ALPHABET INC-CL C (GOOG) Fundamental Analysis & Valuation
NASDAQ:GOOG • US02079K1079
Current stock price
347.5 USD
-1.02 (-0.29%)
At close:
346.42 USD
-1.08 (-0.31%)
Pre-Market:
This GOOG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- GOOG had positive earnings in each of the past 5 years.
- GOOG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of GOOG (22.20%) is better than 94.20% of its industry peers.
- GOOG has a better Return On Equity (31.83%) than 91.30% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 23.22%, GOOG belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
- GOOG had an Average Return On Invested Capital over the past 3 years of 24.40%. This is significantly above the industry average of 10.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.2% | ||
| ROE | 31.83% | ||
| ROIC | 23.22% |
ROA(3y)20.93%
ROA(5y)20.07%
ROE(3y)29.56%
ROE(5y)28.46%
ROIC(3y)24.4%
ROIC(5y)23.42%
1.3 Margins
- GOOG has a better Profit Margin (32.81%) than 94.20% of its industry peers.
- In the last couple of years the Profit Margin of GOOG has grown nicely.
- GOOG's Operating Margin of 33.59% is amongst the best of the industry. GOOG outperforms 97.10% of its industry peers.
- In the last couple of years the Operating Margin of GOOG has grown nicely.
- GOOG has a Gross Margin of 59.65%. This is comparable to the rest of the industry: GOOG outperforms 53.62% of its industry peers.
- GOOG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.59% | ||
| PM (TTM) | 32.81% | ||
| GM | 59.65% |
OM growth 3Y8.26%
OM growth 5Y8.25%
PM growth 3Y15.66%
PM growth 5Y8.26%
GM growth 3Y2.51%
GM growth 5Y2.17%
2. GOOG Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GOOG is creating value.
- The number of shares outstanding for GOOG has been reduced compared to 1 year ago.
- Compared to 5 years ago, GOOG has less shares outstanding
- Compared to 1 year ago, GOOG has a worse debt to assets ratio.
2.2 Solvency
- GOOG has an Altman-Z score of 16.41. This indicates that GOOG is financially healthy and has little risk of bankruptcy at the moment.
- GOOG has a better Altman-Z score (16.41) than 95.65% of its industry peers.
- GOOG has a debt to FCF ratio of 0.70. This is a very positive value and a sign of high solvency as it would only need 0.70 years to pay back of all of its debts.
- GOOG has a better Debt to FCF ratio (0.70) than 78.26% of its industry peers.
- GOOG has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of GOOG (0.12) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.7 | ||
| Altman-Z | 16.41 |
ROIC/WACC2.59
WACC8.95%
2.3 Liquidity
- GOOG has a Current Ratio of 2.01. This indicates that GOOG is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.01, GOOG is in line with its industry, outperforming 57.97% of the companies in the same industry.
- A Quick Ratio of 2.01 indicates that GOOG has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 2.01, GOOG is in line with its industry, outperforming 57.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 |
3. GOOG Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 30.43% over the past year.
- The Earnings Per Share has been growing by 29.04% on average over the past years. This is a very strong growth
- Looking at the last year, GOOG shows a quite strong growth in Revenue. The Revenue has grown by 15.09% in the last year.
- The Revenue has been growing by 17.15% on average over the past years. This is quite good.
EPS 1Y (TTM)30.43%
EPS 3Y32.14%
EPS 5Y29.04%
EPS Q2Q%31.16%
Revenue 1Y (TTM)15.09%
Revenue growth 3Y12.51%
Revenue growth 5Y17.15%
Sales Q2Q%17.99%
3.2 Future
- The Earnings Per Share is expected to grow by 16.45% on average over the next years. This is quite good.
- 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.
4. GOOG Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 33.10, GOOG can be considered very expensive at the moment.
- GOOG's Price/Earnings is on the same level as the industry average.
- GOOG's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.91.
- A Price/Forward Earnings ratio of 29.43 indicates a quite expensive valuation of GOOG.
- GOOG's Price/Forward Earnings ratio is in line with the industry average.
- GOOG's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.1 | ||
| Fwd PE | 29.43 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GOOG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.38 | ||
| EV/EBITDA | 25.77 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- GOOG has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as GOOG's earnings are expected to grow with 14.82% in the coming years.
PEG (NY)2.65
PEG (5Y)1.14
EPS Next 2Y14.41%
EPS Next 3Y14.82%
5. GOOG Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.25%, GOOG is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.67, GOOG pays a better dividend. On top of this GOOG pays more dividend than 85.51% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GOOG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
5.2 History
- GOOG has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- GOOG pays out 7.60% of its income as dividend. This is a sustainable payout ratio.
