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Strategies & Market Trends : Value Investing

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To: Graham Osborn who wrote (57697)	8/5/2016 9:43:31 PM
From: Paul Senior	Read Replies (1) of 78673

I am just using this dcf tool below for fun. Have no idea if it's accurate. Have no confidence that that's how to evaluate what a stock will do (vs what it might do if it were valued like academics and maybe some business people would view it, i.e with dcf). If GOOG hits the average (based on 40 analysts) earnings estimate of $40 for next year, that's a 20% grower. If earnings could do it again the next year (grow 20%) before subsequently falling to a measly 3%, then GOOG presumably is worth over $900/sh according to this calculator (if I use S&P @ 8%): moneychimp.com I don't normally use dcf to evaluate/value a stock. With GOOG's growth, giant footprint, and its apparent reluctance to maximize current earnings, I don't see that dcf analysis here is an adequate or sufficient way to make a buy decision for the company's stock. As I said earlier though, if the stock will drop a bit I might get a fill on a few more shares. Company and stock should do ok over next couple or more years. Of course, jmo.

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