ALPHABET INC-CL C (GOOG) Fundamental Analysis & Valuation

NASDAQ:GOOG • US02079K1079

Current stock price

383.22 USD
+1.28 (+0.34%)
At close:
382.4 USD
-0.82 (-0.21%)
After Hours:

This GOOG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. GOOG Profitability Analysis

1.1 Basic Checks

  • GOOG had positive earnings in the past year.
  • GOOG had a positive operating cash flow in the past year.
  • In the past 5 years GOOG has always been profitable.
  • In the past 5 years GOOG always reported a positive cash flow from operatings.
GOOG Yearly Net Income VS EBIT VS OCF VS FCFGOOG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

1.2 Ratios

  • GOOG's Return On Assets of 22.76% is amongst the best of the industry. GOOG outperforms 94.20% of its industry peers.
  • GOOG has a Return On Equity of 33.46%. This is amongst the best in the industry. GOOG outperforms 92.75% of its industry peers.
  • GOOG has a Return On Invested Capital of 20.55%. This is amongst the best in the industry. GOOG outperforms 89.86% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for GOOG is significantly above the industry average of 10.81%.
Industry RankSector Rank
ROA 22.76%
ROE 33.46%
ROIC 20.55%
ROA(3y)20.93%
ROA(5y)20.07%
ROE(3y)29.56%
ROE(5y)28.46%
ROIC(3y)24.4%
ROIC(5y)23.42%
GOOG Yearly ROA, ROE, ROICGOOG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • The Profit Margin of GOOG (37.92%) is better than 94.20% of its industry peers.
  • In the last couple of years the Profit Margin of GOOG has grown nicely.
  • GOOG has a Operating Margin of 34.11%. This is amongst the best in the industry. GOOG outperforms 97.10% of its industry peers.
  • GOOG's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 60.37%, GOOG perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
  • GOOG's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 34.11%
PM (TTM) 37.92%
GM 60.37%
OM growth 3Y8.26%
OM growth 5Y8.25%
PM growth 3Y15.66%
PM growth 5Y8.26%
GM growth 3Y2.51%
GM growth 5Y2.17%
GOOG Yearly Profit, Operating, Gross MarginsGOOG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. GOOG Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GOOG is creating value.
  • The number of shares outstanding for GOOG has been reduced compared to 1 year ago.
  • The number of shares outstanding for GOOG has been reduced compared to 5 years ago.
  • GOOG has a worse debt/assets ratio than last year.
GOOG Yearly Shares OutstandingGOOG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B
GOOG Yearly Total Debt VS Total AssetsGOOG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B 400B 500B

2.2 Solvency

  • An Altman-Z score of 14.57 indicates that GOOG is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of GOOG (14.57) is better than 95.65% of its industry peers.
  • GOOG has a debt to FCF ratio of 1.20. This is a very positive value and a sign of high solvency as it would only need 1.20 years to pay back of all of its debts.
  • GOOG has a better Debt to FCF ratio (1.20) than 78.26% of its industry peers.
  • GOOG has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
  • With a Debt to Equity ratio value of 0.16, GOOG perfoms like the industry average, outperforming 50.72% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 1.2
Altman-Z 14.57
ROIC/WACC2.28
WACC9%
GOOG Yearly LT Debt VS Equity VS FCFGOOG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B 400B

2.3 Liquidity

  • GOOG has a Current Ratio of 1.92. This is a normal value and indicates that GOOG is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of GOOG (1.92) is comparable to the rest of the industry.
  • GOOG has a Quick Ratio of 1.92. This is a normal value and indicates that GOOG is financially healthy and should not expect problems in meeting its short term obligations.
  • GOOG has a Quick ratio (1.92) which is in line with its industry peers.
  • The current and quick ratio evaluation for GOOG is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.92
Quick Ratio 1.92
GOOG Yearly Current Assets VS Current LiabilitesGOOG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B 200B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. GOOG Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 58.24% over the past year.
  • GOOG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.04% yearly.
  • GOOG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.45%.
  • Measured over the past years, GOOG shows a quite strong growth in Revenue. The Revenue has been growing by 17.15% on average per year.
EPS 1Y (TTM)58.24%
EPS 3Y32.14%
EPS 5Y29.04%
EPS Q2Q%125.11%
Revenue 1Y (TTM)17.45%
Revenue growth 3Y12.51%
Revenue growth 5Y17.15%
Sales Q2Q%4.91%

