GOOGLE INC.

NDQ-GOOG
TIMELINESS SAFETY TECHNICAL

RECENT PRICE

19.9 Median: RATIO P/E RATIO YLD 542.66 P/E 18.3(Trailing:NMF) RELATIVE 1.06 DIVD
201.6 85.0 446.2 172.6 513.0 331.5 747.2 437.0 697.4 247.3 626.0 282.8 630.8 433.6 643.0 519.0

Nil

VALUE LINE
Target Price Range 2014 2015 2016
2500

3 2 4

Lowered 5/7/10 Raised 11/20/09 Lowered 5/13/11

LEGENDS 25.0 x Cash Flow p sh . . . . Relative Price Strength Options: Yes Shaded areas indicate recessions

High: Low:

BETA .90 (1.00 = Market)

Annl Total Price Gain Return High 1440 (+165%) 28% Low 1065 (+95%) 18% Insider Decisions
to Buy Options to Sell J 0 3 7 J 0 3 7 A 0 3 6 S 0 4 8 O 0 3 9 N 0 3 9 D 0 4 9 J 0 3 6 F 0 3 8

2014-16 PROJECTIONS

1250 800 600 500 400 300 250 200 150

Institutional Decisions
2Q2010 3Q2010 4Q2010 583 646 681 to Buy to Sell 574 492 533 Hlds(000) 191646 192631 197898

% TOT. RETURN 4/11

Percent shares traded 150 100 50
THIS STOCK VL ARITH.* INDEX

1 yr. 3 yr. 5 yr.

3.5 -5.3 30.2

20.7 45.9 48.2

Google Inc. undertook its initial public of- 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 fering on August 19, 2004, selling approxi-1.87 6.24 11.50 20.65 34.32 52.97 69.17 74.43 91.26 107.70 121.20 mately 19.6 million shares of its Class A -.50 .64 1.93 5.97 11.12 16.00 20.66 24.42 29.79 33.90 38.45 Common stock for $85 a share. Of the total -.45 .41 1.49 5.20 9.50 13.29 16.69 20.41 26.31 30.00 34.00 shares, the company sold 14.1 million, and ----------Nil Nil selling stockholders sold 5.5 million. The -.16 .75 1.15 2.82 6.16 7.67 7.48 2.55 12.51 10.95 12.10 lead underwriters of the offering were -.53 2.30 10.56 31.69 55.15 72.43 89.61 113.30 143.92 160.00 169.70 Morgan Stanley and Credit Suisse First - - 235.00 235.00 277.35 297.24 309.00 313.28 315.11 317.77 321.30 325.00 330.00 Boston. ---NMF NMF 43.4 40.7 27.6 21.5 20.3 Bold figures are
CAPITAL STRUCTURE as of 3/31/11 Total Debt $3216.0 mill. Due in 5 Yrs. 3216.0 mill. LT Debt None LT Interest None Leases, Uncapitalized: Annual rentals $310 mill. Pension Liability None Pfd Stock None Common Stock 321,522,105 shares (250,869,074 Class A shares and 70,653,031 Class B shares) C D as of 1/31/11 MARKET CAP: $174 billion (Large Cap) CURRENT POSITION 2009 2010 3/31/11 ($MILL.) Cash Assets 24484.8 34975.0 36675.0 Receivables 3178.5 4252.0 4216.0 Inventory ---Other 1503.7 2335.0 2419.0 Current Assets 29167.0 41562.0 43310.0 Accts Payable 215.9 483.0 516.0 Debt Due - - 3465.0 3216.0 Other 2531.6 6048.0 5100.0 Current Liab. 2747.5 9996.0 8832.0 ANNUAL RATES Past of change (per sh) 10 Yrs. Revenues -Cash Flow -Earnings -Dividends -Book Value -Calendar Past Estd 08-10 5 Yrs. to 14-16 43.5% 12.5% 54.5% 14.0% 55.0% 15.5% -Nil 51.0% 10.0%

VALUE LINE PUB. LLC

14-16
159.40 55.50 50.00 Nil 14.50 202.90 345.00 25.0 1.65 Nil 55000 42.0% 1800 17350 25.0% 31.5% 50000 Nil 70000 25.0% 25.0% 25.0% Nil

----------------

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NMF --

NMF --

2.34 --

2.16 --

1.66 --

1.43 --

1.29 --

Value Line estimates

Revenues per sh Cash Flow per sh Earnings per sh A Divds Decld per sh Capl Spending per sh Book Value per sh Common Shs Outstg B Avg Annl P/E Ratio Relative P/E Ratio Avg Annl Divd Yield Revenues ($mill) Operating Margin Depreciation ($mill) Net Profit ($mill) Income Tax Rate Net Profit Margin Working Capl ($mill) Long-Term Debt ($mill) Shr. Equity ($mill) Return on Total Capl Return on Shr. Equity Retained to Com Eq All Divds to Net Prof

