Baidu: Impressive Growth, But Valuation is Out of Hand [View article]
i see the picture for BIDU completely different. the market doesn´t pay for historic but for future growth. analysts steadily increased their EPS estimates for 2007 to 1.62, which translates into 90% growth for the next year. based on these projections BIDU trades at a forward P/E of 54. to me the stock looks cheap. as you mentioned the company has a unique position in chinas internet market, which morgan stanley sees growing by 50% anullay throgh 2009. a dominant market share coupled with high growth never comes cheap
Baidu: Raising Questions on Valuation and Search Ads [View article]
if you don´t understand soon, you will loose alot of money.
you are betting against the dominant player in chinese internet.
the company is profitable and compared to it´s growth the stock is still cheap.
2007 pe stands at 66, revenue and EPS are projected to grow by more than 80%.
analysts keep raising their estimates.
what do you expect?
that a fast growing company trades at a forward pe of 30, or what?
you will never get a ferrari at the price of a corolla.
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Baidu: Impressive Growth, But Valuation is Out of Hand [View article]
the market doesn´t pay for historic but for future growth.
analysts steadily increased their EPS estimates for 2007 to 1.62, which translates into 90% growth for the next year. based on these projections BIDU trades at a forward P/E of 54.
to me the stock looks cheap.
as you mentioned the company has a unique position in chinas internet market, which morgan stanley sees growing by 50% anullay throgh 2009.
a dominant market share coupled with high growth never comes cheap