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$91 a piece of Google Share

estimates by PWC

4:12 pm on Jun 29, 2004 (gmt 0)

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..the Mountain View search giant seemed to be estimating its fair market value at $91 a share, according to an analysis of data in its IPO prospectus...

Google has never explicitly stated what its shares are worth. Lefteroff came up with the $91 estimate based on the $75.4 million deferred-compensation charge Google took during the first quarter.

The charge equals the difference between the exercise price of the options the company awarded during the quarter and the fair market value it assumes for the shares. Dividing the charge by the slightly more than 1 million options Google issued during the quarter indicates that Google believed the excess value of the options was $75.

Google issued options with an average exercise price of $16.28 during that quarter. Add the two figures and you get a fair market price of $91.28, says Lefterof


5:35 pm on June 29, 2004 (gmt 0)

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Interesting way to approach this, but You know.... if each one of the pre-ipo shares is exchanged for 10 of the post-ipo shares then things can change. In fact, I think some sort of ammendment to the number of authorized shares will be part of the whole ipo thingy.

I am certain that Google is not aiming for a price per share around $100 as this would limit the number of potential stock holders and turn this into an odd-lot nightmare.

My guess is that the math is going to be worked out to come up with a number closer to $20 than $100.

/just a thought