Google Inc (GOOG) Plans to Solidify Position in Navigation

Valuations and Metrics

Google Inc (NASDAQ:GOOG)’s stellar run over the last year or so has left the company trading at a fairly steep valuation, the stock now trading at around 26.5 times trailing earnings. However, the forward P/E is quite reasonable at around 16.6. The price to sales of 5.46 is a little over the industry average, but the operating margin of around 25% is considerably higher. Based on these valuations, investors may want to wait for a pull-back, although they may be left waiting for a while considering the stock’s strong performance.

The Bottom Line

Google Inc (NASDAQ:GOOG)’s plans to acquire Israeli app maker Waze are a clear indication that the internet giant plans to remain dominant in mobile mapping and navigation. While it is as of yet not entirely clear how Google plans to make money with this acquisition, some commentators speculating that it is simply a jab at Facebook, the deal should allow Google to keep growing in one of mobile’s most important areas.

Daniel James has no position in any stocks mentioned. The Motley Fool recommends Apple, Facebook, and Google. The Motley Fool owns shares of Apple, Facebook, and Google. Daniel is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Google Plans to Solidify Position in Navigation originally appeared on Fool.com and is written by Daniel James.

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