How would you value AdMob at the end of 2009?
- As a stand-alone firm by filling in the following table. AdMob's Nov. 2019 revenue was estimated to be 60million. This suggests that Google's offers price for AdMob is a multiple of 12-17 times. AdMob was acquired for $750million.
2. As an acquisition target
exhibit 18: 
0.35% 3.42% Google Inc Risk Free Rate, 1-year Treasury Note: Average for May, 2010 Risk Free Rate, 10-year Treasury Note: Average for May, 2010 Required Market Risk Premium relative to 10-year Treasury Note Beta Google's estimated ke (based on case Exhibit 18) Adjustment for Size, Liquidity Admobs Cost of Equity Capital 5% -6% 1.12 15% 12/31/09 Admob's FCF Estimates (in millions) Net Revenues EBIT(1-T) Depreciation Capex Change in NWC Free Cash Flows AdMob's Terminal Value estimates Warranted MV firm / EBIT (1-tax rate), using Google's 2009 multiple Warranted MV firm / Sales, using Googles's 2009 multiple 12/31/13 $146.48 $31.29 $10.10 $23.18 $137.24 12/31/12 $107.04 $13.97 $7.31 $10.67 $28.45 12/31/11 $77.93 $11.83 $5.32 $11.91 $7.56 12/31/10 $55.68 $15.35 $2.57 $11.37 $11.34 12/31/13 12/31/12 12/31/11 12/31/10 12/31/09 Value of AdMob Using, Warranted MV Firm/EBIT (1-tax rate; as multiple Using. Warranted MV Firm / Sales; as multiple Google + Admob Millenia Media Yahoo Microsoft Quattro Wireless JumpTap AOL Others $ $ $ $ $ $ $ $ $ 68.00 51.00 32.00 23.00 21.00 11.00 7.00 65.93 278.93 24% 18% 11% 8% 8% 4% 3% 26% Google Millenia Media Admob Yahoo Microsoft Quattro Wireless JumpTap AOL Others $ $ $ $ $ $ $ $ $ $ 28,00 51.00 40.00 32.00 23.00 21.00 11.00 7.00 65.93 278.93 10% 18% 14% 11% 8% 8% 4% 3% 26% 12/31/04 $51.46 12/31/05 $122.93 12/31/06 $142.29 12/31/07 $216.37 12/01/2018 896.95 121209 $197.01 6/2010 $141.80 Market Value of Equity (billions) Book Value of Equity (billions) $2.9 $9.4 $17.04 $22.69 $28.24 $36.0 $40.61 Exhibit 2. Google Inc. Historical Revenue Growth Google's Revenue (In thousands, except per share amounts) 2003 2004 2005 1,465,934 3,189.223 6,138,560 234% 118% 92% 792,063 1,589,032 3.377,061 158% 101% 13% 628,600 1,554,256 2,687,942 505% 147% 73% 1.420,663 3,143,2886,065,003 246% 121% 93% 45,2711 45.935 73,558 58% 1% 60% 2006 10,604,917 73% 6,332.797 88% 4.159,831 55% 10,492,628 73% 112 289 53% 2001 2002 Revenues 86,426 439,508 YIY Growth Rate 352% 409% Google web sites 66,932 306,978 Y/Y Growth Rate NA 359% Google Network web sites 0 103,937 YIY Growth Rate NA NA Total Advertising Revenues 66.932 410,915 YIY Growth Rate NA 514% Licensing & other revenues 19.494 28.593 YIY Growth Rate NA 47% As % of Revenues Google web sites 77% Google Network web sites 24% Licensing & other revenue 23% Source:http://investor.google.com/fin_data.html 2007 2008 16,593,986 21,795,550 56% 31% 10.624,705 14,413,826 68% 36% 6,714,688 39% 16,412,643 21,128,514 56% 29% 181,343 | 667,036 61% 268% 2009 23,650,563 9% 15.722.486 9% 7.166,318 16% 7% 22,888,804 8% 761.759 14% 70% 54% 50% 55% 60% 64% 35% 