DP7.6%
EPS Next 2Y14.41%
EPS Next 3Y14.82%
GOOG Fundamentals: All Metrics, Ratios and Statistics
347.5
-1.02 (-0.29%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Industry Strength16.15
Industry Growth75.16
Earnings (Last)02-04 2026-02-04/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners80.67%
Inst Owner Change-5.44%
Ins Owners0.06%
Ins Owner Change0%
Market Cap4.20T
Revenue(TTM)402.84B
Net Income(TTM)132.17B
Analysts83.24
Price Target363.43 (4.58%)
Short Float %0.72%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
Yearly Dividend0.83
Dividend Growth(5Y)N/A
DP7.6%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-09 2026-03-09 (0.21)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.81%
Min EPS beat(2)4.2%
Max EPS beat(2)29.41%
EPS beat(4)4
Avg EPS beat(4)11.45%
Min EPS beat(4)2.67%
Max EPS beat(4)29.41%
EPS beat(8)6
Avg EPS beat(8)9.51%
EPS beat(12)9
Avg EPS beat(12)7.56%
EPS beat(16)9
Avg EPS beat(16)2.78%
Revenue beat(2)0
Avg Revenue beat(2)-0.68%
Min Revenue beat(2)-0.83%
Max Revenue beat(2)-0.53%
Revenue beat(4)0
Avg Revenue beat(4)-0.86%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)-0.4%
Revenue beat(8)0
Avg Revenue beat(8)-1.24%
Revenue beat(12)0
Avg Revenue beat(12)-1.33%
Revenue beat(16)0
Avg Revenue beat(16)-1.92%
PT rev (1m)-1.02%
PT rev (3m)10.53%
EPS NQ rev (1m)2.71%
EPS NQ rev (3m)5.53%
EPS NY rev (1m)0.09%
EPS NY rev (3m)2.23%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)3.18%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)4.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.1 | ||
| Fwd PE | 29.43 | ||
| P/S | 10.44 | ||
| P/FCF | 57.38 | ||
| P/OCF | 25.52 | ||
| P/B | 10.12 | ||
| P/tB | 11.01 | ||
| EV/EBITDA | 25.77 |
EPS(TTM)10.5
EY3.02%
EPS(NY)11.81
Fwd EY3.4%
FCF(TTM)6.06
FCFY1.74%
OCF(TTM)13.62
OCFY3.92%
SpS33.3
BVpS34.33
TBVpS31.57
PEG (NY)2.65
PEG (5Y)1.14
Graham Number90.0554 (-74.08%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.2% | ||
| ROE | 31.83% | ||
| ROCE | 27.48% | ||
| ROIC | 23.22% | ||
| ROICexc | 31.28% | ||
| ROICexgc | 34.42% | ||
| OM | 33.59% | ||
| PM (TTM) | 32.81% | ||
| GM | 59.65% | ||
| FCFM | 18.19% |
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 Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.7 | ||
| Debt/EBITDA | 0.31 | ||
| Cap/Depr | 432.66% | ||
| Cap/Sales | 22.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.27% | ||
| Profit Quality | 55.43% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | 16.41 |
F-Score6
WACC8.95%
ROIC/WACC2.59
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)30.43%
EPS 3Y32.14%
EPS 5Y29.04%
EPS Q2Q%31.16%
EPS Next Y12.47%
EPS Next 2Y14.41%
EPS Next 3Y14.82%
EPS Next 5Y16.45%
Revenue 1Y (TTM)15.09%
Revenue growth 3Y12.51%
Revenue growth 5Y17.15%
Sales Q2Q%17.99%
Revenue Next Year18.01%
Revenue Next 2Y16.63%
Revenue Next 3Y15.88%
Revenue Next 5Y13.93%
EBIT growth 1Y17.98%
EBIT growth 3Y21.8%
EBIT growth 5Y26.82%
EBIT Next Year69.02%
EBIT Next 3Y33.68%
EBIT Next 5Y26.5%
FCF growth 1Y0.69%
FCF growth 3Y6.88%
FCF growth 5Y11.33%
OCF growth 1Y31.46%
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 2 / 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 33.1 and the Price/Book (PB) ratio is 10.12.
What is the financial health of ALPHABET INC-CL C (GOOG) stock?
The financial health rating of ALPHABET INC-CL C (GOOG) is 7 / 10.