tag:blogger.com,1999:blog-8152901575140311047.post5192955122490804571..comments2024-03-29T07:41:47.433-04:00Comments on Musings on Markets: Growth (Part 3): The Value of GrowthAswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-8152901575140311047.post-34093764670915582012014-02-28T16:38:28.913-05:002014-02-28T16:38:28.913-05:00Can't agree more .. great post as usual. I was...Can't agree more .. great post as usual. I was curious as to how Google has been doing since 2010 and did some number crunching ( you can view my analysis here : http://bit.ly/1mL9c9r). As expected the trend of declining returns ( marginal as well as overall ROC) continued through 2013. What I am not 100% sure though is the impact of timing on returns. Sometimes it takes a while for an investment (e.g. Youtube) to start contributing to the bottomline. But looking at the numbers, it is clear that Google has been making some inefficient capital allocation off late.Hemanth Mandahttps://www.blogger.com/profile/06898007078875416663noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-3374760909613334772013-02-11T02:49:03.472-05:002013-02-11T02:49:03.472-05:00the special rule hinder the ability of the special...the special rule hinder the ability of the special rule to meet its purpose or cause a greater detriment to the jurisdiction than would occur in absence of the special rule <a href="http://www.njtaxpreparation.net/" rel="nofollow">matawan income tax services</a><br />Anonymoushttps://www.blogger.com/profile/09988824537426226265noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-39314631937781767902012-06-05T21:02:27.147-04:002012-06-05T21:02:27.147-04:00Dr. Damodaran,
In your spreadsheet titled "g...Dr. Damodaran,<br /><br />In your spreadsheet titled "growth breakdown" can you explain the calculation behind cell B24 (valued added by future growth). <br /><br />Can you explain the underlying logic in more detail. This cell has more involved calculations than your explanation in the article. <br /><br />I really appreciate your work. <br /><br />Thank you.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-67684573272595338242011-10-30T15:41:02.190-04:002011-10-30T15:41:02.190-04:00Google's numbers are going down in the near fu...Google's numbers are going down in the near future. There's no question of that. It's gonna be same for Microsoft and Nokia. And probably for Apple too. The reason is smartphones. These companies are fighting hard for market shares and survival right now. Apple has published some numbers and they are investing insane amount of dollars in this game. One billion is not that much in this big boys game. Google also needs more patents and they are not gonna be cheap either.Paulahttps://www.blogger.com/profile/06324177080879607813noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-64488753215732102572011-10-30T12:46:08.488-04:002011-10-30T12:46:08.488-04:00Unless its increasing pricing power, it should alr...Unless its increasing pricing power, it should already be embedded in the growth rate. If you have increased pricing power, I think of it still as efficiency growth, because you are deriving it on existing assets.Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-42680262283185199222011-10-30T11:33:26.662-04:002011-10-30T11:33:26.662-04:00Under efficiency growth, you missed the point of &...Under efficiency growth, you missed the point of "pricing power". Volume may remain same, unit selling price increasing... hence the growth. <br />And if its a niche product, the growth can stay much longer than 4-5 years.Fundoo_Pupilhttps://www.blogger.com/profile/01128565386470249700noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-26267532879323950952011-10-30T11:30:42.791-04:002011-10-30T11:30:42.791-04:00This comment has been removed by the author.Fundoo_Pupilhttps://www.blogger.com/profile/01128565386470249700noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-90652765845053386062011-10-28T13:26:03.154-04:002011-10-28T13:26:03.154-04:00Any time you use one year numbers, you will be exp...Any time you use one year numbers, you will be exposed to this issue. It is possible that the drop off you have seen in the last 2 years is more a function of the economy but let's see.... If you see Google announce more acquisitions, I think you will have your answer sooner than you think.Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-76243615525264338852011-10-28T13:19:47.678-04:002011-10-28T13:19:47.678-04:00It looks like a flaw in your analysis is that you ...It looks like a flaw in your analysis is that you aren't accounting for any economic or cyclical factors in 2009. It wasn't exactly a period of run-of-the-mill slowdown. The global financial crisis of course impact corporate incremental returns. <br /><br />A metric that would be value is how Google fared with regard to incremental operating profits relative to those of the market.<br /><br />CJ<br />http://crackerjackfinance.com/CJFhttps://www.blogger.com/profile/02967533011091824814noreply@blogger.com