Five years since the Google ($GOOG) IPO

Today is five years since Google ($GOOG) had their initial public offering (IPO). That seems amazing to those of us that follow the markets.  In some ways the $GOOG IPO process feels like another time, long ago.  In other ways five years is but a heartbeat. The New York Times has a great piece looking back at the IPO and the skepticism around it. As I said – somehow it feels a long time ago.

After the IPO $GOOG was had a market capitalization of US$27 billion and five years later that has risen to US$140 billion – it has been higher.  Over five years $GOOG’s market capitalization has grown at a compound annual growth rate of just under 39%. That is pretty impressive. The graph below shows the closing prices for $GOOG over the last five years.

At Valuecruncher we have an interactive analyst report for $GOOG. Based on our discounted cash flow analysis – we believe $GOOG is currently fairly valued.

Disclosure: no position



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This entry was posted on Thursday, August 20th, 2009 at 10:51 am and is filed under Google. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Five years since the Google ($GOOG) IPO”

  1. Bob Says:
    August 20th, 2009 at 4:48 pm

    Good thing this is about valuation. Because technically, that chart looks like the clearest and most massive H&S top I’ve ever seen. Should be interesting when it gets to $480 or so. A clear break on volume would proably negate the H&S pattern. A selloff on volume would be cautionary for longs.

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