Analyst Says this is the Most Undervalued Internet Company
Author By Sophia VidaPosted on According to one analyst, it’s Alphabet that is the most undervalued out of all of the big internet companies.
MKM Partners analyst Rob Sanderson believes that Alphabet has the “most hidden value” of all the mega-cap companies currently.
He wrote in a note to investors that the company could be poised for a large capital returns program and that the recently passed tax reform may free up $1 billion of the company’s off-shore cash.
Sanderson says that Alphabet has the most off-shore cash of all of the major internet companies.
He thinks Google’s Websites revenue has remarkable growth and has grown 20% over the last two years.
He wrote, “We think GOOGL has the most unrecognized value of the mega-caps and that additional disclosure could lead to revaluation. We also think that capital reallocation ($107Bn in cash) could be a catalyst for value creation.”
Disclaimer: We have no position in Alphabet Inc Class A (NASDAQ: GOOGL) and have not been compensated for this article.
