Google Valuation
Next month will mark 3 years as a public company for The Google. The company is worth just shy of $169 bn at $541 a share.
If you thought this time last year that Google was over-valued you probably wouldn’t be alone but you would have missed out on the 29% increase the stock has gained since a year ago.
But even funnier is to look back upon the valuation just before the company went public. Take a look at this fantastic article on CNN Money
“Something this famous has no value left,” according to Jim Awad of Awad Asset Management. Jim probably didn’t get a call back in the coming years to comment on Google.
The article continues:
Articles speculate that the company’s market cap could easily reach $25 billion. In fact, Forrester Research chairman and CEO George Colony says any valuation over $15 billion is too hefty.
He says, “What the world needs now is a calm, ordered, rationale smart equities market in technology — not overpriced froth.”
Amen George. Those comments came on the back of a report he authored. here is Battelle’s summary of it.
Colony concludes that a Google IPO in the $6 billion range would be defensible, but a $15 billion+ IPO would suck the capital out of the market and be very bad for the tech world.
Ahh 2004.
