Google Looks Very Undervalued Relative To Long Term Growth Opportunities (GOOG)

Google GOOG has been under pressure throughout 2010, falling 22.31% year to date to $481.34. The company's market cap is now $153.13 billion compared to Apple's AAPL $223.32 billion market cap. Both of these companies are benefitting from the explosion of the internet and the mobile device growth across the world. Google (GOOG) should be a tremendous way to play the fast growing internet segment, and has a ton of cash for strategic acquisitions. Furthermore, the stock appears to be priced at a very reasonable valuation. GOOG shares trade at a trailing P/E of 21.82, a forward P/E of 15.06 and a PEG ratio of 0.97. The company had over $26.5 billion in cash and short term investments as of 3/31/2010. That is an incredible amount of money, which provides the company tremendous flexibility going forward. The revenue and earnings trends at GOOG are not being reflected in the share price. When Google's share price hit its all time high in 2007, the company reported revenue of $16.593 billion and net income of $4.203 billion. By fiscal 2009, the GOOG's revenue had risen to $23.650 billion and net income had grown to $6.520 billion, but the share price had come down considerably. Where is the innovation premium in this stock? There is none. This could be a tremendous opportunity for long term investors to own a piece of one of the most innovative companies on the planet at a very reasonable price. You can see more trading ideas at here.