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Investology 101Fund Manager: Ali BakhshandehfardSenior Analyst: Kevin YipAnalyst: Christina BaeAnalyst: Tina VoAnalyst: Jas Mann
Company ProfileFounded in 1998Headquartered in Mountain View,
California Sector: TechnologyIndustry: Internet Information ProvidersFull Time Employees: 20,164Maintains index of websites and other
online content for usersAutomated search technology helps users to
obtain instant access to relevant information from its online index
Company Profile Cont’dProducts include: Google News, Google
Finance, Google Maps, Google Image Search, Google Video, Google Book Search, Google Blog Search and Google Groups
Generates revenue primarily by delivering online advertising
Industry Analysis•Google is an internet information providers, providing internet throughout the world. •King of search engine, dominating Yahoo Inc & Microsoft Corp
Competitors
Company Price Market Cap
Google 393.50 124.32B
Yahoo 14.98 20.91B
Baidu 239.90 8.29B
Expedia 14.96 4.31B
Priceline 101.25 4.22B
Key statistics Valuation MeasureMarket Cap
(intraday) 124.32B
Enterprise Value (25-May-09)
106.54B
Trailing P/E (ttm, intraday)
28.77
Forward P/E (fye 31-Dec-10)
16.44
PEG Ratio (5 yr
expt) 1.01
Enterprise
Value/Revenue (ttm)
4.82
Enterprise
Value/EBITDA (ttm)
12.481
Share Information
Stock price 393.50
Volume 1,718,843
Avg volume (3m) 4,315,150
P/E (ttm): 28.77
EPS (ttm): 13.68
% Held by Insiders 0.47%
% Held by Institutions 79.60%
Financial Information
Profit Margin (ttm) 19.63%
EBITDA (ttm) 8.54B
Return on Assets (ttm)
14.25%
Qt Earnings Growth (yoy)
8.90%
Return on Equity (ttm)
16.03%
Total Cash (mrq) 17.78B
Revenue (ttm) 22.12B Total Assets (q1,09)
33,513.03
Revenue Per Share (ttm) 70.331 Total Liabilities
(“) 3,664.93
Qt Revenue Growth (yoy) 6.20% Total Equity (“) 29,848.10
Revenue
Stock Performance
Comparing the stock prices
Technical Analysis
Technical Analysis Cont.
Strengths72.11% US market share in online searches
Strong market share drives advertising business
Advertising technology is the best in industryClients are able to reach their markets effectively
Geographic diversity in revenue streamsHelps cushion business in economic downturn 51% of revenue from outside of US
WeaknessesLack of product diversity in revenue
94% of revenue from “pay-per-click” advertising; AdWords
Overreaching in other advertising mediumsFailed attempts in magazine and print
advertising could affect profitability
OpportunitiesGoogle Payments systems
Customer to customer payment system for Google based items
Rivals eBay’s PayPalWeb-based video advertising
Predicted to be important part of growth in web advertising
Brand based productsDell-Google PC
DoubleClick AcquisitionIncrease efficiency of Google’s online adsWill connect Google more to large corporate
clients
ThreatsNon-diversified product revenue streamVertical Search Engines
Specific market search engines provide more tailored precise searches Kayak.com
Copyright InfringementLets advertisers use trademarked terms as
keywords Pending lawsuits in Europe could affect future
word use in advertising
RecommendationBased on fundamental and technical
analysis , we come to the conclusion that Google is MODERATE BUY. Our analysis of the general economy shows great volatility. An established company like Google can counter some of this elevated risk.
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