Alphabet Inc - Class A
Exchange: NASDAQSector: Communication ServicesIndustry: Internet Content & Information
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.
Did you know?
Net income compounded at 25.2% annually over 6 years.
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 A (GOOGL) Stock Analysis
GoodMoat Analysis
Alphabet (Google) is a high-quality business with a deep competitive moat, scoring at least 7/14 on the GoodMoat framework. It is currently priced at a significant discount to its estimated intrinsic value, making the valuation assessment favourable for a value investor.
Read full analysis
Alphabet Inc. is the parent company of Google, operating a dominant portfolio of businesses including the world's leading search engine, the Android mobile OS, the Chrome browser, and the YouTube video platform. Its core competitive advantages are exceptionally strong, meeting at least 7 of the 14 GoodMoat moat criteria. These include powerful network effects across its ecosystem, massive proprietary data assets from billions of users, a globally recognized brand, and significant scale privileges in digital advertising and cloud infrastructure. The business also demonstrates high quality, with a robust ROE of 31.8%, strong operating and profit margins above 30%, and consistent double-digit revenue growth of 18.0% YoY. This profile suggests a high X-Ray Business Score, easily passing the Moat & Quality Gate in the Decision Framework. The current price of $290.93 presents a compelling valuation opportunity. The GoodMoat Target of $487.75 implies a margin of safety of over 40%, which falls into the 'Deeply Undervalued' band according to the framework's valuation assessment. While the P/E of 26.6x may appear elevated in isolation, it is reasonable given the company's growth rate and moat durability, especially when compared to the substantial discount indicated by the DCF-based target. For a value investor focused on high-quality companies trading below intrinsic value, Alphabet warrants a closer look. Analysis based on data as of 2024-05-15.
Market Cap$4.09T
Current Price$339.32
P/E Ratio30.98
Forward P/E—
PEG Ratio0.99
EPS$10.81
Book Value$34.41
P/B Ratio9.86
GOOGL Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 15.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 28.6B
Revenue
161.9B
FY19
182.5B
FY20
257.6B
FY21
282.8B
FY22
307.4B
FY23
350.0B
FY24
402.8B
FY25
Net Income
34.3B
FY19
40.3B
FY20
76.0B
FY21
60.0B
FY22
73.8B
FY23
100.1B
FY24
132.2B
FY25
GOOGL 52-Week Range
$150.86
$343.45
50-Day MA: $308.41200-Day MA: $274.61
Did you know?
Net income compounded at 25.2% annually over 6 years.
Alphabet Inc - Class A (GOOGL) Financial Summary
Alphabet Inc - Class A (GOOGL) is a Communication Services company in the Internet Content & Information industry, listed on NASDAQ. The stock currently trades at $339.32 with a market capitalization of $4.09T.
Key valuation metrics include a P/E ratio of 30.98, price-to-book ratio of 9.86, and EPS of $10.81. The company reports a profit margin of 32.8% and return on equity of 31.8%.
GOOGL Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $4.09T |
| P/E Ratio | 30.98 |
| EPS | $10.81 |
| P/B Ratio | 9.86 |
| P/S Ratio | 10.16 |
| EV/EBITDA | 22.29 |
| Dividend Yield | 0.25% |
| Profit Margin | 32.8% |
| Return on Equity | 31.8% |
| Debt/Equity | 0.14 |
GOOGL Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $161.86B | $34.34B |
| FY20 | $182.53B | $40.27B |
| FY21 | $257.64B | $76.03B |
| FY22 | $282.84B | $59.97B |
| FY23 | $307.39B | $73.80B |
| FY24 | $350.02B | $100.12B |
| FY25 | $402.84B | $132.17B |
Alphabet Inc - Class A (GOOGL) Valuation
Based on GoodMoat's DCF model, Alphabet Inc - Class A has a fair value estimate of $487.75. At the current price of $339.32, the stock appears 30.4% undervalued relative to our intrinsic value estimate.
GOOGL Quality Indicators
Alphabet Inc - Class A maintains a profit margin of 32.8% and an operating margin of 32.0%. Return on equity stands at 31.8%. The current ratio is 2.01. Debt-to-equity ratio is 0.14.
About Alphabet Inc - Class A
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.
GOOGL Free Cash Flow
Alphabet Inc - Class A generated $73.27B in trailing twelve-month free cash flow, representing an FCF yield of 1.79%. This low FCF yield may reflect heavy reinvestment or growth spending.
GOOGL Shares Outstanding
Alphabet Inc - Class A has 12.07 billion shares outstanding at a share price of $339.32, giving it a market capitalization of $4.09T.
GOOGL Recent Insider Trades
Recent insider transactions at Alphabet Inc - Class A include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Hennessy John L. (Director) | SELL | 105 | $34706.70 |
| O'Toole Amie Thuener (VP, Chief Accounting Officer) | SELL | 617 | $178701.71 |
| ARNOLD FRANCES (Director) | SELL | 102 | $28069.38 |