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Google's stabalizing PE ratio

Google has finally reached a stable P/E (price to earnings ratio)! We have written about Google’s declining P/E and how we expected it to stabilize soon. The P/E has stabilized and is even slightly increasing. This should mean strong price appreciation for Google's stock. Google's earnings are expected to keep growing at over 20% through the rest of the year. With a stable P/E this means Google’s stock price should grow by at least 20%.

Below is a 1 year chart that shows the declining P/E and how it has recently stabilized.


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Comments (1)

Anonymous:

Google's stock price was just incredible overpriced after the IPO and now it's finally come back down to earth. I would expect to see a P/E above 50 anytime soon.


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