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Baidu, Inc. Message Board

  • ilygod ilygod Jan 25, 2008 3:06 PM Flag

    unsustainable P/E

    BIDU isn't that profitable. Heck, it is priced as if it has outperformed for the next 10 yrs with profits increasing 40% per quarter. This me too GOOG is generating profits less than 100 million.

    GOOG sports a P/E of 40ish and they generate profits in the billions.

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    • Anyone with a lick of sense knows that there isn't a one size fits all way of looking at P/E. Your comparison to Google based purely on year by year growth is also stupid based on the fact that the US doesn't average market growth of 9% and China could average higher if the market wasn't being regulated by the Chinese government in order to keep inflation down.

      For the time being it is overpriced, however the fact remains that for a stock like this you end up over paying to some extent based on past growth as well as future projected growth. Until someone takes market share from BIDU (GOOG didn't cut into BIDU share since there numbers are still the same even with GOOG growth) or earnings miss on more then one occasion this stock will come with premium.

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