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One quick fix


? Pegged to the New Web Dollar |

Main

| Nasdaq's Loss is Europe's Gain ?

July 19, 2006

One quick fix

Tim Mullaney

In the earlier post about Net valuations, Google's price-to-earnings ratio is 42, not the 32 times this year's projected profits I thought I had looked up. So there wasn't really any risk the stock would go below a 30 P/E if it sold off on Yahoo's earnings report. My bad.

Still, getting Google at 42 is not exactly the word's highest-flying risk. Nothing is certain in life, but companies growing 10 times as fast as the economy that trade, adjusted for growth, at a discount to the broader market are very good bets. So the analysis stands even as the numbers are corrected.

02:04 PM

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