Despite all the attention it gets, Google’s stock hasn’t been such a great performer over the past few years. Since its high point in 2007, the shares have mostly tracked the market.
What’s surprising to me is that the stock seems fairly inexpensive compared to the rest of the market. Consider this: Google is now trading at 12.06 times next year’s earnings estimate. By contrast, the S&P 500 is going for 11.34 times its earnings.
Given its strong growth, I would think Google would be going for a lot more than the rest of the market.
Posted by Eddy on May 10th, 2012 at 10:24 am
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Named by CNN/Money as the best buy-and-hold blogger, Eddy Elfenbein is the editor of Crossing Wall Street. His free Buy List has beaten the S&P 500 for the last five years in a row. (more)
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