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.