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>Google is probably the most undervalued tech company there is currently, by far: [reasons]

The only thing you left out of this analysis is their valuation. The market values Google at $2.05T (just over $2,000,000,000,000) which is 21 times their earnings (net profit). They are valued at $250 per person on Earth while selling, annually, $43.75 per person on Earth (sales) of which $12 per person is their profit.

How much would you pay to own a golden goose laying $12 in gold per year? Like, $250? If so you are the proud buyer of Google right now. (There is a buyer on every sale of every stock and this is the price they are paying right now.)




An alternative viewpoint is the consideration of the P/E of all of the Mag 7. These numbers might be slightly off since there's been a lot of market movement lately, but...

Apple (AAPL): 34.07

Microsoft (MSFT): 35.07

Amazon (AMZN): 36.69

Alphabet (GOOGL): 21.82

Meta Platforms (META): 24.49

Nvidia (NVDA): 41.33

Tesla (TSLA): 87.87

from this perspective Google, and to a lesser extent Meta, stand out as being valued quite conservatively.

Do I think Microsoft is performing 50% better than Google? Not really, no.


If the goose is likely to live for significantly longer than 20 years and has potential to lay $15 or $20 in the future then yes I'd probably buy that goose for $250. Of course there's risk with it (eg. Google might significantly lose business to competitors) but that's why you diversify. A PE of 20 for a mature company like Google isn't crazy. Even Coca Cola has a high PE at 28.


$12 in gold this year and $12 * (1+x) next year != $12 flat every single year


While keeping in mind that x might be a negative number.




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