest rate cu...
 
Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]
 
Bridging the gap: Online job postings, survey data and the assessment of job ...
Bridging the gap: Online job postings, survey data and the assessment of job ...Bridging the gap: Online job postings, survey data and the assessment of job ...
Bridging the gap: Online job postings, survey data and the assessment of job ...
 
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
在线办理(GU毕业证书)美国贡萨加大学毕业证学历证书一模一样
 
The state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation EventThe state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation Event
 
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...
 
RMIT University degree offer diploma Transcript
RMIT University degree offer diploma TranscriptRMIT University degree offer diploma Transcript
RMIT University degree offer diploma Transcript
 
FCCS Basic Accounts Outline and Hierarchy.pptx
FCCS Basic Accounts Outline and Hierarchy.pptxFCCS Basic Accounts Outline and Hierarchy.pptx
FCCS Basic Accounts Outline and Hierarchy.pptx
 
Using Online job postings and survey data to understand labour market trends
Using Online job postings and survey data to understand labour market trendsUsing Online job postings and survey data to understand labour market trends
Using Online job postings and survey data to understand labour market trends
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
 
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
 
International Sustainability Standards Board
International Sustainability Standards BoardInternational Sustainability Standards Board
International Sustainability Standards Board
 

Google Valuation

  • 1. Valuation & Investment Analysis of Google Inc. Jan 12, 2010 ridhoirawan@hotmail.com ridho@mmorpg.co.id
  • 2. About Google Inc. maintains an index of websites and other online content, and makes this information freely available through its search engine.
  • 3. Highlights Global Domination Rapid Innovations Future Business
  • 4. Investment Risks Competition among giants New & disruptive technologies Subject to intellectual property rights claims Relies on advertising revenue
  • 5. Business Model ±98% of revenue derived from online advertising.
  • 6. Industry Overview More people go online People are spending more time online Targeted text-based and display ads
  • 7. Competition Google consider its primary competitors to be Microsoft Corporation and Yahoo! Inc. Both are companies that seek to connect people with information on the web and provide them with relevant advertising.
  • 8. Stock Price A broadened search strategy announcement B profit up 46% C will slowing economy hit google's ad business? Dmicrosoft proposes buyout of yahoo E shares roar Fdow dropped below 9800 G plans to have their own OS Hgoogle phone
  • 10. Valuation-Cont. Terminal Value – Going Concern = FCFE ( 1+growth) / Cost of Equity – growth = 4,447,202.54 x 1.10 / 0.18 - 0.10 = 58,280,559   PV of Terminal Value 58,280,559/(1+0.1)^4 = $39,806,406.03
  • 11. Total PV of FCFE =$58,202,050 (in thousands) =$58,202,049,887,022 Outstanding Shares 317,270,000,000 Shareholder Value $183.45 Market Price (Des 7, 2009) $585.01 Over-valued? Bubble? Valuation-Cont.
  • 13. Optimist Google’s strong brand and dominant position guarantees strong growth and profitability for many years. Online advertising will continue to increase, and Google is well positioned to capture those ad dollars. Google’s valuation is attractive. Even if Google’s growth turns out to be less than expected, the length of time that growth will be above average will be longer than expected. This is a primary point that the market is missing. -Turley Muller (2008)- Financial Analyst at Regions Mortgage
  • 14. Pessimist Google has a market cap, as of writing, of $115 billion. This is equivalent to ten General Motors or almost three McDonald's. Is this valuation supportable? The simple answer is no. It is, however, a very brave investor who shorts a darling of the stock market, and crazy valuations cannot only stay crazy for a long time but can (and do) get crazier still. -Clem Chambers (2007)- Financial Advisor at Forbes
  • 15. Valuation Conclusions Will Google dominate the online ads? Will Google Phone well-penetrate? Will Android Marketplace generate significant revenue? How does Google compete against competitors? Recommendation : Hold Wait and see for those signals