3.2 Future

  • Based on estimates for the next years, GOOG will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.45% on average per year.
  • Based on estimates for the next years, GOOG will show a quite strong growth in Revenue. The Revenue will grow by 13.93% on average per year.
EPS Next Y12.47%
EPS Next 2Y14.41%
EPS Next 3Y14.82%
EPS Next 5Y16.45%
Revenue Next Year18.01%
Revenue Next 2Y16.63%
Revenue Next 3Y15.88%
Revenue Next 5Y13.93%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
GOOG Yearly Revenue VS EstimatesGOOG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 200B 400B 600B 800B 1T
GOOG Yearly EPS VS EstimatesGOOG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 10 20 30

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Find the best growth stocksShow best growing peers

3

4. GOOG Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 28.73, GOOG can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of GOOG is on the same level as its industry peers.
  • When comparing the Price/Earnings ratio of GOOG to the average of the S&P500 Index (26.64), we can say GOOG is valued inline with the index average.
  • Based on the Price/Forward Earnings ratio of 27.88, the valuation of GOOG can be described as expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of GOOG is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of GOOG to the average of the S&P500 Index (21.36), we can say GOOG is valued slightly more expensively.
Industry RankSector Rank
PE 28.73
Fwd PE 27.88
GOOG Price Earnings VS Forward Price EarningsGOOG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GOOG is on the same level as its industry peers.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as GOOG.
Industry RankSector Rank
P/FCF 71.95
EV/EBITDA 26.89
GOOG Per share dataGOOG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of GOOG may justify a higher PE ratio.
  • GOOG's earnings are expected to grow with 14.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.3
PEG (5Y)0.99
EPS Next 2Y14.41%
EPS Next 3Y14.82%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. GOOG Dividend Analysis

5.1 Amount

  • GOOG has a yearly dividend return of 0.22%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.61, GOOG pays a better dividend. On top of this GOOG pays more dividend than 85.51% of the companies listed in the same industry.
  • With a Dividend Yield of 0.22, GOOG pays less dividend than the S&P500 average, which is at 1.80.
Industry RankSector Rank
Dividend Yield 0.22%

5.2 History

  • GOOG has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
GOOG Yearly Dividends per shareGOOG Yearly Dividends per shareYearly Dividends per share 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • 6.34% of the earnings are spent on dividend by GOOG. This is a low number and sustainable payout ratio.
DP6.34%
EPS Next 2Y14.41%
EPS Next 3Y14.82%
GOOG Yearly Income VS Free CF VS DividendGOOG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B
GOOG Dividend Payout.GOOG Dividend Payout, showing the Payout Ratio.GOOG Dividend Payout.PayoutRetained Earnings

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GOOG Fundamentals: All Metrics, Ratios and Statistics

ALPHABET INC-CL C

NASDAQ:GOOG (5/1/2026, 8:00:01 PM)

After market: 382.4 -0.82 (-0.21%)