439.5 1465.9 3189.2 6138.6 10605 16594 21796 51.4% 42.0% 39.1% 38.5% 38.1% 35.5% 36.0% 17.8 43.9 128.5 256.8 494.4 807.7 1212.2 99.7 105.6 405.9 1518.4 2940.7 4203.7 5299.3 46.1% 69.5% 52.3% 32.0% 26.7% 25.9% 9.5% 22.7% 7.2% 12.7% 24.7% 27.7% 25.3% 24.3% 142.3 324.7 2353.1 8255.7 11735 15254 17876 6.5 2.0 -----187.8 602.6 2929.1 9419.0 17040 22690 28239 51.7% 17.6% 13.9% 16.1% 17.3% 18.5% 18.8% 53.1% 17.5% 13.9% 16.1% 17.3% 18.5% 18.8% 79.5% 19.6% 13.9% 16.1% 17.3% 18.5% 18.8% --------

23651 29321 40.4% 39.0% 1240.0 1067.0 6520.4 8505.0 22.2% 21.2% 27.6% 29.0% 26420 31566 --36004 46241 18.1% 18.4% 18.1% 18.4% 18.1% 18.4% ---

35000 38.0% 1200 9810 20.0% 28.0% 38000 Nil 52000 19.0% 19.0% 19.0% Nil

40000 38.0% 1400 11290 25.0% 28.2% 42000 Nil 56000 20.0% 20.0% 20.0% Nil

BUSINESS: Google Inc. operates the worlds leading Internet search engine. The company primarily derives revenues through delivering targeted advertising. Revenues are also derived from the licensing of search technology and solutions to enterprises. Revenues in 2010: United States, 48%; international, 52%. Has 24,400 employees. Officers & directors own less than 1% of Class A com-

mon stock, 94.1% of Class B; Fidelity, 6.8% of Class A; BlackRock, 5.2% of Class A (4/11 Proxy). Executive Chairman: Dr. Eric Schmidt. Co-founder & Chief Executive Officer: Larry Page. Cofounder: Sergey Brin. Incorporated: Delaware. Address: 1600 Amphitheatre Parkway, Mountain View, California 94043. Telephone: 650-253-0000. Internet: www.google.com.

QUARTERLY REVENUES ($ mill.) Full Mar.31 Jun. 30 Sep. 30 Dec. 31 Year 2008 5186 5367 5542 5701 21796 2009 5509 5523 5945 6674 23651 2010 6775 6820 7286 8440 29321 2011 8575 8500 8800 9125 35000 2012 9500 9800 10200 10500 40000 EARNINGS PER SHARE A CalFull endar Mar.31 Jun. 30 Sep. 30 Dec. 31 Year 2008 4.12 3.92 4.24 4.41 16.69 2009 4.49 4.66 5.13 6.13 20.41 2010 6.06 5.71 6.72 7.82 26.31 2011 7.04 7.00 7.75 8.21 30.00 2012 7.90 8.40 8.60 9.10 34.00 QUARTERLY DIVIDENDS PAID CalFull endar Mar.31 Jun.30 Sep.30 Dec.31 Year 2007 2008 NO CASH DIVIDENDS 2009 BEING PAID 2010 2011
(A) Diluted earnings per share. Excludes nonrecurring gains/(losses): 04, (3); 05, (18); 06, 44; 08, ($3.38). Next earnings report due mid-July.

Shares of Google have traded somewhat lower over the past three months. The company posted solid results for the first quarter, though share net came in below our forecast. This was partly due to an increase in salaries paid, as Google has stepped up hiring in recent periods and initiated a 10% raise in order to retain talent. The company plans to add more than 6,000 employees in the current year. Many of these employees will be working in areas with attractive growth potential. This may well prove to be a farsighted strategic move in the coming years. In the near term, though, the upfront costs (which include higher salaries) will probably be a drag on the bottom line. Healthy results will likely continue in the coming quarters. We look for impressive growth in the companys core operations, and revenue-generating clicks should continue to advance at a good clip going forward. Both owned and partner sites will probably continue to generate strong top-line growth. The company appears well positioned in its markets for the long haul.

Googles core businesses should further benefit from such trends as increasing worldwide Internet usage and the growing popularity of online advertising. In addition, the companys newer businesses ought to be important growth drivers. The Google Display Network should continue to post strong growth in its key markets. Moreover, YouTube appears to be benefiting from a virtuous circle. The company shares YouTubes rapidly growing revenue with over 20,000 content partners. The more money this business makes for the partners, the more content they upload, which, in turn, further benefits YouTube. Elsewhere, the mobile advertising business appears to be taking off. We expect significant growth in mobile search queries in the years to come, as a greater number of people use smartphones to access the Internet. This stock is neutrally ranked for Timeliness. We anticipate healthy growth in revenues and share earnings over the pull to 2014-2016. From the present quotation, this issue has strong appreciation potential for the coming years. Michael Napoli, CFA May 20, 2011
Companys Financial Strength Stocks Price Stability Price Growth Persistence Earnings Predictability A++ 70 90 60

(B) In millions. (D) All preferred stock converted to Class B (C) Class A common stock entitled to one vote common stock upon initial public offering. per share. Class B common stock entitled to ten votes per share.

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