66% 0% 49% 39% 1% 3% 67% 30% 3% 31% 3% 1% 1% 1% Google Inc.'s Acquisition of Ad Mob Exhibit 3. Google Inc.'s Historical Income Statements Currency Consolidated Scale 12/31/2009 12/31/2008 12/31/2007 12/31/2006 12/31/2005 12/31/2004 12/31/2003 12/31/2002 12/31/2001 USD USD USD USD USD USD USD USD Yes Yes Yes Yes Yes Yes Yes Yes Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands USD Yes 23,650,563 8,844,115 14,806,448 3,651,235 2,843,027 16,593,986 6,649,085 9,944,901 2.740,516 2,119,985 10,604,917 4,225,027 6,379,890 1,601,305 1,228,589 0 2,829,894 3,549,996 411,806 0 6,138,560 2.571.509 3,567.051 975,795 483,978 90,000 1,549,773 2,017,278 120.262 3,189,223 1,457,653 1.731.570 664,746 225,632 201,000 1,091,378 640,192 15,134 1.465,934 625,854 840,080 406,388 91,228 439,508 131,510 307,998 89,784 31,748 86.426 14,228 72,198 44.734 16,500 21.795,550 8,621,506 13,174,044 3.748,883 2.793,192 0 6,542,075 6,631.969 389,533 94,205 - 171,877 - 1,090,234 -778,373 5,853,596 1,626,738 0 4,860,501 5,084,400 558,002 497,616 342,464 732 Total Revenue Direct Costs Gross Profit Selling General & Admin Research & Development Other Operating Expense Total Indirect Operating costs Operating Income Interest Income Gains on Sale of Assets Foreign Exchange Gains Other Non-Operating Income Total Non-Operating Income Earnings Before Tax Taxation Extraordinary Items Accounting Changes Net Income 121,532 186,466 -1 355 61 234 10.964 -897 6,494,262 8,312,186 229,673 96.738 -259,778 2,370 69,003 8,381,189 1,860,741 3.458 4,190 31,578 589,580 5,673,980 1,470,260 49,23B 461,044 4,011,040 933,594 4,137 124,399 2,141,677 676.280 -5,092 10.042 650 234 251,115 - 196 -1,551 184.915 85,259 346.654 241,006 -896 10,068 3,083 O 105,648 399.119 99,656 6,985 1,465,397 4,203,720 3,077.446 4,226,858 6,520,448 4.226,858 315,140,484 4,203,720 312,917,000 6,520,448 317.772,051 3,077,446 308,997,486 Nethcome to Common Shares Outstanding 399,119 266,917,000 1,465,397 296,330,644 105,648 160,866,000 99,656 145,346,000 6,985 137.384,000 Google Inc.'s Acquisition of Ad Mob Exhibit 16. Selected Google Acquisitions of US Companies Acquisition Date Acquired Firm Acquired Form Business Offer Price Acquired Firm Revenues Acquired Firm Earnings Applied Semantics Marc Broadcasting NA Oct-06 Mar-07 NA NA Doublecia FeedBurner 550 m - Online Advertising Advertising Video Sharing In-game Advertising Online Advertising Web Feed Online Video Video Compression Online Advertising Social Search Microsoft Office File Sharing S102 mil NA 5102 mit NA 51 65 5224 mil 523 millNA $31 bill $300 5100 mil NA 515 mil NA 5124.5 mil 5163 mil 5750 mil 545 mil-560 m 550 m NA $25 mil NA NA Mob Feb 10 Docverse NA Exhibit 17. Google Inc. Historical Profitability Ratios 1291/2009 231/2008 Google Inc Profa Rais 1201/2007 1201.2005 12/31/2005 16 1221/2004 2003 189 1231/2002 SA 84 15 80% 583 Google Inc.'s Tumover.com 1201.2009 1231 2002 12/31/2007 1231/2006 1234/2005 05 78 Colection period