Analysts expect Baidu's market value to reach 13 billion US dollars

by idiglog on 2006-10-24 10:04:14

Optimistically: If the Chinese economy continues to grow, Baidu's annual revenue increase could remain between 100% and 150% for the next two years. By the third quarter of 2008, Baidu’s annual revenue would reach around $700 million. Assuming Baidu's market capitalization ratio to sales remains at 13 times, the company’s market value would reach $9 billion. However, if Baidu maintains an annual revenue growth of over 100% for the next two years, its market capitalization ratio to sales might be even higher. Currently, Google's market capitalization ratio to sales is 13 times, while Baidu's is 24 times. Taking the average value of 18 times, Baidu’s market capitalization in the third quarter of 2008 would reach $13 billion.