Comments on: Mobile Phone Initiatives Help Google Become 5th Most Valuable U.S. Company

By: Is Google Really a ‘Most Valuable’ Company? | Reaction Radio

Is Google Really a ‘Most Valuable’ Company? | Reaction Radio — Fri, 16 Oct 2009 18:11:06 +0000

[...] giant Google (GOOG) seeing its stock price surpass $700 per share, and as a result, become the fifth most valuable U.S. company in terms of equity market [...]

By: Anonymous

Anonymous — Thu, 08 Nov 2007 19:40:00 +0000

Google (P/E = 54) no longer the 5th largest now. Procter & Gamble (P/E = 22) has just passed it. Has the bubble burst?

By: Chad Brand

Chad Brand — Tue, 06 Nov 2007 18:37:00 +0000

I am certainly biased, no doubt about that. I don’t think my points in this post serve as reason to buy the stock, however, those decisions have been, and will remain to be, dictated by valuation relative to growth. I was trying to dispute a short sighted bearish argument that some are making (since Google is #5 on that list, it must be grossly overvalued).

As for “how much is enough” on the investment side for me personally, we are getting close to that point and when we get there, I’ll be sure to post my views.

By: Anonymous

Anonymous — Tue, 06 Nov 2007 18:21:00 +0000

Well all said is true, but you also shouldn't forget that you have vested interest in GOOG and therefore prone to discovering logic that justifies their high position.

Investment-wise, the question is how much is enough?

Because you can reasonably assume that if GOOG is to fall, it may as well fall rather quickly.

By: Chad Brand

Chad Brand — Tue, 06 Nov 2007 12:01:00 +0000

I think a key difference is that when CSCO peaked above $80 per share back then, its earnings per share were $0.36 (FY2000), which gave the stock a P/E of over 220.