29 Oct How Extremely Undervalued Googles Stock is Compared to Yahoo

As many of you may know I am a huge fan of Google as an investment. One of the main reasons is because even after going up 45% over the last 12 months, the company remains extremely undervalued compared to Yahoo.com and other players in the tech industry.
For instance lets look at the 2 companies side by side:
Google’s P/E Ratio (Price per share / Earners per share) is 53.Yahoo’s P/E Ratio (Price per share / Earners per share) is 62.
Google’s Future 2008 P/E Ratio (Price per share / Earners per share) is 32Yahoo’s Future 2008 P/E Ratio (Price per share / Earners per share) is 48
Google’s Year over Year (2006 vs 2005) Gross Profit growth is 79%Yahoo’s Year over Year (2006 vs 2005) Gross Profit growth is 18%
Now who in their right mind would buy into Yahoo’s stock (YHOO) over Google’s stock (GOOG)? Why buy a stock like Yahoo that has a PE ratio 9 points higher, has a projected PE ratio for next year 16 points higher than Google, has pretty much stagnated in terms of growth, and has all sorts of managerial problems over Google who dominates Yahoo in both present and future PE, has an extremly motivated and capable management team, has blown out growth figures over the last 3 years (has grown in terms of gross profit over 4 times faster then Yahoo Last year), and has an entire pipeline of products and innovations ready to launch at any minute?
Either Yahoo’s stock price is extremely overrated, or Google’s in extremely underrated. Being that companies like Amazon and Baidu have PE ratios 2-3 times that of Google, I am willing to bet quite a large sum of money that Google’s share price in greatly undervalue, and am bold enough to predict a $1000 share price by the end of 2008 or beginng on 2009.
There is very little risk to Googles core earnings, and a ton of upside with the expected announcement of a move into the mobile industry. Google is as close as you can get to a sure stock bet as any company can get.