383.22

+1.28 (+0.34%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Industry Strength15.53
Industry Growth72.67
Earnings (Last)04-29
Earnings (Next)07-21
Inst Owners80.67%
Inst Owner Change-5.47%
Ins Owners0.06%
Ins Owner Change0%
Market Cap4.64T
Revenue(TTM)422.50B
Net Income(TTM)160.21B
Analysts83.24
Price Target366.77 (-4.29%)
Short Float %0.72%
Short Ratio2.17
Dividend
Industry RankSector Rank
Dividend Yield 0.22%
Yearly Dividend0.83
Dividend Growth(5Y)N/A
DP6.34%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-09
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)46.81%
Min EPS beat(2)4.2%
Max EPS beat(2)89.42%
EPS beat(4)4
Avg EPS beat(4)31.43%
Min EPS beat(4)2.67%
Max EPS beat(4)89.42%
EPS beat(8)6
Avg EPS beat(8)18.04%
EPS beat(12)9
Avg EPS beat(12)14.47%
EPS beat(16)10
Avg EPS beat(16)8.81%
Revenue beat(2)0
Avg Revenue beat(2)-7.29%
Min Revenue beat(2)-13.76%
Max Revenue beat(2)-0.83%
Revenue beat(4)0
Avg Revenue beat(4)-3.88%
Min Revenue beat(4)-13.76%
Max Revenue beat(4)-0.4%
Revenue beat(8)0
Avg Revenue beat(8)-2.9%
Revenue beat(12)0
Avg Revenue beat(12)-2.34%
Revenue beat(16)0
Avg Revenue beat(16)-2.59%
PT rev (1m)-0.11%
PT rev (3m)11.55%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)2.92%
EPS NY rev (1m)0.09%
EPS NY rev (3m)2.23%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)3.04%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)4.11%
Valuation
Industry RankSector Rank
PE 28.73
Fwd PE 27.88
P/S 10.97
P/FCF 71.95
P/OCF 26.59
P/B 9.68
P/tB 11.26
EV/EBITDA 26.89
EPS(TTM)13.34
EY3.48%
EPS(NY)13.75
Fwd EY3.59%
FCF(TTM)5.33
FCFY1.39%
OCF(TTM)14.41
OCFY3.76%
SpS34.93
BVpS39.58
TBVpS34.02
PEG (NY)2.3
PEG (5Y)0.99
Graham Number108.989 (-71.56%)
Profitability
Industry RankSector Rank
ROA 22.76%
ROE 33.46%
ROCE 24.32%
ROIC 20.55%
ROICexc 26.15%
ROICexgc 30.55%
OM 34.11%
PM (TTM) 37.92%
GM 60.37%
FCFM 15.25%
ROA(3y)20.93%
ROA(5y)20.07%
ROE(3y)29.56%
ROE(5y)28.46%
ROIC(3y)24.4%
ROIC(5y)23.42%
ROICexc(3y)34.39%
ROICexc(5y)36.14%
ROICexgc(3y)39.01%
ROICexgc(5y)41.93%
ROCE(3y)28.87%
ROCE(5y)27.72%
ROICexgc growth 3Y-6.33%
ROICexgc growth 5Y0.43%
ROICexc growth 3Y-3.44%
ROICexc growth 5Y2.49%
OM growth 3Y8.26%
OM growth 5Y8.25%
PM growth 3Y15.66%
PM growth 5Y8.26%
GM growth 3Y2.51%
GM growth 5Y2.17%
F-Score6
Asset Turnover0.6
Health
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 1.2
Debt/EBITDA 0.46
Cap/Depr 475.22%
Cap/Sales 26.02%
Interest Coverage 250
Cash Conversion 104.24%
Profit Quality 40.22%
Current Ratio 1.92
Quick Ratio 1.92
Altman-Z 14.57
F-Score6
WACC9%
ROIC/WACC2.28
Cap/Depr(3y)348.58%
Cap/Depr(5y)288.3%
Cap/Sales(3y)16.07%
Cap/Sales(5y)13.78%
Profit Quality(3y)74.09%
Profit Quality(5y)82.1%
High Growth Momentum
Growth
EPS 1Y (TTM)58.24%
EPS 3Y32.14%
EPS 5Y29.04%
EPS Q2Q%125.11%
EPS Next Y12.47%
EPS Next 2Y14.41%
EPS Next 3Y14.82%
EPS Next 5Y16.45%
Revenue 1Y (TTM)17.45%
Revenue growth 3Y12.51%
Revenue growth 5Y17.15%
Sales Q2Q%4.91%
Revenue Next Year18.01%
Revenue Next 2Y16.63%
Revenue Next 3Y15.88%
Revenue Next 5Y13.93%
EBIT growth 1Y20.94%
EBIT growth 3Y21.8%
EBIT growth 5Y26.82%
EBIT Next Year69.02%
EBIT Next 3Y33.68%
EBIT Next 5Y26.5%
FCF growth 1Y-6.77%
FCF growth 3Y6.88%
FCF growth 5Y11.33%
OCF growth 1Y62.82%
OCF growth 3Y21.65%
OCF growth 5Y20.39%

ALPHABET INC-CL C / GOOG Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for ALPHABET INC-CL C?

ChartMill assigns a fundamental rating of 7 / 10 to GOOG.


What is the valuation status of ALPHABET INC-CL C (GOOG) stock?

ChartMill assigns a valuation rating of 3 / 10 to ALPHABET INC-CL C (GOOG). This can be considered as Overvalued.


Can you provide the profitability details for ALPHABET INC-CL C?

ALPHABET INC-CL C (GOOG) has a profitability rating of 9 / 10.


Can you provide the PE and PB ratios for GOOG stock?

The Price/Earnings (PE) ratio for ALPHABET INC-CL C (GOOG) is 28.73 and the Price/Book (PB) ratio is 9.68.


What is the financial health of ALPHABET INC-CL C (GOOG) stock?

The financial health rating of ALPHABET INC-CL C (GOOG) is 8 / 10.