With Sell-Off, Google (GOOG) Trading at a 24x Multiple
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With the sell-off in Google (Nasdaq: GOOG) to $555 per share following results tonight, the stock is now trading at a multiple of 24x 2009 non-GAPP EPS of $23.20.
If Google shows the same EPS growth rate of about 50% that is saw in 2009, it could be argued that Google's earnings could grow to $34.80 in 2010. Currently the street is at $26.58 in EPS for 2010. So based on this, Google is trading at a forward multiple of 16x a 50% growth rate and at a forward multiple of 21x the current Street view.
Some may contest this is fair, while others may suggest that for a company with the kind of growth of Google could show the multiple is is too cheap.
If Google shows the same EPS growth rate of about 50% that is saw in 2009, it could be argued that Google's earnings could grow to $34.80 in 2010. Currently the street is at $26.58 in EPS for 2010. So based on this, Google is trading at a forward multiple of 16x a 50% growth rate and at a forward multiple of 21x the current Street view.
Some may contest this is fair, while others may suggest that for a company with the kind of growth of Google could show the multiple is is too cheap.
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