GOOG Profile

The first profile is for Google (GOOG). First some key values:

Price/Book: 4.49
PE (TTM): 30.90
Price/Sales: 6.06
Price/Cash Flow: 16.12
Free Cash Flow Yield: 4.9%

Quick Ratio: 9.31
Current Ratio: 10.11
Financial Leverage: 1.12
LT Debt to Equity: 0%
Total Debt to Equity: 0%

Return on Assets: 13.0%
Return on Equity: 14.5%
ROIC: 17.1%

Gross Margin: 68.09%
Operating Margin: 32.06%
Net Margin: 19.63%

And now some evaluation of some key points:

Profitability: B+. Google's margins are very solid all the way around.

Financial Condition: A+. Google is about as good as it gets. No debt. No other equity competing with the common. And lots of extra cash.

Value: F. Unfortunately for the value investor, everyone is well aware of the stellar condition of this company. And it is expensive. Google has nowhere near the revenues of other companies in its price class.

Overall, this won't make the portfolio on the index. From the perspective of value, it simply is too expensive to have a great upside. If a big sell off were to send stocks to lower levels, this may make more sense as a safety net. But not now.