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Topic: Business
Number of pages / Number of words: 3 / 705
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This will further be clear if one understands that the percentage of revenues from Google Network websites as a percentage of total revenue is increasing. While it was just 25% in 2002, it grew to 44% in 2003 and 49% in 2004. The operating margins are going to go down going forward.

However the revenue growth going forward is expected to be pretty robust and so there should be a substantial absolute increase in earnings even though the margins may decline...


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However a company like any other asset has got a fair value and google seems to be at its fair value and may even be called a little overvalued. The diluted EPS for the latest 12 months (ending June 2005) is 3.41 and to that extent the P/E multiple multiple of the company is around 88, which is very high even for a fast growing company...


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