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Is Google a Value Stock?

Following Wednesday's nasty sell-off, Cramer wanted to talk about a relative value stock: Google.

Although the technology company's stock trades at roughly $500, Cramer said it is a cheap stock. And the stock has been trading horribly, as of late, especially since the Internet giant reported a disappointing quarter last week. The stock now looks a whole lot more cheaper after Russian search engine Yandex went public last week.

After its IPO, Yandex's stock shot up 55 percent in its first day of trading to nearly $39, although the stock has pulled back to roughly $32 a share. When you look at Google through the prism of Yandex, Cramer said it looks like a relative bargain.

Assuming Yandex can grow at a 40 percent clip this year, then it's selling for roughly 60 times this year's earnings estimates. Meanwhile, Cramer said Google can grow earnings at a 17.8 percent pace and it sells at 15.6 times this year's numbers. Yandex is growing faster than Google, but even when that's factored in, Yandex trades at about 1.5 times its growth rate while good is trading at less than 1 times growth. That's cheap by anyone's standards, Cramer exclaimed.

"But when you consider how much people are willing to pay for the Russian Google, it seems ridiculous that the real Google isn’t worth more or Yandex isn't worth dramatically less, especially when it doesn’t take a rocket scientist to figure out that Google’s the superior company," Cramer said.

People seem to be concerned Google missed the social media trend and are unnerved by the youth of CEO Larry Page. But Cramer said these negatives obscure some nice positives, like how its revenue is accelerating 32 percent year-over-year. It's also hiring more people and their employees are making them more money. Not only is Google the go-to place for Internet search, it's also a major beneficiary of advertising dollars migrating from traditional media to the Web.

Bottom line: Given the valuations Yandex has traded at since its IPO, Cramer thinks investors should consider Google a cheap stock.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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