GOOGLE
Financial Analysis Report
Prepared for:
Financial Management Class –
Florida Institute of Technology
February 2011
TABLE OF CONTENTS
EXECUTIVE SUMMARY 3
COMPANY INTRODUCTION 4
FINANCIAL ANALYSIS 5
Summary Financial Analysis Report 6
WEIGHTED AVERAGE COST OF CAPITAL (WACC) 10
FUTURE CASH FLOWS 12
ANALYSIS OF CASH FLOWS 13
Sensitivity Analysis of Google’s 2011 Future Cash Flow 14
Sensitivity Graph for Google’s 2011 Future Cash Flow 15
Sensitivity Graph for Google’s 2011 Future Cash Flow 15
Inflation Analysis 15
Google Inc. Discounting Future Cash Flows for Inflation @ 1.7%: 16 Footnotes effect on future cash flows 17
Analysis of Google Competitors 19
ANALYSIS OF CASH
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Furthermore, because Google’s employees d are also equity holders, morale is high and Google encourages its employees to feel a part of Google’s success.
In conclusion, Google is a sound investment that according to the analysis will continue to increase their profits and their dominance in the marketplace.
COMPANY INTRODUCTION
In 1998, Stanford University graduates Larry Page and Sergey Brin combined their ingenuity and built a search engine called “BackRub” that evolved into what is now known as Google. Google, with over 150 domains, now functions as a search engine that offers many different products and services including web applications, advertising, sports scores, stock quotes, headlines, addresses, videos, etc. Google’s focus is “to provide useful and relevant information to the millions of people around the world as they rely on us (Google) to provide the answers they are seeking.”
The strategy of focusing on getting information to millions of people internationally is the foundation of Google. Another strategy in which Google is unique is their culture. Google creates an atmosphere of creativity, teamwork and brainstorming which has helped win them a spot in the top 10 of Fortune magazine’s best companies in which to work.
Google offers services such as search advertising, display advertising, mobile advertising, tools for publishers,
Google Inc. is one of the leading computer search engines in the world and is continuing to grow as the
Google’s search engine allows users to input and submit data online. In return, the user would receive relevant search results. Behind the scenes upon the submission, web crawlers scan through billions of pages and link keywords from a user’s data to the publish data on the web. Their PageRank technology ranks these pages by the number and popularity of other sites that link to the page. This provides the user with accurate and popular results. Google search engines generated high revenues between advertising on its websites and selling its technology to other sites.
Google Inc. was founded in 1998 by Larry Page and Sergey Brin. By 2000 it had become the world 's largest search engine. This case study will examine the rise of the Google search engine, how it differs from its competitors, and possible threats it may face going forward.
search engine, cloud computing). What I have learned from doing research on the company Google would be that they focus on diversity, data, and non-typical corporate practices. Data is at the central for a lot decisions Google makes. Besides data examined for typical corporate business, Google’s also considers employee operations. An example of this would be lunch lines (Google offers free meals and snacks to employees), to make the most optimal lunch line (to meet new people and to prevent waste of time), Google has taken data to find and state that the most optimal lunch line is 3 to 4 minutes.
Founded on September 4, 1998 Google quickly revolutionized the search engine and the Internet alike. Within two years of starting operations Google had become the largest single search engine in the world and began to dominate the market. As the World Wide Web (web) grew in popularity and became more and more a part of everyone’s daily life, Google too grew in popularity “because it could provide simple, fast, and relevant search results” (Deresky, 2011). The differentiating factor was Google’s “PageRank technology which displays results…by looking for keywords inside web pages, but also gauging the importance of a search result based on the number and popularity of other sites that linked to the page” (Deresky,
Hi Jim, Impressive report on Google, the fact that this online organization has a multinational technology, specializing in not only advertising technology but cloud computing and software. Google is a household name for search engines, whenever people search online it is google search that retrieves the information. Amazing how an organization incorporated in 1996 that went public in 2004 now has over 1 billion searches daily. I also use one of the free gmail accounts that google offers that is known
Google Company is one of the global leaders in technology and in enabling people access information from the internet through their efficient search engines. Google immediately gained the attention of the internet sector for being a better search engine than its competitors (Wheelen, Hunger, Hoffman, & Bamford, 2015). This was after a tremendous effort in marketing their services and capturing a large market worldwide. However, there being so many risks and challenges in this line of business Google has had the urge to come up with new strategies so that they are able to overcome any challenge before them. The major problem that Google has
Google is a multinational corporation that serves thousands of consumers worldwide. Through Internet related products such as Internet searches, maps, emails, mobile apps, and other online contents for users Google became the company it is today. Every employee of Google is different in his or her own way; making it a well-diversified organization similar to the global audience they serve. Google’s mission statement is to organize information from all around the world and make it universally accessible at a quick and orderly fashion. This means creating a search engine smart
Google is also a successful company. This factors into making it attractive because the company can offer superior compensation packages. Employees who have been granted stock now find their shares have increased in value significantly, and this has served to increase the wealth of everybody at the company. The company is also able to spend on its employees, and these perks cost little in comparison with the value that most
The company's official mission statement is "to organize the world's information and make it universally accessible and useful" (Google, 2012). Google hires people who are smart and determined, and the organization favors ability over experience (Google, 2012). Google is one of the top tech companies in the world and as a result it attracts some of the world's top talent. Although many of the employees share common goals and visions for the company, they all hail from different walks of life and speak dozens of languages, reflecting the global audience they market to.
Google has dominated ⅔ of the US internet search and 70% worldwide. Google Maps, Youtube, Chrome, Android and etc., there are billions of users using Google's products. Now Google has created a new company called Alphabet. Larry Page will be the CEO of the company and Sergey Brin for the president. What is Alphabet? Alphabet is a collection of companies. Alphabet is about business prospering through strong leaders and independence. Its model is to have a strong CEO who runs each business. The company recorded revenues of $66,001 million during the financial year ended December 2014. The strong growth in the revenues were driven by an increase in advertising revenues generated by Google websites. The operating profit of the company was $14,444 million in December 2014,
Google motto is to ‘Improving organize the world’s information and make it universally accessible and useful’. It has an immense portfolio of products and services ranging from Google search engine, Google Earth, Gmail,
When still in beta version, Google was answering 10000 queries per day and hence it caught fancy of the media. Being declared the search engine of the year, Google started achieving milestones and is still a huge success.
Google is a worldwide company with its logo ‘GOOGLE’. It serves internet industries and provides
Google, Inc. is an American search engine company that is a subsidiary of the holding company Alphabet Inc. It is the base of most of the world’s internet experience with over 70 percent of all online searches being used by Google. Their biggest profit area is the advertising department, as it accounts for over 90 percent of the company’s overall revenues. Google began as an online search firm, but now offers more than 50 Internet services and products. The recent acquisition of Motorola Mobility in 2012, made them competitors in the hardware market by selling mobile phones. Even with the expansion into different markets, Google’s core of success remains with the original search tool. Combined with the major success of Apple, the United States has become the biggest threat to other countries in the technology market. (https://www.britannica.com/topic/Google-Inc )