Look 2 years into the future. Its Jan 15, 2014 and GOOG just released as expected year end results of $53.55/sh. That means they have over $200/shr in cash and probably 2015 eps of around $60. Where would you put the stock price today knowing that. I got to go with at least 15x 2015 + $200 in cash. That's 1100 which is about right IMO. In 2015 we're going to look at a current 20 PE + Cash so 1,400 then.