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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
RGR, %
DR, %
 
Revenue (in 2014), US$ mln
Variable Cost Ratio, %
Fixed operating expenses, US$ mln
Interest rate on debt, %
Corporate tax rate, %
Stock options cost / Revenue, %
Inflation, %
 
Production assets / Revenue
Working capital / Revenue
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$ (Feb. 18)
Number of shares outstanding, mln
Market capitalization, US$ bln 367.0
   
   
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. The company offers Google Search, which provides information online; Knowledge Graph that allows to search for things, people, or places, as well as builds systems that recognize speech and understand natural language; Google Now, which provides information to users when they need it; and Product Listing Ads that offer product image, price, and merchant information. It also provides AdWords, an auction-based advertising program; AdSense, 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 offers video, interactive, and other ad formats. In addition, the company offers Android, an open source mobile software platform; hardware products, including Chromebook, Chrome, Chromecast, and Nexus devices; Google+ to share things online with people; Google Play, a cloud-based digital entertainment store for apps, music, books, and movies; 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, it provides Google Apps, which include Gmail, Calendar, and Google Sites that are built for people to work anywhere, anytime, on any device without loss of security or control; Google Maps Application Programming Interface; and Google Earth Enterprise, a software solution for imagery and data visualization. Additionally, the company offers Google App Engine, a platform as a service offering; Google Cloud Storage; Google BigQuery for real time analytics; Google Cloud SQL for structured query language; and Google Compute Engine, an infrastructure as a service platform. It also 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
25.4
  Quick Ratio
32
  Gross Margin
61.6%
Price to Sales
5.6
  Current Ratio
0.1
  Gross Margin - 3 Yr. Avg.
61.6%
Price to Book
3.5
  LT Debt to Equity
3.1%
  EBITDA Margin
33.8%
Price to Tangible Book
  Total Debt to Equity
5%
  EBITDA Margin - 3 Yr. Avg.
35.9%
Price to Cash Flow
16.4
  Interest Coverage
202
  Operating Margin
25%
Price to Free Cash Flow
32.2
 
Management Effectiveness
  Oper. Margin - 3 Yr. Avg.
27.6%
Growth Rates
  Return On Assets
12%
  Pre-Tax Margin
26.1%
Sales Growth Rate
18.9%
  Ret/ On Assets - 3 Yr. Avg.
12.6%
  Pre-Tax Margin - 3 Yr. Avg.
28.7%
Sales - 3 Yr. Growth Rate
%
  Return On Total Capital
14.3%
  Net Profit Margin
21.9%
EPS Growth Rate
%
  Ret/ On T. Cap. - 3 Yr. Avg.
15%
  Net Profit Margin - 3 Yr. Avg.
22.8%
EPS - 3 Yr. Growth Rate
%
  Return On Equity
15.1%
  Effective Tax Rate
19.3%
Capital Spending Gr. Rate
48.9%
  Return On Equity - 3 Yr. Avg.
15.9%
  Eff/ Tax Rate - 3 Yr. Avg.
18.5%
Cap. Spend. - 3 Yr. Gr. Rate
26.1%
  Asset Turnover
0.5
  Payout Ratio
0%
Financial statements of GOOG
 

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