GOOG Fair Value Estimate
$487.7543.7% undervalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Alphabet Inc - Class C
Exchange: NASDAQ
Google Inc. (Google) is a global technology company. The Company's business is primarily focused around key areas, such as search, advertising, operating systems and platforms, enterprise and hardware products. The Company generates revenue primarily by delivering online advertising. The Company also generates revenues from Motorola by selling hardware products. The Company provides its products and services in more than 100 languages and in more than 50 countries, regions, and territories. Effective May 16, 2014, Google Inc acquired Quest Visual Inc. Effective May 20, 2014, Google Inc acquired Enterproid Inc, doing business as Divide. In June 2014, Google Inc acquired mDialog Corp. Effective June 25, 2014, Google Inc acquired Appurify Inc, a San Francisco-based developer of mobile bugging application software.
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Earnings per share grew at a 25.2% CAGR.
Current Price
$339.32
+2.12%GoodMoat Value
$487.75
43.7% undervaluedProfile
Valuation (TTM)
Market Cap$4.09T
P/E30.98
EV$3.58T
P/B9.86
Shares Out12.07B
P/Sales10.16
Revenue$402.84B
EV/EBITDA22.29
Alphabet Inc - Class C (GOOG) Valuation
GoodMoat Analysis
The current price of $289.59 represents a significant discount to the GoodMoat Target of $487.75, implying a margin of safety of approximately 41%. This margin falls within the framework's 'Deeply Undervalued' band (>40%), suggesting a favourable valuation setup for a value investor.
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Based on the provided data, Alphabet's valuation appears highly favourable. The GoodMoat Target of $487.75 suggests an intrinsic value nearly 68% higher than the current price of $289.59. This translates to a margin of safety of approximately 41%, which, according to the GoodMoat Investment Framework, qualifies as 'Deeply Undervalued' (MoS > 40%). This substantial discount provides a wide buffer for an investor. While key valuation multiples like P/E and FCF Yield are not provided in the current data, the 18.0% YoY revenue growth indicates the company is expanding at a healthy pace, which should support future cash flows. For a business of Alphabet's scale and quality, a margin of safety this wide is a compelling starting point for analysis, though a complete assessment would require confirming the underlying moat and quality scores as per the framework's sequential gates. The primary valuation conclusion from the DCF-derived target is strongly positive. Analysis based on data as of 2024-05-15.
GOOG Valuation Metrics
FCF$73.27B
FCF Growth Rate15.43%
EPS Growth (CAGR)25.18%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →GOOG Valuation & Fair Value Analysis
Alphabet Inc - Class C (GOOG) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Alphabet Inc - Class C is $487.75. The current stock price is $339.32, suggesting the stock is 43.7% undervalued.
The price-to-earnings (P/E) ratio is 30.98. Price-to-book ratio is 9.86. Price-to-sales ratio is 10.16. Enterprise value to EBITDA is 22.29. PEG ratio is 0.99.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Alphabet Inc - Class C's intrinsic value.