Volumes have been written about Google's impending IPO. Scott Kessler of Standard & Poor's has written what I consider to be the best freely available reports on Google's future prospects. He has written two pieces, one about what lies beyond search for Google, and another on putting a valuation on the company.
The article about what lies ahead for Google is really a great read, and I highly recommend it. The article has some good analysis and research attached to it. After reading the article I was hoping for a good article on valuing the company, but Scott didn't exactly pull through on this front. On the valuation side his analysis is VERY weak and he essentially falls back on a valuation method called "comparables"... essentially this valuation method says "find a similar company who is public and find appropriate market multiples and apply them to the company you are trying to value"... so all Scott does is pull Yahoo! multiples and apply a +/- 10% multiple on Google. I would have like to have seen some deeper analysis around EBITDA projects for the next few years given various growth scenarios. I hope any of you planning on investing in Google reads these articles.
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