GOOG $429 to $709 Revised Target Price Range by Relative Industry Valuation (GOOG, rated BUY)

October 4, 2008

GOOG is undervalued substantially by looking at it valuation relative to its Industry averages.

* GOOG has a Projected P/E of 16.39
* GOOG’s Industry (Internet Information Providers ) has an average Projected P/E of 18.04
* Implies a Projected Stock Price of $429.89

* GOOG has a projected earnings growth rate of 23.08%
* GOOG has a PEG of 0.71
* GOOG’s Industry (Internet Information Providers ) has an average Projected PEG of 1.29
* Implies a Projected Stock Price of $709.48

Source of the analysis and calculations:

http://www.freestockvalueranker.com/?method=peg_pe&symbol…

(site has been fixed…no more downtimes like before…new server, I hear…hopefully no more downtimes in the future)

Are there other reasons why GOOG should be so undervalued? Please keep in mind that yes, the overall economic situation is weak.
However, these are valuations RELATIVE to the Industry it is in. And, I know it is an arguable point, but GOOG is the de facto Industry leader.

Analysis date: Oct 3, 2008, 6 AM

GOOG $429 to $709 Revised Target Price Range by Relative Industry Valuation (GOOG, rated BUY)

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