Google Inc ($GOOG) Possible Buy to $567 Confident Investor Rating: Good

Company name Google Inc
Stock ticker GOOG
Live stock price [stckqut]GOOG[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Fair
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $652.53
Target stock price (averages with growth) $652.59
Target stock price (averages with no growth) $331.44
Target stock price (manual assumptions) $648.02

The following company description is from Google Finance: http://www.google.com/finance?q=goog

Google Inc. (Google) is a global technology company. The Company’s business is focused around areas, such as search and display advertising, the Android operating system platform, consumer content through Google Play, enterprise, commerce and hardware products. The Company generates revenue primarily by delivering online advertising. The Company provides its products and services in more than 100 languages and in more than 50 countries, regions, and territories. On www.google.com or one of its other Google domains, users can find information in different languages and in many different formats. Google Play is a cloud-based, digital entertainment store with more than a million apps and games plus millions of songs and books and movies. Chromecast is a small and affordable device that users plug into their high-definition (HD) TV and it allows users to use their phone, tablet or laptop to cast online content to their TV screen.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Google Inc.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Google Inc calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $541.98
  • Growth: 0.14
  • Current EPS (TTM): $20.15
  • P/E: 26.9
  • Future EPS Calc: $38.79
  • Future Stock Price Calc: $1043.64
  • Target stock price: $648.01

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I hope that this makes you a Confident Investor.

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