Intrinsic Value of Google Inc (GOOG)

STOCK VALUATION MODEL INPUTS

Initial revenue growth rate, %
Terminal revenue growth, %
Revenue decline factor
 
Initial discount rate, %
Discount rate multiplier
definition of terms  
 
Step 1

Manual adjustment of revenue growth rates (RGR) and discount rates (DR) for the next 18 years:
Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
RGR, %
DR, %
 
Revenue (in 2012), US$ mln
Operating margin (excl. deprec.), %
Fixed operating expenses, US$ mln
Interest rate on debt, %
Corporate tax rate, %
Stock options cost / Revenue, %
Inflation, %
 
Revenue / Production assets
Revenue / Working capital
Life of production assets, years
Net debt, US$ mln
Equity, US$ mln
Target Net debt / Equity ratio
Goodwill, US$ mln
 
Market price of stock, US$ (May 14)
Number of shares outstanding, mln
Market capitalization, US$ bln 291.5
   
   
Step 2

Stock valuation results will appear here after you hit the Calculate button above.

Please check/change the model input data first. The most important discretionary inputs are highlighted.

Business Summary

Google Inc., a technology company, builds products and provides services to organize the information and make it universally accessible and useful. It provides Search, a service that delivers relevant search results in response to user queries; Product Listing Ads that offer product information; Search plus Your World; Google Now, a predictive search feature; and Google Knowledge Graph, which enhances Search service. The company also offers AdWords, an auction-based advertising program; AdSense, a program which enables Websites that are part of the Google Network to deliver ads; Google Display, a display advertising network; DoubleClick Ad Exchange, a marketplace for the trading display ad space; and YouTube that provides video, interactive, and other ad formats. In addition, it provides Google Mobile that extends its products and services to mobile device users; Google Local, which provides local information; Android, an open source mobile software platform; Google Chrome OS, an open source operating system; Google Chrome, a Web browser; Google+ for sharing various things online with different people; Google Play, a cloud-based digital entertainment destination; Google Drive, a place for users to create, share, collaborate, and keep their stuff; and Google Wallet, a virtual wallet for in-store contactless payments. Further, the company offers Google TV, a platform for consumers to use television and the Internet on a single screen; Google Apps, a cloud computing suite of message and collaboration tools; Search Appliance, a search technology for use within enterprises; Google Site Search, a custom search engine; Google Commerce Search for online retail enterprises; Google Maps Application Programming Interface; and Google Earth Enterprise, a software solution for imagery and data visualization. Additionally, it offers mobile wireless devices, and related products and services. Google Inc. was founded in 1998 and is headquartered in Mountain View, California.

 

FINANCIAL RATIOS  of  Google Inc (GOOG)

Valuation Ratios
 
Financial Strength
 
Profitability Ratios
P/E Ratio
27.3
  Quick Ratio
19
  Gross Margin
59.1%
Price to Sales
5.8
  Current Ratio
0.1
  Gross Margin - 3 Yr. Avg.
62.9%
Price to Book
4.1
  LT Debt to Equity
4.2%
  EBITDA Margin
32.7%
Price to Tangible Book
  Total Debt to Equity
7.7%
  EBITDA Margin - 3 Yr. Avg.
37.3%
Price to Cash Flow
17.6
  Interest Coverage
182
  Operating Margin
25.4%
Price to Free Cash Flow
21.9
 
Management Effectiveness
  Oper. Margin - 3 Yr. Avg.
30.5%
Growth Rates
  Return On Assets
13%
  Pre-Tax Margin
26.7%
Sales Growth Rate
32.4%
  Ret/ On Assets - 3 Yr. Avg.
15.1%
  Pre-Tax Margin - 3 Yr. Avg.
32%
Sales - 3 Yr. Growth Rate
%
  Return On Total Capital
15.4%
  Net Profit Margin
21.4%
EPS Growth Rate
%
  Ret/ On T. Cap. - 3 Yr. Avg.
17.5%
  Net Profit Margin - 3 Yr. Avg.
25.4%
EPS - 3 Yr. Growth Rate
%
  Return On Equity
16.5%
  Effective Tax Rate
19.4%
Capital Spending Gr. Rate
-4.8%
  Return On Equity - 3 Yr. Avg.
18.6%
  Eff/ Tax Rate - 3 Yr. Avg.
20.5%
Cap. Spend. - 3 Yr. Gr. Rate
32.2%
  Asset Turnover
0.6
  Payout Ratio
0%
Financial statements of GOOG