Presentation on theme: "Investology 101 Fund Manager: Ali Bakhshandehfard Senior Analyst: Kevin Yip Analyst: Christina Bae Analyst: Tina Vo Analyst: Jas Mann."— Presentation transcript:
Investology 101 Fund Manager: Ali Bakhshandehfard Senior Analyst: Kevin Yip Analyst: Christina Bae Analyst: Tina Vo Analyst: Jas Mann
Company Profile Founded in 1998 Headquartered in Mountain View, California Sector: Technology Industry: Internet Information Providers Full Time Employees: 20,164 Maintains index of websites and other online content for users Automated search technology helps users to obtain instant access to relevant information from its online index
Company Profile Contd Products include: Google News, Google Finance, Google Maps, Google Image Search, Google Video, Google Book Search, Google Blog Search and Google Groups Generates revenue primarily by delivering online advertising
Industry Analysis Google is an internet information providers, providing internet throughout the world. King of search engine, dominating Yahoo Inc & Microsoft Corp
Competitors CompanyPriceMarket Cap Google B Yahoo B Baidu B Expedia B Priceline B
Key statistics Valuation Measure Market Cap (intraday) B Enterprise Value ( 25-May-09) B Trailing P/E (ttm, intraday) Forward P/E (fye 31-Dec-10) PEG Ratio (5 yr expt) 1.01 Enterprise Value/Revenue (ttm) 4.82 Enterprise Value/EBITDA (ttm) Share Information Stock price Volume 1,718,843 Avg volume (3m) 4,315,150 P/E (ttm): EPS (ttm): % Held by Insiders 0.47% % Held by Institutions 79.60%
Financial Information Profit Margin (ttm) 19.63% EBITDA (ttm) 8.54B Return on Assets (ttm) 14.25% Qt Earnings Growth (yoy) 8.90% Return on Equity (ttm) 16.03% Total Cash (mrq) 17.78B Revenue (ttm) 22.12B Total Assets (q1,09) 33, Revenue Per Share (ttm) Total Liabilities () 3, Qt Revenue Growth (yoy) 6.20% Total Equity () 29,848.10
Comparing the stock prices
Technical Analysis Cont.
Strengths 72.11% US market share in online searches Strong market share drives advertising business Advertising technology is the best in industry Clients are able to reach their markets effectively Geographic diversity in revenue streams Helps cushion business in economic downturn 51% of revenue from outside of US
Weaknesses Lack of product diversity in revenue 94% of revenue from pay-per-click advertising; AdWords Overreaching in other advertising mediums Failed attempts in magazine and print advertising could affect profitability
Opportunities Google Payments systems Customer to customer payment system for Google based items Rivals eBays PayPal Web-based video advertising Predicted to be important part of growth in web advertising Brand based products Dell-Google PC DoubleClick Acquisition Increase efficiency of Googles online ads Will connect Google more to large corporate clients
Threats Non-diversified product revenue stream Vertical Search Engines Specific market search engines provide more tailored precise searches Kayak.com Copyright Infringement Lets advertisers use trademarked terms as keywords Pending lawsuits in Europe could affect future word use in advertising
Recommendation Based on fundamental and technical analysis, we come to the conclusion that Google is MODERATE BUY. Our analysis of the general economy shows great volatility. An established company like Google can counter some of this elevated risk.