Does anyone else think that Google is WAY overpriced?

Last post 05-18-2008 11:15 PM by J828. 9 replies.

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04-06-2008 8:03 PM

Pandrei1984
Joined on 02-05-2008
Posts 32

Does anyone else think that Google is WAY overpriced?

Is anyone other than me still amazed that Google trades above $100 per share? Their entire value lies in virtual entities... they don't own a lot of land, buildings, machinery, etc., yet they are worth billions because they dominate the web-searching world. I see value in search engines, but $470 per share is outrageously overpriced.

04-07-2008 12:25 AM In reply to

norfed
Joined on 03-05-2008
Posts 448

Re: Does anyone else think that Google is WAY overpriced?

i think that is a little high. but if you look at the numbers for goog it is a solid company that sell's advertising space not in real estate or machinery ,they are very good at what they do. i wont knock them as they have made almost a thousand dollars for me in my first month of this game it has helped me cover some really bad choices i made while learning this game.look at there numbers. very sound company. but i would not buy in right now!

VALUATION	GOOG	Industry Average	Sector Average	S&P 500
Price/Earnings (TTM)	35.45	43.50	23.61	23.66
Price/Cash Flow	34.21	33.98	16.37	15.61
Price/Sales (TTM)	13.04	3.07	1.09	0.57
Price/Book	6.65	7.32	5.20	6.47
FINANCIAL STRENGTH
Quick Ratio (MRQ)	8.12	--	--	--
Current Ratio (MRQ)	8.49	7.43	2.80	1.63
LT Debt to Equity (MRQ)	0.00	99.01	21.50	87.97
Total Debt to Capital (MRQ)	0.00	129.11	32.00	139.81
Return On Equity	21.32	1.00	1.00	1.00
Return On Assets	19.21	17.76	13.69	9.96
Return On Invested Capital	21.17	17.28	19.97	16.17
ASSETS
Asset Turnover	0.66	0.63	0.84	0.82
Assets per Employee	$1.5M	$1.3M	$794.8K	$2.9M
Inventory Turnover	--	193.54	222.41	11.33
PROFITABILITY
EBITDA	$5.7B	$1.9B	$2.8B	$5.0B
Operating Margin	30.6%	24.0%	-3.9%	18.5%
Profit Margin	25.3%	19.0%	-6.3%	12.5%
Gross Profit Margin	59.9%	0.0%	0.0%	0.0%

Filed under: still can't quite my day job

04-07-2008 4:10 PM In reply to

WindInSails
Joined on 03-25-2008
Posts 63

Re: Does anyone else think that Google is WAY overpriced?

Ask me again after MSFT & YHOO stop their games. But, in truth, right now: yes, however, not amazingly so. Hey, can you say Y2K tech bubble?

04-07-2008 4:45 PM In reply to

J828
Joined on 04-24-2007
Posts 1,073

Re: Does anyone else think that Google is WAY overpriced?

It's hard for me to even try and value Google. Yes, they do have a lot of intangible stuff. However, they have a lot, and I mean a lot, of products and services you wouldn't think about. Google is an amazing company, has lots of potential, and has a fairly sound business. I dont' know if the price is right, but I'd still invest in them even if the price was higher!

05-16-2008 10:26 AM In reply to

darvastrader
Joined on 03-18-2008
Posts 24

Re: Does anyone else think that Google is WAY overpriced?

A stock is never overpriced if it continues to rise in price.

Darvastrader

http://www.sharesmadeeasy.com

05-16-2008 10:38 AM In reply to

greenpawn
Joined on 09-13-2007
Posts 43

Re: Does anyone else think that Google is WAY overpriced?

No not at all this stock is resilent and continues to grow at an amazing rate HOW IS THAT TO EXPENSIVE

05-16-2008 11:03 AM In reply to

podstock
Joined on 05-11-2008
Posts 450

Re: Does anyone else think that Google is WAY overpriced?

I don't believe GOOG is over-priced; but, chart-wise, there is a huge 80+ gap that will fill (at least partially) once the market starts declinng

05-16-2008 3:37 PM In reply to

trader477
Joined on 08-25-2007
Posts 485

Re: Does anyone else think that Google is WAY overpriced?

IN ESSENCE YOUR RIGHT ,BUT GOOGLE HAS SO MANY OUTLETS TO MAKE MONEY ,THAT IT A SHAME,BECAUSE THEY ARE MUCH MORE THAN A SEARCH WINDOW,OR ADVERTIZING CO,OR TECH PROVIDER,OR ALL THE OTHER NUMEROUS THINGS THEY OWN OUT-RIGHT TOO I'M SURE, TOO BIG TO BRING DOWN BY MICROSOFT EVEN ,SO THAT MUST COUNT FOR SOMETHING ALSO,,BETTER DO SOME MORE RESEARCH ON GOOGLE BEFORE YOU DIS THEM !

05-18-2008 3:31 AM In reply to

Belovedlife
Joined on 05-11-2008
Posts 148

Re: Does anyone else think that Google is WAY overpriced?

If anything goog is undervalued considering how the market ended at 580 on friday

I expect goog to move up with less resistance for the rest of the month.

05-18-2008 11:15 PM In reply to

J828
Joined on 04-24-2007
Posts 1,073

Re: Does anyone else think that Google is WAY overpriced?

Google is definitely a hard company for me to evaluate as well. They have a lot in the pipeline that isn't talked about yet. I don't think the company has come even close to peaking. The engineers over there are amazing! You don't know what you're missing until they figure it out for you.

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