Google as an Income Play? Huh?
What do you think would happen if Google’s management announced tomorrow that its days of exceptional growth were coming to an end? That it anticipated its annual earnings growth would drop to a long term sustainable level of 10% a couple years from now and in response it planned to pay out at least 30% of its earnings in the form of a dividend similar to Microsoft. In this case study, we demonstrate the importance of analyzing alternative scenarios of future growth and income when valuing a company like Google. This is a core competency of the Market TopographerTM platform.