in days) 357 ma 476 3128 155 55 455 3870 182 Payabas period in days) 75 Google Inc. levarage and liquidity 1231/2009 1231/2008 1.12 12/31/2007 1.12 12/31/2006 1.08 12031/2005 12/31/2009 13761 0.02 Tires interest med Debt tot maist value Debt to equity manet eve) Curent to Acit test 0.04 004 8.77 8. TT 0.01 849 8.49 001 001 1000 10.00 001 0.01 12.08 12.00 001 7.91 791 10.62 Google Inc's doquisition of AdMob Exhibit 4. Google Inc.'s Historical Balance Sheets Currency Consolidated USD Yes 12/31/2009 12/31/2008 12/31/2007 12/31/2006 12/31/2005 12/31/2004 12/31/2003 12/31/2002 thousands) USD in thousands) USD (in thousands) USD (in thousands USD (in thousands USD (in thousands USD (in thousands) USD in thousands Yes Yes Yes Yes Yes Yes Yes 10,197 588 14.287 187 24 484 775 3.178.471 667,650 836,062 29.166.958 B.130,134 3,285,524 4,844,610 128,977 5,677,503 262,611 416,119 40,496,778 1.892 307 215,867 1,676,440 8.656,672 7.189,099 15,845,771 2,642.192 286,105 1,404,114 20,178,182 7.576,341 2.342.498 5,233,843 85,160 5,836,544 6,081,593 8.137,020 14,218,613 2,162,521 213,791 694.213 17.289,138 5,519.912 1,480,651 4,039,261 1.059,694 2,745,964 33,219 168,530 25,335,806 1.392.497 292.106 1,110,391 3,544,671 7,699,243 11,243.914 1,322,340 29.713 443,880 13,039,847 3.289,594 894,355 2.395,239 1,031,850 1,891,960 3.877.174 4,157 073 8,034247 687,976 49,341 229,507 9.001,071 1.417.425 455,676 961,749 426,873 1.705,424 2,132,297 311.836 89,972 159,360 2,693,465 583,068 204,152 378,916 148,995 185,723 334718 154.690 22,105 48,721 560,234 261,837 73,582 188.255 57.752 88,579 146,331 61,994 12,646 10,825 231,796 86,886 33,013 53,873 277,683 105,556 96 Cash & Equivalents Short Term investments Cash & Equins & ST hvestments Receivables (ST) Current Tax Assets Other Current Assets Total Current Assets Gross Property Plant & Equp Accumulated Depreciation Net Property Pant & Equip Long Term investments htangible Assets Deferred LT Assets Other Assets Total Assets Accounts Payable & Accrued Exps Accounts Payable Accrued Expenses Current Debt Current Lease Obligations Other Current Liabilities Total Current Liabilities LT Debt & Leases Deferred LT Liabilities Other Liabilities Total Liabilities Common Share Capital Preferred Share Capital Additional Paid In Capital Retained Earnings Accum Other Comprehensive income Other Equity Total Equity Total Liabilities & Equity 0 UL 433,846 31.767,575 1.522,194 178,004 1.344.190 114.455 18,473.351 933,204 211,169 722.035 31,310 10,271,813 530,134 115,575 414,559 193,887 11,590 35.493 3,313,351 237,847 32,672 205,175 17413 871.458 168,369 46,175 122.194 1,127 266,892 37.022 9,394 27.628 855,160 2.747 467 0 643,105 2,035,602 371.383 1,304,587 215.250 745,384 1,902 100,619 340,368 41,618 1,703,469 4,492,554 318 779,896 2,302,090 0 42,333 1,184,290 3,528,713 315 30,249 580,276 2,646,127 313 60,427 68,497 1,433,511 36,484 384.295 309 4,350 48,136 89.508 6,512 2.481 14,438 112.939 145 44,346 83,410 