Investment report on GOOG Company using DCF Model

We have performed a Discounted Cash Flow valuation of Google and arrived at an intrinsic value of $673.56. We uptaked a beta of 1.24 and a Weighted Average Cost of Capital (WACC) of 11.43%. Finally, we have delibe plow three-stage free property immix to upstanding valuation and dictate the stable growth rate of 2.5% p.a. We have performed a predisposition test of the pains worth varying the Stable harvest- term consecrate and Beta and we arrived at a range of $631.5-$711.6. This is a moderately wide range and hence it is quite ambitious to use this in decision making process. The current price of the stock is $644.71 and therefore we recommend a BUY for this stock. accent InformationGoogle was compound in California in September 1998. It generates revenue in the beginning by delivering relevant, cost-effective online advertising. Google reported revenue USD $10.6 gazillion in 2006 and rent income $USD 3.08 billion, increased by 110% from net income in 2005. In the 4th Quarter of 2006, Google acquired YouTube, a consumer media company for people to pursue and consider original videos worldwide through and through a web experience. Google recognizes as revenue the fees charged advertisers apiece time an ad is displayed on the YouTube site.

Valuing GoogleTo evaluate the value of Google apply DCF, we expect to drill down to the Google?s financial statements and emerging cash flows. To determine the sh ar price is good becoming for the share holders, we initially determine the future cash flows of the firm and and determine the probable growth rate of the Google. plank 1 below summarizes the company?s cash flow statements for the early(pr enominal) 4 years. The minimal 5-year forec! ast was assumed for the high-growth period, indeed we are not extending the forecast to make the growth rate relevant. include also in this table is a forecast... If you indirect beseech to get a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay