Is Google Worth That Much More Than Microsoft?
by Benedict Tubuo (Beevest)
If the P/E ratio is a reliable measurement of results and expectations, Google (GOOG) is yards ahead of Microsoft (MSFT). What the P/E tells us about these two is that investors are willing to pay about $25 for every dollar in current earnings for Google at a trailing P/E of 24.63X as opposed to $17 for Microsoft at 16.86X. This is about an $8 gap which if multiplied by Google's current earnings comes out to a substantial premium that investors are paying for Google's shares. This assumption would be unquestionable if not for the fact that the trailing P/E is an accounting metric that does not factor in some intangibles that most often affect the dynamics of demand and supply that ultimately determine the price investors pay for a stock. read more »
Get Seeking Alpha notifications with our iPhone App | Android App | iPad App
More on GOOG
Playing The Mobile Ad Market With Google, Facebook And Expedia by Renee Ann Butler
Is Google Or Amazon The New 21st Century Conglomerate? by Intelligent Speculator
Google Removes Beta From GCE And Declares War On Amazon by Andy Batts
Other articles that mention GOOG
How Apple's Pain Is Intel's Gain by Sneha Shah
Short Sellers Are Running Away From These 5 Names by Bill Maurer
Will Hewlett-Packard Make A Turnaround? by IAEResearch
Why are you receiving this? You subscribed to real-time article alerts at Seeking Alpha.
If this email was forwarded to you and you wish to subscribe to this email, click here.
Manage your emails:
Get alerts on additional tickers and manage all your email alert choices here
I'm getting too many emails: manage your email alert choices
I'm no longer following GOOG: unsubscribe from all GOOG email alerts
This type of alert isn't helpful to me: unsubscribe from article alerts on GOOG
To ensure you receive these emails in the future, please add account@seekingalpha.com to your address book, contacts or list of safe senders.
Sent by Seeking Alpha, 345 7th Ave. Suite 1400 New York, NY 10001
No comments:
Post a Comment