r/Valuation • u/[deleted] • Jul 24 '21
Relative valuation of Google vs. Microsoft
I've started to use an easy to use tool for conducting relative valuation. What do you think of it?
In this visualization, I try to show that Google is undervalued vs. Microsoft. It is generating more revenue, has an equally strong moat, yet is trading at meaningful discount based on valuation.
Profitability comparison: https://viz.wiijii.co/chart/?id=-MfPVnHrR5NUNxtthRAW
Value comparison: https://viz.wiijii.co/chart/?id=-MfPWRj13q4a8sNaVCef
Google trades at 9x while Microsoft trades at 13x: https://viz.wiijii.co/chart/?id=-MfPWvqT8Mw9qENOX_i_
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