Google at $400? Why not?
Why not, indeed; in fact, why not $927/share in 5 years time...
No doubt the price is dear right now in relation to earnings. Google shares fetch about 69 times estimated 2005 EPS and 47 times the estimates for the 2006 results. Yet the question we want answered is how much more should an investor be prepared to pay for this rich a company?
Analysts are all over the place on subject but I'm going to apply a more disciplined approach by re-phrasing the question as follows...Continue reading...
We accept paying a higher price for a Mercedes than a Chevy. We're willing to pay a lot more for a meal at a five-star restaurant. Should we so object to paying a high price for a top Internet play like Google /GOOG?
No doubt the price is dear right now in relation to earnings. Google shares fetch about 69 times estimated 2005 EPS and 47 times the estimates for the 2006 results. Yet the question we want answered is how much more should an investor be prepared to pay for this rich a company?
Analysts are all over the place on subject but I'm going to apply a more disciplined approach by re-phrasing the question as follows...Continue reading...
posted by David M Gordon | 5:01 AM
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