cafeconomics

Google Search and products like Google Maps, Google Play and You Tube have become an integral part of our lives. Not a day passes by without using Google Search or Maps or You Tube and perhaps no other product or service has captured popular imagination as much as Google has in the last couple of decades. No wonder that Google attracts so much of regulatory attention. This article provides a description of Google's revenue mix and metrics. (of course,with some help from Google search!! and MS Excel not Google Sheets!) In August 2015, Google has re-organized itself into a holding company called Alphabet with two subsidiaries – 1) Google includes main products such as ads, Android, Chrome, hardware, Google Cloud, Google Maps, Google Play, Search, and YouTube, 2) Other Bets include Access, Calico, Capital G, GV, Verily, Waymo, and X, among others. (Annual Report 2019) To put things in perspective, Google accounted for 31.1% of global digital ad spending or $ 103.73 billion at the begi...

Avenue Supermarts has grown at CAGR of more than 25% in the last five years and its market cap crossed Rs 1.5 trillion mark in Feb 2020. The current market price is at Rs2492.10, trading at 124.1 times of earnings against an industry average of 97.18 times PE (moneycontrol.com). The stock overtook NTPC, Indian Oil Corporation (IOCL), Coal India, UltraTech Cement and HDFC Life Insurance Company in the past five weeks to stand at number 20th position in the overall market capitalisation ranking. (Business Standard, Feb 2020) Avenue Supermarts has all the attention of the stock market participants and a discounted flow valuation has been presented below. The promoter shareholding is around 80% and as per SEBI norms they need to shed another 5.21% before the end of the current financial year. Assuming that the QIP and proposed OFS fetches a total of Rs8000 crores in the current year, the DCF valuation gives a value of Rs 1997.15 per share. The assumptions used in this model are describe...