Valuation of Internet and Technology Stocks: Implications for Investment Analysis

Purchase Valuation of Internet and Technology Stocks - 1st Edition. Print Book 1st Edition. Implications for Investment Analysis . It also demonstrates how the New Economics necessitates new forms of investment analysis. This book.
Table of contents

Implications for Investment Analysis. Chapter 4 Valuation techniques for traditional common stocks. Chapter 5 Applying the Porter model to the valuation of Internet and technology stocks. Chapter 7 Bubbleology stock markets and the Internet and technology stock price collapse.

Valuation of Internet and Technology Stocks - O'Reilly Media

Ad hoc techniques and DCF revisited. Chapter 10 Derivatives markets real options and the valuation of Internet and technology stocks. Chapter 11 What are the lessons for investors from the year technology stocks collapse? To evaluate Years 6 and later, when constant growth is expected, the constant growth model is used.

Novell introduces NetWare, its network operating system. Hewlett Packard introduces the Laser Jet printer. Apple unveils the Macintosh.

Charlie Munger On How To Value A Stock

The company runs just one ad, but news and talk shows replay it. The constant growth version takes account of all future cash flows from now Valuation techniques for traditional common stocks 53 to infinity, although this is not apparent from simply looking at the equation itself.


  • The "Mega Sectors" of Tech.
  • Green Light.
  • Defining Sustainability: Special Issue of Land Economics 73:4 (November 1997)!
  • Implications for Investment Analysis.
  • The Ecologic Envoy (Ecolitan Matter).
  • They Stole our Chocolate Factory (French Edition).

PDF This e-book examines a few of the myriads of technical and organizational components that effect prone administration, enterprise administration, hazard administration, and purchaser courting administration, and provides learn to help the profitable implementation of linked supportive applied sciences. Bos PDF Monetary literature can pay loads of realization to the functionality of banks, expressed by way of festival, focus, potency, productiveness and profitability.

Now take a deeper look into each of these metrics. This is the total revenue derived from a platform, divided by the total number of unique users on the specific platform.

The Importance of the Tech Industry

It can be further classified as subscription revenue per user and advertising revenue per user. Cost per click CPC: This is the average cost per click charged to an advertiser for a user clicking on a sponsored advertisement. Cost per mille CPM: This is the average cost per thousand impressions served displayed on an online platform, paid by the advertiser to the owner of a website, regardless of whether the user clicks on the advertisement or not.


  • valuation-of-internet-and-technology-stocks-implications-for-investment-analysis.
  • A Very Simple Muslim’s Guide to Ramadan and Fasting!
  • Apocalypse Second Edition.
  • Books & Videos?
  • Valuation of Internet & Technology Stocks. Implications for - download pdf or read online!
  • Books & Videos!
  • Valuation of Internet & Technology Stocks.

Click through rate CTR: This is the percentage of advertisements displayed on an online platform which were clicked on by users. It is derived from the following formula: This is the average time spent by every user on an online platform. This is derived from a ratio of total time spent on an online platform over a certain period and the average number of users during the same period. These numbers, as relevant, are reported by most internet companies on a periodical basis along with their financials.

Valuation of Internet and Technology Stocks

Hence, an investor must look at these metrics to gauge their impact on the financial performance of a company in order to make well informed investment decisions. Why are we choosing these three companies? Well, Google is by far the most successful online company with its cash machine in the form of its search engine. Facebook is another huge online platform with its billion plus audience and strong monetization improvements over the last few quarters, making it a success compared to most online platforms. Twitter, on the other hand, is relatively small and young compared to the first two, and with the recent slowdown in its user growth, its monetization strategy is under sharp focus.

However, all three of these online companies derive a bulk of their revenues from online advertising, making them comparable.

Valuation of Internet and Technology Stocks

The revenue of these online companies is a direct function of the number of visitors coming to their site, and the money they make per user by advertising to them. Hence, Twitter has a long way to go before it can achieve a similar scale as Facebook or Google. We look at searchers of Google as this is the total addressable advertising market for Google.