Wednesday, September 14, 2005

Goldman Sachs: Baidu.com Fair Value at about $27 Per Share

From Forbes.com: Baidu.com Fair Value Seen At About $27 Per Share

""We are extremely positive on the market opportunity in China and Baidu's commanding leadership position in search, but we cannot justify the valuation," Goldman said. "Our implied fair value is about $27; a more-aggressive scenario suggests about $45." The $45 price target is still 60% below current levels, Goldman noted." "

"The research firm expects Baidu to generate about 35% revenue growth and about 40% earnings-per-share growth from 2006 to 2009 (...) ."

""The most notable risk is the nascent nature of the paid search market in China," the firm said. "With a Chinese search market of less than $200 million in revenue in 2004, the drivers of success remain uncertain.""

Read more:
Quotes on the Baidu (BIDU) IPO
Google's China Situation Better Than You Might Think
China's Baidu Sued for Piracy ahead of IPO
Google Loosing Ground in China

Facts and numbers: Baidu (BIDU) IPO - Fact Sheet

2 Comments:

At 10:22 AM, Anonymous Anonymous said...

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At 11:41 AM, Blogger Mark said...

I've read the GS report thouroughly, and I've written up my own valuation of Baidu here

I don't think traditional metrics apply to Baidu very well. It is more instructive to look at the history of similar companies such as Yahoo and Google. Check out my analysis.

 

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