Editore"s Note
Tilting at Windmills

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April 27, 2004
By: Kevin Drum

GOOGLE: A NAME OR A VALUATION?....Google is expected to go public shortly at a valuation of about $25 billion. John Quiggin looks at Google's economic fundamentals and concludes, "I find it hard to draw a plausible earnings path that would yield a present value of $25 billion at any reasonable discount rate."

Well, duh. It's an internet company, John. Its valuation is based on the following: (a) it will never have any substantial competition, (b) earnings will increase 100% per year for the next century, (c) earnings growth is a discredited way of valuing companies anyway, and (d) you just don't get it, do you?

And they let this man have a blog?

Kevin Drum 1:51 PM Permalink | Trackbacks

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