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Google’s share price should hit $750, Cramer said Wednesday on Mad Money, maybe even higher.
So there’s still time for investors to cash in on “the Google,” as far as Cramer is concerned. This is a great company with spectacular growth, yet it’s still undervalued by the market.
Actually, the Google [ GOOG 560.00 
-6.40 (-1.13%) ] party might just be getting started, Cramer said. The Google phone should be “gigantic.” YouTube hasn’t even been monetized yet. And there’s a chance GOOG could capture as much as 10% of the $600 billion advertising market.
A company with $60 billion in revenues but still has only a $200 billion market cap is cheap, Cramer said. Plus, Google has room to grow because the internet search/ad giant holds only a fifth of the potential market share Cramer expects.
Investors need to let go of the dot-com-era hangover. Ever since that time, high-priced stocks have seemed illegitimate and unsustainable. But Google is a real company with real earnings that can be valued just like any other stock, Cramer said.
Cramer estimates that Google will earn $20 a share. The company is a consistent 30% a year grower, he said, which puts its multiple at about 37 times earnings. That’s how he came up with his $750 target.
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