Financial Evaluation of the Companies: Google, Yahoo! and Baidu

FINANCIAL EVALUATION OF THE COMPANIES:

GOOGLE, YAHOO! AND BAIDU

Seminar Paper

TABLE OF CONTENTS

1. INTRODUCTION 3

1.1 Paper Goals and Objectives 3

1.2 Methodology 3

2 COMPANIES BACKGROUND 4

2.1 Yahoo! INC. 4

2.2 Google INC. 4

2.3 Baidu, INC. 6

3. CURRENT SITUATION 7

3.1 Profitability Ratios 7

3.2 Activity ratios 10

3.3 Liquidity ratios 11

3.4 Equity Ratios 12

3.5 Leverage ratios 14

4. FUTURE PERSPECTIVES 15

4.1. Google 15

4.2 Yahoo! 16

4.3 Baidu 17

4.4 Additional parameters 18

CONCLUSION 19

1. INTRODUCTION

In modern times the main fast-growing and profitable companies are the companies that are guided by new technologies. One of such spheres is Internet and such search engines as Google, Yahoo!, and Baidu. The companies are listed and present a good opportunity to invest. Nevertheless, before investing in the exact company it is important to consider a lot of issues. First of all, the backgrounds of the companies should be considered, after that the current situations which are reflected by such parameters as financial ratios should be taken into consideration. After analyzing future predictions and calculating the real company value and real share price of the companies, it is possible to get a clearer picture for investors and other interested parties.

1.1 Paper Goals and Objectives

This work focuses on the points related to financial analysis. The goal of this paper is to analyze the companies and suggest future perspectives of the companies to invest and try to predict future position of the shares in the market. The objective of the following work is to afford the reader with information that can be useful for having more clear idea about the companies’ situation and understanding of the future development of the companies.

1.2 Methodology

The findings of this paper are based on secondary research. The main sources of the following