Is Google Growing Faster Than Apple?

Steve Hassett submits:Real Implied Growth Rate (RIGR) reveals market expectations for long-term earnings growth implied in an individual firm’s stock price. Comparing RIGR for a single firm to the overall market and its industry can help investors identify over and undervalued firms and sectors. This analysis reveals dismal growth expectations for Microsoft (Nasdaq:

The S&P 500 (SPY) Index is approaching a record high, up by 5.1% this year and 19.2% since start of 2012, yet the Risk Premium Factor (RPF) Valuation Model shows that the index is still undervalued by about 7%.

The Dow hits a record high, yet the Risk Premium Factor (RPF) Valuation Model shows that the broader market based on S&P 500 (SPY) is still undervalued by about 5%.

The S&P 500 Index is up by 2.7% in April, 11.5% for 2012 and 27% since September 2011, yet the Risk Premium Factor (RPF) Valuation Model shows that the index is still undervalued by more than 15%.

By Steve Hassett: The Risk Premium Factor Valuation Model is a simple approach for understanding the intrinsic value of the market. The model shows that two factors drive the market, earnings and interest rates, which drive cost of capital and embody inflation. And for individual companies, a third factor: growth.

By Steve Hassett:The Risk Premium Factor Valuation Model is a simple approach for understanding the intrinsic value of the market. The model shows that two factors drive the market, earnings and interest rates, which drive cost of capital and embody inflation. And for individual companies, a third factor: growth.

Steve Hassett submits:The Risk Premium Factor Model (RPF Model) can help understand S&P Valuation to identify bubbles and opportunities.

Despite a big week with the S&P 500 Index up by more than 3.7% and 13.5% for the month of October, the Risk Premium Factor (RPF) Valuation Model shows that the index is still undervalued by more than 20%.