UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: TMFBreakerWade Three stars, 500 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 89  
Subject: Re: 1% Baidu Date: 9/2/2008 9:29 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hi there Rich,

Another way to look at it would be to assume that years 10 and on Baidu will grow significantly more than that of inflation. As I'm sure you would agree a precipitous drop from 25% to 3% is a stretch. But for illustrative purposes, I just wanted to give you some feel for the valuation. I would encourage you to plug in your own projected growth rates, adjust your discount rate accordingly, and come up with something that you are more comfortable with.

The point, I don't want folks to get hung up on valuation. Baidu is not and it may never be a stock that a true value guy would consider. (A tough pill to swallow for those who live in IV land, - I know) =).

What I'm trying to get across is that Baidu is a pretty solid play on the greater Chinese economy. We know how Google played out, I would argue that Baidu is well on it's way to surpassing it. And, if that's true, a few percentage points at this stage of the growth cycle really won't matter all that much.

Thanks for reading and the comment,

Wade
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Value Hounds

Kate Spade's Wild Ride
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement