How does one come to a fair market value for Google stock?

This stock went up 17% today, but the EPS was only up 7% from expectations by the marketplace!? Am I missing something?

Hope the buyers are smart enough to take some off the table tomorrow!

No, your not missing anything. Stock or commodity prices are driven by speculation a lot of times. Not the real value of the company. I don't think the company ever sees a penny from what is paid for their stock beyond what they got in the IPO, unless they speculate in their own stock.
They are supposed to offer a finite number of shares in the company. The company holds some, then the rest is traded back and forth by the other stockholders. The company gets zip on these transactions.
So, a lot of times the shareholders make their profits by selling to others, not on what the company makes but on expected value of the shares to be sold. In other words sell it to another sucker!!!!
Right now I have been reading stories that Microsoft is wanting to buy it out and Google doesn't want to belong to Microsoft. At this time that is what is really driving the price I believe.

This is all opinion you see, as I just watch the news about this stuff. I don't speculate in the Markets. I want to keep my shirt. As every time I have tried, the Market does the opposite of what I hope. Oh well, thanks for letting me rant at least.

Look at the middle of it's historic prices, on yahoo for instance.

Perhaps you'll be willing to help in that effort? Are you writing the check now?

Ask Geeves

I base it on what investors were willing to pay for it in the past using the balance sheet. That would put investor valuation at $660, making Google a great buy now.

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