85,704 267 4,621 62.462 235,452 1,988 23.524 21724 282.688 161 44.346 725.219 191352 1,660 373.968 588,770 871458 0 13.241.221 9,334.772 113,373 11,882,906 5.133,314 23,311 45,887 61,585 852,856 293 0 7.477,792 2,055,868 4,019 - 119.015 9,418,957 10,271,813 15,816,738 20,082,078 105,090 -83,348 36.004.224 40,496,778 14,450,338 13,561,630 226,579 -6,677 28 238,862 31.767,575 2,582,352 590,471 5,436 249.470 2,929,056 3,313,351 22,689.679 25,335,806 17,039,840 18,473,351 39,701 173,953 286,892 HEC Montreal 12/31/2009 317.772051 619.98 12/31/2008 315,140.484 307.65 Shares Outstanding Price per Share 12/31/2007 312,917,000 691.48 12/31/2006 308,997,486 460.48 12/31/2005 2 96,330,644 414.86 12/31/2003 160,866,000 12/31/2002 145,346,000 266,917,000 192.79 Equity Market Value of Equity (thousands) Book Value of Equity (thousands) $ S 197,012,316.18 36,004,224 96.952,969.90 28,238,862 $ 216,375,847.16 22,689,679 $142,287,162.35 $ 122,935,730.97 17.039,840 9,418,957 $ 51,458,928.43 2 ,929,056 Debt Market Value of Debt Book Value of Debt 0.35% Risk Free Rate, 1-year Treasury Note: Average for May, 2010 Risk Free Rate, 10-year Treasury Note: Average for May, 2010 Required Market Risk Premium relative to 10-year Treasury Note Beta 3.42% 5% -6% 1.12 12/31/2005 12/31/2003 12/31/2002 Google Inc.'s Valuation ratios Price / Earnings MV Firm / EBIT (1-Tax rate) Price / Sales MV firm / Sales MV Equity / BV Equity My firmyBV firm 12/31/2009 30.38 30.47 8.33 12/31/2008 23.11 20.25 4.45 12/31/2007 52.03 57.44 13.04 13.04 9.54 9.54 12/31/2006 46.33 52.24 13.42 13.42 8.35 8.35 12/31/2004 132.05 130.95 16.14 16.14 4.45 17.57 3.43 3.43 17.57 0.35% 3.42% Google Inc Risk Free Rate, 1-year Treasury Note: Average for May, 2010 Risk Free Rate, 10-year Treasury Note: Average for May, 2010 Required Market Risk Premium relative to 10-year Treasury Note Beta Google's estimated ke (based on case Exhibit 18) Adjustment for Size, Liquidity Admobs Cost of Equity Capital 5% -6% 1.12 15% 12/31/09 Admob's FCF Estimates (in millions) Net Revenues EBIT(1-T) Depreciation Capex Change in NWC Free Cash Flows AdMob's Terminal Value estimates Warranted MV firm / EBIT (1-tax rate), using Google's 2009 multiple Warranted MV firm / Sales, using Googles's 2009 multiple 12/31/13 $146.48 $31.29 $10.10 $23.18 $137.24 12/31/12 $107.04 $13.97 $7.31 $10.67 $28.45 12/31/11 $77.93 $11.83 $5.32 $11.91 $7.56 12/31/10 $55.68 $15.35 $2.57 $11.37 $11.34 12/31/13 12/31/12 12/31/11 12/31/10 12/31/09 Value of AdMob Using, Warranted MV Firm/EBIT (1-tax rate; as multiple Using. Warranted MV Firm / Sales; as multiple Google + Admob Millenia Media Yahoo Microsoft Quattro Wireless JumpTap AOL Others $ $ $ $ $ $ $ $ $ 68.00 51.00 32.00 23.00 21.00 11.00 7.00 65.93 278.93 24% 18% 11% 8% 8% 4% 3% 26% Google Millenia Media Admob Yahoo Microsoft Quattro Wireless JumpTap AOL Others $ $ $ $ $ $ $ $ $ $ 28,00 51.00 40.00 32.00 23.00 21.00 11.00 7.00 65.93 278.93 10% 18% 14% 11% 8% 8% 4% 3% 