Is Google Stock a Buy? | Top Stocks to Buy? | GOOG Stock Analysis

Is Google stock a buy? We’ll use our 8 Pillars, Stock Analyzer Tool, and chart reading strategies to perform a GOOG stock analysis and determine whether or not Google is one of the top stocks to buy for value investing or trading.

Welcome back to everything money in this video we will talk about google and the stock price we will use our software to analyze the financials and the fundamentals behind this company and show you how it translates into an exact stock price you should be paying using our software if you’re interested in trading google mo will show you how to use the trending charts

To trade it at a quicker basis but first who are we i am you i represent you as the viewer talking to a couple wealthy guys who manage over a hundred million dollars in businesses real estate and stocks and our goal of the channel is to enlighten and teach you how to gain control of your finances get rid of your financial planner and be a great stock stock trader

And investor for years to come and we will do that now with the help of our amazing software paul i introduce you welcome tell me about why you love google so much thanks guys so first off follow us on instagram we have a new instagram account for everythingmoney and also follow us individually because our moms are really proud of us when our instagram followers

Go up that’s true okay guys so this is our exclusive everything money software let’s go to the eight pillars let’s type in the goog alphabet all right guys so let’s start with our first one so market cap this is about a 1.9 call it a two trillion dollar company yeah very big these days our first pillar we want the five-year pe of the company to be less than 22.5

It’s 54. so it’s expensive now does this mean avoid no guys google is a fast-growing revenue business fast-growing profit i think it’s in the void i mean well mo don’t you think you can just look at a pe sometimes and be like yeah not right now uh of a company of this kind of notoriety yeah you probably can you’re right but remember guys it’s fast growing and

We’re gonna use a stock analyzer tool at the end to show how revenue growth can really increase the value of the company so don’t just jump to conclusion first or else you wouldn’t have jobs true that’s true that’s true we haven’t jumped to conclusion matt right here in the studio so what movie what are you kidding he was born in 1990. right i didn’t hear what

You said the jump to conclusion jumped the conclusion no idea office space you’ve never seen it go ahead and pause okay guys killer number pillar number two is the five-year return on invested capital you want to be greater than nine percent it is twelve point eight percent so that’s a check mark there this means they do a great job of investing the capital

Within the business he was so proud of the map oh remember great and then he finally got in the car accident he tried to commit suicide and then he was able to create the jump to conclusions matt well we’ll show you this keep going all right yeah so we want that overnight we want that over nine percent rare i’ve already moved on from that please do you’re still

Busy giggling guys no dividend being paid by this company but on the main page this is something we’re gonna focus on their their free cash flow so just keep that in mind on the main page pillar number three we want the income growth the revenue growth of the last five years to be positive of course very simple so we go back five years ago 107.6 to 239 check mark

Now really quick if you think there’s a lot of steps we have a shortcut at the end just stay a little bit longer to the end of the video we’ll show you the shortcut in our exclusive software so you don’t have to do any work that’s true that’s nice paul i mean eight pillars is one click away pillar number four profit growth we go to net income 21 billion to 70.6

Massive check there seth look at the look at the growth in the last year they went they doubled their profit in the last year so what from well i online i think online advertising skyrocketed last year because everyone’s trying to create ads because you’re sitting at home doing nothing correct boom wow jesus right so that’s this makes perfect sense so guys what

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I would caution is don’t base everything on last year’s profit because we don’t know how sustainable this is now do i think it’s going to be i don’t know but remember the future of investing is you don’t know the future so you have to be cautious that’s point number four so so far we have one x and three checks i never feel like i’m getting i’m never i never feel

Like i’m getting advertised to on google facebook it’s just like they’re blasting me with those bs i don’t even want but that’s a good point does it real nice i kind of searched something like hey here’s that that’s why i have to pay attention to the add button because i’m looking at going oh that’s an ad like i’ll sit there and say like you know don’t you frown

