Thursday, January 05, 2006

$22,000,000 per employee

Yesterday Piper Jaffray rose its price target for Google to $600, reminding me of Henry Blodget's famous recommendation in the dot-com frenzy days. At today's close of $445.24, Google's market cap is about $131.6B, with an enterprise value of about $121.0B.

Divide that by 5,500 employees (5,000 as of September 30, 2005 - the rest is just a guess), and you get $22M for every employee. Not bad! I'm wondering if any public company ever achieved a higher value per employee. Does this mean that Google is overvalued? No. Maybe it is, maybe it's not - I don't know.

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