Jump to content

GOOGL - Google


Liberty

Recommended Posts

  • Replies 2.1k
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Posted Images

Guest rimm_never_sleeps

google is turning the tables on apple. i doubt this suit would have been brought had apple not gone after Samsung with both barrels loaded.

Link to comment
Share on other sites

  • 3 weeks later...

What are you guys estimating the intrinsic value of Google to be? Roughly, they've got 44B in cash and expected 13B in FCF this year. Sticking a 16x multiple given high growth rates, I think it comes somewhere in the ballpark of 44+13(16) = 250B MCap or about $770/share. However, a 16x multiple could be too conservative/liberal.

 

 

I got in at 575 :D

Link to comment
Share on other sites

It's true that standard B/S metrics are not as relevant as future projections of cash flow....that being said, keep in mind that Google's cash flow is pretty stable, as their product is "sticky", it's hard to switch out of and the more people use search, the better it gets due to superior data collection, so I think cash flows will be stable and not necessarily dependent on them bringing out an awesome product year after year like Apple.  What's your estimate of Google's IV?

Link to comment
Share on other sites

They are likely being targeted being they are a big company that makes a lot of money.

 

- Patent trolls will go after people with money (e.g. both mid-sized and large companies).

- The antitrust lawsuits stem from bureaucracies whose sole purpose is to sue large companies and/or engage in other activities that supports all their salaries.  Of course the US government lawsuit against Microsoft was embarrassing now that IE doesn't have dominant market share.

 

Personally I think that it's a shame that Google gets targeted by all these people.  Google is a wonderful model for making profits in a socially responsible manner.  If you want to make money ethically, you would probably want to be in the software business.  The software business rewards you for creating value and it's extremely rare to be rewarded well for business practices that do not create value.  Beneficiaries of spyware such as Comscore (SCOR) have a lower market cap than other tech companies (e.g. GOOG). 

 

But it is the price you pay for success.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



×
×
  • Create New...