Comparable Analysis Stock O/S Total Cash & Mkt

Company Price Shares(Million) Debt($M) Securities ($M)

Facebook 153.4 2929.78 0 32306
Twitter 18.2 768 1683 3944
Yandex 26.9 330.17 305 1041
Weibo 72.3 226.55 0 444.2
Baidu 179.3 351.8 4968 15515

Alphabet (31 December 2017) 976.6 691.75 3937 92439

Implied Share price of Alphabet

Flaw of this approach?

EBITDA Forward Forward ($M) Multiples
TTM($M) EPS(2018) Revenue (2018) P/E P/S EV/EBITDA
16308 5.99 49330 25.61 9.11 25.58
95 0.39 2460 46.67 5.68 123.33 Too high
372 1.14 1940 23.60 4.58 21.90
189.7 2.3 1470 31.43 11.14 84.00
2254 7.83 15210 22.90 4.15 23.31
Minimum 22.90 4.15 21.90
1st quartile 23.60 4.58 23.31
Median 25.61 5.68 25.58
3rd quartile 31.43 9.11 84.00
Maximum 46.67 11.14 123.33

32235 40.53 125200 24.10 5.40 18.21

P/E Forwar P/S Forwar EV/EBITDA
1st quartile 956 829 1198
Median 1038 1028 1267
3rd quartile 1274 1649 2000
EV/EBITDA
25.58

21.90
84.00
23.31
21.90
22.95
24.44
40.18
84.00
Comparable Analysis (early-June 2019) Share price($) EV ($bn)

Facebook 177 463.92

Apple 194 953.03
Amazon 1870 925.19
Alibaba group 160 428.95
Microsoft 132 966.17
Netflix 343 162.16
Paypal 116 135.58
Alphabet 1091 655.24
Number of outstanding shares of Alphabet 0.747 billion Net Debt of Alphabet=(160bn)
Valuation Multiples EV/TTM Revenue EV/Forward revenue
to growth to growth
Facebook 0.18 0.26
Apple 0.52 0.74
Amazon 0.14 0.16
Alibaba group 0.17 0.16
Microsoft 1.21 0.63
Netflix 0.32 0.27
Paypal 0.48 0.37
1st Quartile 0.17 0.21
Median 0.32 0.27
3rd quartile 0.50 0.50
Implied Enterprise Value of Alphabet EV/TTM Revenue EV/Forward Revenue
1st Quartile 497.64 667.46
Median 926.76 862.48
3rd quartile 1448.20 1565.72
Forward P/E multiple gives imlied share price
Implied Share Price of Alphabet EV/TTM Revenue EV/Forward Revenue
1st Quartile 880.38 1107.71
Median 1454.83 1368.79
3rd quartile 2152.88 2310.20

Bloomberg Approach
Look at the multiple of the target company at present and historical (preferabley 5-year MA)
For comparable firms, use current median values of the multiple and also historical (5-year aver
Present Historical
Target Company 20 18
Comparables 15 14
Premium or discount 0.3333333333333 0.285714285714286
Implied share price of the target 19.285714285714
 Revenue TTM ($bn) TTM Revenue 1-yr Forward Estimated TTM EBITDA ($bn)
4-year CAGR Revenue ($bn) Annual revenue growth
58.949 44.50% 84.12 21.20% 27.959
261.61 6.97% 269.68 4.80% 83.278
241.545 27.30% 324.02 17.70% 31.724
55.616 45.80% 73.56 35.6% 16.5851
122.21 6.56% 138.68 11.10% 55.735
16.814 30% 24.98 23.70% negative
15.89 17.70% 21.12 17.50% 3.509
142.01 20.30% 187.43 16.80% 42.293
Alphabet=(160bn)
EV/TTM EBITDA Forward P/E
to growth to growth
0.36 0.59 0.23427345032193
2.38 1.36
0.51 1.23
0.89 1.01
1.28 2.29
NA 0.82
2.12 1.86 1.14 1087.44828
0.61 0.91 812.32 814.977
1.09 1.23 159.737
1.91 1.61
EV/TTM EBITDA Forward PE
436.69 871.23 650.808327498842
782.22 1176.04
1375.58 1531.97

EV/TTM EBITDA Forward PE

798.78 871.23
1261.35 1176.04
2055.66 1531.97

cal (preferabley 5-year MA)

and also historical (5-year average)
EBITDA TTM 1-year Forward EPS-growth
4-year CAGR EPS($)
45.60% 9.32 32.20%
4.81% 12.78 11.20%
56.90% 38.11 39.80%
29.00% 6.52 24.40%
13.50% 5.11 11.30%
NA 5.86 71.30%
18.20% 3.51 17.80%
17% 53.59 17.80%

7.86985360226637
0.17685064274756
2623.2305
2623.2305

463.92