The management and Directors of the Google have stated that there is no plan for the Google to ever pay dividends. Yet, the stock trades at a extremely high price in dollar terms (around $490 per share at present) and at a P/E of around 20.
Based upon the valuation concepts discussed in text, how can such values be justified by the investors (investors should have done that because they’re the value placed on Google shares by folks actually buying and selling the shares)?
How accurate can that justification be? What factors are likely cause errors in the valuing Google stock?