Is Google Overvalued at $377? Feb 25, 2006

**dahhuilaudavid** Sat Feb 25, 2006 8:00 am

Is Google Overvalued at $377? Feb 25, 2006
By three methods of simple comparisons / analysis, Google seems to be overvalued. Therefore, it is not surprising that Google’s value plunged from $475 (Jan 11, 2006) to $377 (Feb 24, 2006) in a matter of 7 weeks, wiping Google value by $29B! Yep, that’s right, $29B loss in 7 weeks!!

To read my comment / analysis of Google, please visit:

http://dahhuilaudavid.blogspot.com/2006/02/is-google-overvalued-at-377-feb-25.html

All the best,
Dah Hui Lau (David)
dahhuilaudavid@gmail.com

**springsnailt** Sat Feb 25, 2006 11:56 am

All hot issues are overvalued, period.

But it doesn't mean you can just short the stock. So the job is to find undervalued... IACI in your analysis. :lol:

**teenvestor2** Sat Feb 25, 2006 6:58 pm

Quote: All hot issues are overvalued, period.

I don't know about that.

Generalizing like this won't make any money for you.

**springsnailt** Sat Feb 25, 2006 8:59 pm

It does save me some time studying more worthwhile targets. 8)

teenvestor2 wrote: Quote: All hot issues are overvalued, period.

I don't know about that.

Generalizing like this won't make any money for you.

**blast_investor** Wed Mar 01, 2006 12:43 am

I would not be surprised to see slightly different approach in value investing world with different value-hunting screening methods.

springsnailt wrote: It does save me some time studying more worthwhile targets. 8)

**grus2003** Wed Mar 01, 2006 7:47 pm

It's very hard to value a growth company like GOOG, especially with the methods in your analysis. I am not saying your analysis is bad, the key is the methods you are using are not valid for analyzing GOOG.

**blast_investor** Wed Mar 01, 2006 7:55 pm

This reminds me a story that once Warren Buffett (or maybe Joel Greenblatt) asked students to value an internet company.

Students then came up with all kinds of answers, PE, growth, DCF modeling, etc.

In the end, Warren (maybe Joel) said, the correct answer for a value investor is "I do not know".

grus2003 wrote: It's very hard to value a growth company like GOOG, especially with the methods in your analysis. I am not saying your analysis is bad, the key is the methods you are using are not valid for analyzing GOOG.