NASDAQ:GOOG
$539.27
(2/9 12:02PM)
+1.1%
| Open | $539.54 |
Mkt Cap | $129.6 Billion |
| High | $541.25 |
52Wk High | $629.51 |
| Low | $535.07 |
52Wk Low | $289.45 |
| Volume | 1.2 Million |
Avg Vol 10D | 3.3 Million |
Ockham's Rating/Recommendation Summary
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GOOG Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at GOOG through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 7 years are 13.36x and 6.50x respectively.
Utilizing this range we can see that GOOG’s current Price to Sales per share ratio of 7.13x is significantly below its average levels historically. In fact, with a current price of $531.29, GOOG is a full 29% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for GOOG.
GOOG Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. GOOG is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 7 years of cash earnings levels for GOOG to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 47.48 and a 22.76 low over the same period.
Now that GOOG’s current price is $531.29 and its Price to Cash Earnings ratio is 26.04, we are very positive on its outlook from the cash earnings perspective. In fact, GOOG is now trading a full 26% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why GOOG has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.
GOOG Dividends
While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company. While we do like to see companies with healthy and growing dividends, it is not appropriate for all companies, especially those focused on growth. In this regard, we regard GOOG as neutral because we do not have historical data for this company's dividends. We will being incorporating this into our analysis as soon as that data is available.
Stocks in the News: Google, Incorporated Among the Twenty Most Discussed Stocks
Something important is going on with GOOG today, as it is getting a lot of attention on business television and influential blogs.
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Learn About RazorWire?Stocks to Watch: GOOG Heavily Covered on Zero Hedge
Something important is going on with GOOG today, as it is getting a lot of attention on business television and influential blogs.
The Ockham valuation currently has a Fairly Valued stance on GOOG because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Google, Incorporated has actually sunk a bit in comparison to the others. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards GOOG and think that it will generally perform in-line with the S&P 500.
“… From Cotizalia (obviously this is a GOOGLE translation for the sake of time). Development Minister and deputy secretary general of the PSOE, José Blanco, said yesterday ... …”
A Few Words from Squawk On The Street on Google, Incorporated and Sentiment
Sentiment and investors' opinions on GOOG were covered on Squawk On The Street recently and RazorWire has captured the news segment.
We noticed recently that in comparison to all other stocks we analyze in the news; GOOG has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. Google, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.
“… nice bounce here. A lot of traders saying we've been oversold in technology. Intel up nearly 2%. Apple up 1%. GOOGLE up 1%. …”
GOOG and Analysts' Opinion Discussed on Mad Money
Analysts' opinions can often carry a lot of weight, especially when they make major news and are covered on Mad Money.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GOOG has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on GOOG. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Google, Incorporated will perform just about the same as the index.
“… I did downgrade my price target for GOOGLE because I did not foresee the fight that it would have with the chinese government which to me has been a true negative. …”
What are the Experts Saying? Analysts and GOOG on Fast Money
When the television or blog talks about an analysts' opinion it could have a major impact on the stock.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GOOG has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Google, Incorporated will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on GOOG.
“… GOOGLE can be fine in china, 20%. People are expecting that to be their market and count on india. > > next call here, collin stewart, amazon. …”
Invested in GOOG? Turn on the TV, It's All Over the News and Fast Money
Be aware that something important has occurred for GOOG and investors interested in this stock should seek out information in any way possible.
Google, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; GOOG has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… First stock, we are going to tackle bank of america adding GOOGLE to the u. S. One. Company remains anation tractive macro economic recovery play. …”
Closing Bell: Topics Include Emerging Markets and GOOG
There is no doubt that the emerging markets are where the growth is right now. The latest news mention of GOOG on Closing Bell was in relation to emerging markets.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GOOG has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Google, Incorporated will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on GOOG.
“… in the long-term outlook. GOOGLE's main rival in china, quarterly results turned in today. They say having trading at an …”
Invested in GOOG? Turn on the TV, It's All Over the News and Closing Bell
If you own GOOG, then you need to get to a TV now. It has been mentioned in the news very frequently in the last hour.
Google, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; GOOG has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… GOOGLE is one example of advertising online that's actually worked quite well. > > correct me but the fact the broader picture of the ipo market, of the six ipos, four are ... …”
Google, Incorporated Crosses Extremely Active News Threshold for the Day, Now on Closing Bell
If you own GOOG, then you need to get to a TV now. It has been mentioned in the news very frequently in the last hour.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GOOG has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Google, Incorporated will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on GOOG.
“… GOOGLE holding up 1%. Some positive comments coming out of comscore. Research and motion is still the big one with 41%. …”
GOOG Is Among the Five Most Talked About Stocks in the News Today
Be aware that something important has occurred for GOOG and investors interested in this stock should seek out information in any way possible.
The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; GOOG has received less coverage from the financial media in business television and blogs. Google, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.
“… Sources telling "the wall street journal" that GOOGLE is preparing to launch a new feature for g mail making it easier and faster to share media and personal updates, so GOOGLE ... …”