Baidu Valuation

Video summary here:

Baidu ($BIDU) is one of the companies that I have been following in the last 6 months and I think they are showing a lot of potential. Their price has been extremely volatile:

1 Jan: $216

Mid-Feb: $355

25 March: $174

Now: ~$205

It's hard to put your finger on what's the real price so I have analysed the stocks using 3 different models and collated the findings:

Finbox's 5YR Gordon Growth model (discount rate 10.8% to 11.8%): $298 to $348 with best estimation being $320

10YR Discounted Cash Flow model (discount rate 8.3%): $307

EPS Growth model (discount rate 8%): $277

I personally feel that $320 is a good target price for Baidu, especially given the fact that has hit $355 already! Analysts have a similar consensus at around $310, but to that I say that Baidu has beaten 17 out of the last 18 analyst earning estimates so I'd say that they tend to outperform.

What do you think?