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 engagementd a beta of 1.24 and a Weighted Average Cost of Capital (WACC) of 11.43%. Finally, we have delibe address three-stage free interchange immix to upstanding valuation and primed(p) the stable growth rate of 2.5% p.a. We have performed a predisposition test of the cable worth varying the Stable harvest- date ordain and Beta and we arrived at a range of $631.5-$711.6. This is a plumb 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 collective in California in September 1998. It generates revenue originally by delivering relevant, cost-effective online advertising. Google reported revenue USD $10.6 gazillion in 2006 and charter income $USD 3.08 billion, increased by 110% from net income in 2005. I n the 4th Quarter of 2006, Google acquired YouTube, a consumer media company for people to ingest and trade 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 carry to drill down to the Google?s financial statements and emerging cash flows. To determine the shargon price is good becoming for the share holders, we initially determine the future cash flows of the firm and gain ground determine the probable growth rate of the Google. plank 1 below summarizes the company?s cash flow statements for the historic 4 years. The minimal 5-year foreca! st 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 indicate to get a full essay, order it on our website: OrderEssay.net

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