Over the past few day's Google Inc. (GOOG) has cleared significant overhead resistance. The resistance level that Google cleared was $1,040.00 per share. Using the Discounted Cash Flow valuation method, I will calculated the next resistance level to create a short-term price target. Also using the DCF method, I will assess the downside risk if the stock drops below the $1,040 resistance price level.
The Discounted Cash Flow valuation relies heavily on the company's operating income, tax's paid, depreciation & amortization as well as the EBITDA or earnings before interest, taxes and depreciation & amortization to create a stock price target.
Establishing a resistance level
As the DCF calculation below indicates Google Inc. traded at 20x EBITDA to create a support level of ~$1,040.00 per share.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.