
Wednesday September 29, 2004
Indeed, Google shares now are at heady prices, trading at a whopping 55 times next year's expected earnings of $2.29 per share, compared with a price-to-earnings multiple of 15 for the Standard & Poor's 500-stock index. And part of the reason the shares are rallying is that Google has fewer shares that are freely available to trade, compared with comparable companies, so buying interest goes a lot further in pushing the stock higher. Google has a "float" of almost 30 million shares, compared with more than one billion shares of Yahoo that trade freely.