26% 12/31/04 $51.46 12/31/05 $122.93 12/31/06 $142.29 12/31/07 $216.37 12/01/2018 896.95 121209 $197.01 6/2010 $141.80 Market Value of Equity (billions) Book Value of Equity (billions) $2.9 $9.4 $17.04 $22.69 $28.24 $36.0 $40.61 Exhibit 2. Google Inc. Historical Revenue Growth Google's Revenue (In thousands, except per share amounts) 2003 2004 2005 1,465,934 3,189.223 6,138,560 234% 118% 92% 792,063 1,589,032 3.377,061 158% 101% 13% 628,600 1,554,256 2,687,942 505% 147% 73% 1.420,663 3,143,2886,065,003 246% 121% 93% 45,2711 45.935 73,558 58% 1% 60% 2006 10,604,917 73% 6,332.797 88% 4.159,831 55% 10,492,628 73% 112 289 53% 2001 2002 Revenues 86,426 439,508 YIY Growth Rate 352% 409% Google web sites 66,932 306,978 Y/Y Growth Rate NA 359% Google Network web sites 0 103,937 YIY Growth Rate NA NA Total Advertising Revenues 66.932 410,915 YIY Growth Rate NA 514% Licensing & other revenues 19.494 28.593 YIY Growth Rate NA 47% As % of Revenues Google web sites 77% Google Network web sites 24% Licensing & other revenue 23% Source:http://investor.google.com/fin_data.html 2007 2008 16,593,986 21,795,550 56% 31% 10.624,705 14,413,826 68% 36% 6,714,688 39% 16,412,643 21,128,514 56% 29% 181,343 | 667,036 61% 268% 2009 23,650,563 9% 15.722.486 9% 7.166,318 16% 7% 22,888,804 8% 761.759 14% 70% 54% 50% 55% 60% 64% 35% 66% 0% 49% 39% 1% 3% 67% 30% 3% 31% 3% 1% 1% 1% Google Inc.'s Acquisition of Ad Mob Exhibit 3. Google Inc.'s Historical Income Statements Currency Consolidated Scale 12/31/2009 12/31/2008 12/31/2007 12/31/2006 12/31/2005 12/31/2004 12/31/2003 12/31/2002 12/31/2001 USD USD USD USD USD USD USD USD Yes Yes Yes Yes Yes Yes Yes Yes Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands USD Yes 23,650,563 8,844,115 14,806,448 3,651,235 2,843,027 16,593,986 6,649,085 9,944,901 2.740,516 2,119,985 10,604,917 4,225,027 6,379,890 1,601,305 1,228,589 0 2,829,894 3,549,996 411,806 0 6,138,560 2.571.509 3,567.051 975,795 483,978 90,000 1,549,773 2,017,278 120.262 3,189,223 1,457,653 1.731.570 664,746 225,632 201,000 1,091,378 640,192 15,134 1.465,934 625,854 840,080 406,388 91,228 439,508 131,510 307,998 89,784 31,748 86.426 14,228 72,198 44.734 16,500 21.795,550 8,621,506 13,174,044 3.748,883 2.793,192 0 6,542,075 6,631.969 389,533 94,205 - 171,877 - 1,090,234 -778,373 5,853,596 1,626,738 0 4,860,501 5,084,400 558,002 497,616 342,464 732 Total Revenue Direct Costs Gross Profit Selling General & Admin Research & Development Other Operating Expense Total Indirect Operating costs Operating Income Interest Income Gains on Sale of Assets Foreign Exchange Gains Other Non-Operating Income Total Non-Operating Income Earnings Before Tax Taxation Extraordinary Items Accounting Changes Net Income 121,532 186,466 -1 355 61 234 10.964 -897 6,494,262 8,312,186 229,673 96.738 -259,778 2,370 69,003 8,381,189 1,860,741 3.458 4,190 31,578 589,580 5,673,980 1,470,260 49,23B 461,044 4,011,040 933,594 4,137 124,399 2,141,677 676.280 -5,092 10.042 