What was that don’t you where’s he going when you see ad to me i actually now skip those i do really so here’s the stat though guys because i used to do a lot of online advertising 85 of the clicks come in the first three links that’s why google occupies the first three links of every search right so just keep that in mind okay paul so the next pillar is pillar

Number five this is sheriff’s outstanding a confusing uh pillar for some folks go ahead not confusing it’s just misunderstood yes um this is the silent killer of investing guys we want the shares either staying the same or going down now for an expensive company it’s a little bit different but overall guys we don’t want your ceo diluting you as an owner if they

Increase the number of shares outstanding you’re getting you still own the same number of shares but now you’re getting less of the company this is not to be confused with a stock split this is you keep the same member shares and they just increase more shares out there diluting you as an owner okay so we go to the bottom of the income statement on our software

693 million to 665 that’s a check mark nice i will say this though i don’t like it when companies buy back their stock when it’s very expensive you’ve said that yeah so let’s keep that in mind as we go forward pillar number six is total long-term liabilities it involves their debt paul show me how it’s too confusing for dummy like me but you’re you’re very beautiful

Dummy so guys what we want to look at is companies that stay around for long periods of time will make you more money so we want less debt in the company because if a recession hits we want to make sure they can stand to test the time so we go back to our main page of our software we look at our five-year average free cash flow 35 billion i multiply that by a simple

Number five 175 billion dollars we want the total long-term liabilities of the company to be under 175 billion so we go scroll to the top go to the balance sheet school at the bottom total long-term liabilities 41 billion dollars well i would think they’re doing everything right why do they even have debt you’ve said this about facebook pay it off why even have

It i don’t know they’re trying to build their credit paul i give them a 780 credit score all right the last two pillars this is the big majama now free cash flow i like to look at cash flow versus earnings because cash flow is it’s harder to manipulate so we go to the cash flow statement we look at free cash flow now free cash flow is cash from operations less

Your capital expenditures on our exclusive software we are the only ones that add this line to the cash flow statement that gives you the free cash flow number we go back five years ago 24.28 65.66 check mark guys free cash flow is important because you can use it to do five things buy back shares pay dividends pay down debt make acquisitions or reinvest back in

Your own business this gives them as it’s growing and growing it’s showing you that this company has better and better ability to make the company better overall because all five of those things can do good things for investors as long as it’s done properly so check mark there and then our final metric we want to come up with the value of the company now remember

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Guys this is a starting point we pick a generic number of 20. that’s it we’re not trying to overcomplicate it faster growing companies should get a higher number slower growing companies should be at a lower number multiple 20 pounds correct multiple 20. so we take the five-year average free cash flow multiply by 20 and that’s 700 billion dollars versus the 1.95

Trillion mass effects but again the stock analyzer tool which we’ll go over in a few seconds will tell us if that’s a reasonable price or not but like i said before guys if you just sit there and you’re lazy like me and you don’t want to do all that work look at this eight pillar tab just does it all for you and guess what guys the two metrics that have a they

Have an x are the value metrics pe and and basically market cap so this immediately tells me guys i love this company pay attention to it keep track of it until for when it falls and these become check marks and you can look at it yeah when the stock goes down the market cap goes down yet all the other numbers are great that’s when the time to buy right because

These will not be affected by by these do not get affected by the um by the stock market the stock’s price if you’re interested in getting all this data behind paul he will show you how to grab it right now paul tell us about this software boom so guys we created the software for this exact reason of our users said to us hey instead of us waiting for your youtube

Videos to come out on stocks we don’t care about how do we analyze our own stocks on our own of stocks you care about so we created the software for hundreds of thousands it includes everything you saw here most importantly it’s on a mobile app it will fit on your phone the app is there it does all this on the app two you get exclusive daily content we post two

Or three videos a day only for people who subscribe to the software three get access to seth moe and i four you get a community of over six thousand people you can talk to on a minute by minute basis about all your investment ideas and get their opinions because we realize how lonely it can be out there when you have these views but nobody nobody in your community

Does nobody and your friends do yeah everybody here is around the world and it’s growing every single day so you can do that this is all available for only 90 cents per day if you just increase your returns from the software by one or two percent a year it will yield to hundreds of thousands if not millions of dollars in your returns all for 90 cents a day this

