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07-16-2010, 08:10 AM
On Google, Growth, Pricing Power, and Valuation Multiples « abovethecrowd.com (http://abnormalreturns.com/links/170093/visit) (abovethecrowd.com)
by stein 17 minutes ago
Last night, Google reported financial results for the second quarter of 2010. While revenue growth was up 24% year over year, revenue was fairly flat compared with Q1 of 2010. Moreover, earnings fell short of average street estimates sending Google down $20 per share (4%) in the aftermarket. Based on current estimates (which might change tomorrow), Google currently trades at 18 times the street average for 2010 earnings, and 15.5 times the same number for 2011. These represent price/revenue multiples of 7.5 and 6.5 for 2010 and 2011 respectively. For a long-term tech investor, these valuation multiples seem surprisingly l
see story at Abnormal Returns site...(RSS feed) (http://abnormalreturns.com/links/index?date=07/16/2010#170093)
by stein 17 minutes ago
Last night, Google reported financial results for the second quarter of 2010. While revenue growth was up 24% year over year, revenue was fairly flat compared with Q1 of 2010. Moreover, earnings fell short of average street estimates sending Google down $20 per share (4%) in the aftermarket. Based on current estimates (which might change tomorrow), Google currently trades at 18 times the street average for 2010 earnings, and 15.5 times the same number for 2011. These represent price/revenue multiples of 7.5 and 6.5 for 2010 and 2011 respectively. For a long-term tech investor, these valuation multiples seem surprisingly l
see story at Abnormal Returns site...(RSS feed) (http://abnormalreturns.com/links/index?date=07/16/2010#170093)