650 234 251,115 - 196 -1,551 184.915 85,259 346.654 241,006 -896 10,068 3,083 O 105,648 399.119 99,656 6,985 1,465,397 4,203,720 3,077.446 4,226,858 6,520,448 4.226,858 315,140,484 4,203,720 312,917,000 6,520,448 317.772,051 3,077,446 308,997,486 Nethcome to Common Shares Outstanding 399,119 266,917,000 1,465,397 296,330,644 105,648 160,866,000 99,656 145,346,000 6,985 137.384,000 Google Inc.'s Acquisition of Ad Mob Exhibit 16. Selected Google Acquisitions of US Companies Acquisition Date Acquired Firm Acquired Form Business Offer Price Acquired Firm Revenues Acquired Firm Earnings Applied Semantics Marc Broadcasting NA Oct-06 Mar-07 NA NA Doublecia FeedBurner 550 m - Online Advertising Advertising Video Sharing In-game Advertising Online Advertising Web Feed Online Video Video Compression Online Advertising Social Search Microsoft Office File Sharing S102 mil NA 5102 mit NA 51 65 5224 mil 523 millNA $31 bill $300 5100 mil NA 515 mil NA 5124.5 mil 5163 mil 5750 mil 545 mil-560 m 550 m NA $25 mil NA NA Mob Feb 10 Docverse NA Exhibit 17. Google Inc. Historical Profitability Ratios 1291/2009 231/2008 Google Inc Profa Rais 1201/2007 1201.2005 12/31/2005 16 1221/2004 2003 189 1231/2002 SA 84 15 80% 583 Google Inc.'s Tumover.com 1201.2009 1231 2002 12/31/2007 1231/2006 1234/2005 05 78 Colection period in days) 357 ma 476 3128 155 55 455 3870 182 Payabas period in days) 75 Google Inc. levarage and liquidity 1231/2009 1231/2008 1.12 12/31/2007 1.12 12/31/2006 1.08 12031/2005 12/31/2009 13761 0.02 Tires interest med Debt tot maist value Debt to equity manet eve) Curent to Acit test 0.04 004 8.77 8. TT 0.01 849 8.49 001 001 1000 10.00 001 0.01 12.08 12.00 001 7.91 791 10.62 Google Inc's doquisition of AdMob Exhibit 4. Google Inc.'s Historical Balance Sheets Currency Consolidated USD Yes 12/31/2009 12/31/2008 12/31/2007 12/31/2006 12/31/2005 12/31/2004 12/31/2003 12/31/2002 thousands) USD in thousands) USD (in thousands) USD (in thousands USD (in thousands USD (in thousands USD (in thousands) USD in thousands Yes Yes Yes Yes Yes Yes Yes 10,197 588 14.287 187 24 484 775 3.178.471 667,650 836,062 29.166.958 B.130,134 3,285,524 4,844,610 128,977 5,677,503 262,611 416,119 40,496,778 1.892 307 215,867 1,676,440 8.656,672 7.189,099 15,845,771 2,642.192 286,105 1,404,114 20,178,182 7.576,341 2.342.498 5,233,843 85,160 5,836,544 6,081,593 8.137,020 14,218,613 2,162,521 213,791 694.213 17.289,138 5,519.912 1,480,651 4,039,261 1.059,694 2,745,964 33,219 168,530 25,335,806 1.392.497 292.106 1,110,391 3,544,671 7,699,243 11,243.914 1,322,340 29.713 443,880 13,039,847 3.289,594 894,355 2.395,239 1,031,850 1,891,960 3.877.174 4,157 073 8,034247 687,976 49,341 229,507 9.001,071 1.417.425 455,676 961,749 426,873 1.705,424 2,132,297 311.836 89,972 159,360 2,693,465 583,068 204,152 378,916 148,995 185,723 334718 154.690 22,105 48,721 560,234 261,837 73,582 188.255 57.752 88,579 146,331 61,994 12,646 10,825 231,796 86,886 33,013 53,873 