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.
Comments (1)
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.
Posted by Anonymous | August 15, 2007 9:38 AM