Is a no-brainer so if you’re serious about your investing 90 cents a day changes everything for you and we haven’t even gotten to the best part yet the stock analyzer tool guys remember every investment is the present value of future cash flows and we don’t know the future you have to make assumptions based on that that’s what this tool does for you so we first

Start let’s do a number of years of analysis on big companies that are i think are going to be around for a long time i do 10 years one two or three assumptions i’m gonna pick two it’ll give us our numbers here our historical numbers and then we make assumptions so first off revenue growth i’m going to go with eight and then 12 revenue growth that’s so much lower

It is but google’s a very large company and your job is to be conservative and by companies that are no brainers even at their current price ah so now change if you want to change that to some other number fine but i’m just telling you the way i like to invest is to assume lower numbers yeah i guess what you’re saying is let’s not let these last couple years lol

Us to sleep and not look at the past where growth growth growth was a little much slower you know okay keep going share change um we’ll keep the same and buy back 1.5 percent profit margin uh we’ll go 21 and 23 free cash flow margin we’ll do 21 and 23. pe guys for big companies i like to do 14 and 16. big companies are established and have a big mo google has

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A big moat we don’t say hey yahoo it actually mo always says ask jeeves yes i still use ask jeeves is that still around i have no idea let’s find out so desired annual return guys you can get 10 percent by buying an etf and holding it for 30 years so to buy an individual stock you want a better return i always put in 12 and a half percent still around we hit

The analyze and by the way make note have we mentioned the stock price once so far what is it again 2900 oh that’s it hit the analyze button oh not bad not as bad as i thought it was going to be i agree low end 13 high end 2400 so this just says the stock is overpriced so it’s probably somewhere in the middle if i’m reasonable around 2 000 a share does that seem

Like a big drop from here guys you’d be surprised how fast stocks fall just go look at this look at any company and see how much it can drop 30 any given time so i look at this is a great way to tell you now guess what let’s go change those assumptions just slightly to the more aggressive numbers very aggressive it makes it it makes more sense in the high level

That’s what it is it’s about making these assumptions but if you don’t care about the numbers and the fundamentals you just want to trade the stock mo are people really trading a 3 000 stock i don’t think so no it’s not something that people go on in swing trade but what you can do is take it on a long term perspective and let’s just let’s just go from this was

Covered back back in this time frame you could have caught this run right here you could have caught this slight run right here but more importantly let’s look at what you can do with it right now right now it it was trending down it dipped into a downtrend and then it popped right back up after earnings so they had some kind of incredible earnings and now they’re

Going toward those all-time highs again so if i was you if you want to use stops i would go ahead and if this can break out and make a brand new all-time high you can take a position in it but please make sure that you’re using stops that’s going to protect your downside risk because any time that you’re over 80 on the stochastic there’s a higher probability that

It turns into a downtrend because it doesn’t have as much room to run to the top side so if this interests you please sign up for the bid and ask nation get all of the trading 101 series with me join the employed trader series with me we’ve trade stocks like this in the employed trader series and it it’s a great value for what you get for and you can trade stocks

That are five dollars and not three thousand dollars that way and it doesn’t care at all about fundamentals so the fundamentals make don’t appeal to you go to the church i’ll tell you right now we’re trading fuel cell right now that’s one of the trades that we’re making right now you think i would ever invest in a company like fuel cell i don’t even know if you’ll

Sell it did you hear him conjugate if i was you did he say if i was you you did if i would if i was you if i was you moving on i can’t get over that i never said english was my strong story that’s true but trading is um if that resonates with you you can join mo in the morning every 9 a.m for news trading analysis and sarcasm paul final take this company’s i’m

Just waiting waiting patiently waiting making my list making your list and checking it twice that’s our take on google final thumbs up watch more videos to see on the next one thanks

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Is Google Stock a Buy? | Top Stocks to Buy? | GOOG Stock Analysis By Everything Money