Something we talked about back in 2006, today Financial Times and SAI cover it, too. Google’s search business is catching up to MSFT’s windows business and might surpass it in 2009, I was being conservative, apparently.
Here is what I penned back in 2006:
So in 2010, Google’s current historical growth rate projects a revenue figure of $34 billion, with 25% profit margin of $8.2 billion, and with a P/E of 35, could technically command an enterprise value of $287 billion. It currently boasts some $10 billion, so at these levels, it would carry enough cash to push up its market cap northwards of $300 billion.
Today, MSFT has a market cap of $284 billion, and that includes a wallop of cash.
Tale of the tape: Google $287 billion; MSFT $284 billion…
There you have it. Told you it’s not a bubble, we’re actually talking revenues, profits and P/E.
Read it all here.
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