277,683 105,556 96 Cash & Equivalents Short Term investments Cash & Equins & ST hvestments Receivables (ST) Current Tax Assets Other Current Assets Total Current Assets Gross Property Plant & Equp Accumulated Depreciation Net Property Pant & Equip Long Term investments htangible Assets Deferred LT Assets Other Assets Total Assets Accounts Payable & Accrued Exps Accounts Payable Accrued Expenses Current Debt Current Lease Obligations Other Current Liabilities Total Current Liabilities LT Debt & Leases Deferred LT Liabilities Other Liabilities Total Liabilities Common Share Capital Preferred Share Capital Additional Paid In Capital Retained Earnings Accum Other Comprehensive income Other Equity Total Equity Total Liabilities & Equity 0 UL 433,846 31.767,575 1.522,194 178,004 1.344.190 114.455 18,473.351 933,204 211,169 722.035 31,310 10,271,813 530,134 115,575 414,559 193,887 11,590 35.493 3,313,351 237,847 32,672 205,175 17413 871.458 168,369 46,175 122.194 1,127 266,892 37.022 9,394 27.628 855,160 2.747 467 0 643,105 2,035,602 371.383 1,304,587 215.250 745,384 1,902 100,619 340,368 41,618 1,703,469 4,492,554 318 779,896 2,302,090 0 42,333 1,184,290 3,528,713 315 30,249 580,276 2,646,127 313 60,427 68,497 1,433,511 36,484 384.295 309 4,350 48,136 89.508 6,512 2.481 14,438 112.939 145 44,346 83,410 85,704 267 4,621 62.462 235,452 1,988 23.524 21724 282.688 161 44.346 725.219 191352 1,660 373.968 588,770 871458 0 13.241.221 9,334.772 113,373 11,882,906 5.133,314 23,311 45,887 61,585 852,856 293 0 7.477,792 2,055,868 4,019 - 119.015 9,418,957 10,271,813 15,816,738 20,082,078 105,090 -83,348 36.004.224 40,496,778 14,450,338 13,561,630 226,579 -6,677 28 238,862 31.767,575 2,582,352 590,471 5,436 249.470 2,929,056 3,313,351 22,689.679 25,335,806 17,039,840 18,473,351 39,701 173,953 286,892 HEC Montreal 12/31/2009 317.772051 619.98 12/31/2008 315,140.484 307.65 Shares Outstanding Price per Share 12/31/2007 312,917,000 691.48 12/31/2006 308,997,486 460.48 12/31/2005 2 96,330,644 414.86 12/31/2003 160,866,000 12/31/2002 145,346,000 266,917,000 192.79 Equity Market Value of Equity (thousands) Book Value of Equity (thousands) $ S 197,012,316.18 36,004,224 96.952,969.90 28,238,862 $ 216,375,847.16 22,689,679 $142,287,162.35 $ 122,935,730.97 17.039,840 9,418,957 $ 51,458,928.43 2 ,929,056 Debt Market Value of Debt Book Value of Debt 0.35% Risk Free Rate, 1-year Treasury Note: Average for May, 2010 Risk Free Rate, 10-year Treasury Note: Average for May, 2010 Required Market Risk Premium relative to 10-year Treasury Note Beta 3.42% 5% -6% 1.12 12/31/2005 12/31/2003 12/31/2002 Google Inc.'s Valuation ratios Price / Earnings MV Firm / EBIT (1-Tax rate) Price / Sales MV firm / Sales MV Equity / BV Equity My firmyBV firm 12/31/2009 30.38 30.47 8.33 12/31/2008 23.11 20.25 4.45 12/31/2007 52.03 57.44 13.04 13.04 9.54 9.54 12/31/2006 46.33 52.24 13.42 13.42 8.35 8.35 12/31/2004 132.05 130.95 16.14 16.14 4.45 17.57 3.43 3.43 17.57
