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anonymous

  • 5 years ago

Should I use Three Stage FCFE model to caculate the valuation of internet search firms like GOOGLE and BAIDU?

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  1. anonymous
    • 5 years ago
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    what else would you use?

  2. anonymous
    • 5 years ago
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    Though ihaven't looked at the earnings trends, you may also be able to consider the H-Model

  3. anonymous
    • 5 years ago
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    Use the higrowth.xls spreadsheet. You need to be able to change margins over time.

  4. anonymous
    • 5 years ago
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    Thanks, professor. the higrowth model assumes the company has negative earnings. but Baidu already has positive earnings. does it work? Also, if I use Relative Valuation method, which multiples should I use for Internet company? PEG?

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