CCA (Multiples) analysis method to determine the fair valuation of Alphabet, Inc. (GOOG) or Apple, Inc. (AAPL), using a 3-5 year forecasting period. In other words, what is the value today for either one of these companies and what do you determine the value to be 3-5 years in the future:

Your analysis should use a multiples approach and should include explanations for the following (one or two paragraphs):

1) Which multiples do you consider to be most appropriate for evaluating this type of company and why?

2) Regarding the comparable companies that you are using in your analysis, why are these appropriate companies?

3) Any assumptions that you are making in terms of determining your forecast (i.e. once you have determined the fair value based on comparable analysis method), what assumptions do you make in terms of growth potential over the next 3-5 year period? *(In order to determine your forecast, you should rely on the principles that we have discussed in the DCF approach)

Why is my answer for Google so LOW?

2 ($ in milions, ewcept share data 4 Ticker 177,000,000 1000,000 APPL MSFT 180.96 2,740 495,830 169.04 154.06 177.00 7 Market Cap 5,168 7.702 873,599 640,673 4,680 215,935 143,575 APPL 27,638 12,427 491,979.00 59,387 12,874 229,884.00 215,639 89,950 12 EBITOA 60,02422,326 13,105 177,000,000 14 Enetrprise Value 177,077.000 APPL 227,36896,239 2017E 78,633 39,244 62,022 63,289 23,887 13,445 19 EBITDA 20 21 22 Revenue 12,894 17646 APPL 267,850 105,855 2018E MSFT IBM 24 EBITOA 74,557 26.276 12,881 13,812 26 EVIRevenue EVIEBITDA 28 Ticker 29 30 MSFT 31 IBM 32 FB Revenue EBITDA EV 15,63960,02 89,950 22,326 79.919 13,105 27,638 12,427 59,387 12,874 894,069 595,397 77,077 491,979 229,884 3.34R 5.62w 2.25x 9.64x 3.61 14.90 26.67 11.99H 22.66 6.62 24.93 12.54 17.80R 3.87 39.59 17.86 27.88 21.44 11.99H 16.64 2.25 13.73 35 36 Median 3.592546315 17.80x 6.93H 39.59M 22.50H 19.55w 17.30 42 ALPHABET 2018E 130,813 3.608106:H 471,987 90,272 110,171 45 46 Median Multiple -Revenue Enterprise Value 374,280 433,220 EBITDA 2018E 42488 16.6440 707.162 23,320 51 Median Multiple -EBITDA 52 Enterprise Value 35783 17.8565 17.0977 523551 611,811 54 55 56 Blended Ev Shares Outstanidng Estimated Share Value