Thursday, November 1, 2012

BIDU's valuation using DCF, with ttm EPS 4.38, and growth rate of 30% for the next 5 years, BIDU will worth $129;for next five years and stock is worth 129 and you are a buyer at 110?

if you calculate the BIDU's valuation using DCF, with ttm EPS 4.38, and growth rate of 30% for the next 5 years, BIDU will worth $129. Considering the middle class population growth in China as well as their buying powers, BIDU's growth still last for a pretty long time.

Technically speaking, BIDU's price has a strong support at $108. I really doubt price will drop another 10%.
31 Oct, 05:07 PMReplyLike0

  • You just outlined a fundamental value reason to short and somehow concluded being long is better. 30% growth assumption for next five years and stock is worth 129 and you are a buyer at 110?
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