The pricing exercise looks at 1, 5 and 10 year for

net income growth rate
revenue growth rate
EPS growth rate
Return on investment
Return on assets
Return on equity

Most of these numbers are available for free at moneycentral.msn.com. As I don't subscribe to any data services I had to scrape the data off web pages myself.

You then take the averages of some of those numbers and use them to guesstimate the future share price in say 10 years. The obviouus assumption is they will keep up this average performance for the next 10 years. Then you discount that FSP to arrive at a price for today and compare it to the current share price.

I used a discount rate of 15% per year after calculating the FSP.

However, if you use a different discount rate than I, but apply the same discount rate to Apple and Googe, Google will still look relatively undervalued compared to Apple.

It was during this exercise that I noticed Google seems to have slowed down quite rapidly in the last few years in terms of growth rates.