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

NASDAQ:GOOG • US02079K1079

Current stock price

273.86 USD
+0.1 (+0.04%)
Last:

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

  • In the past year GOOG was profitable.
  • In the past year GOOG had a positive cash flow from operations.
  • 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.
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

  • With an excellent Return On Assets value of 22.20%, GOOG belongs to the best of the industry, outperforming 94.20% of the companies in the same industry.
  • With an excellent Return On Equity value of 31.83%, GOOG belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
  • GOOG has a Return On Invested Capital of 23.22%. This is amongst the best in the industry. GOOG outperforms 95.65% 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 11.10%.
Industry RankSector 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%
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

  • 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.
  • With an excellent Operating Margin value of 33.59%, GOOG belongs to the best of the industry, outperforming 97.10% of the companies in the same industry.
  • In the last couple of years the Operating Margin of GOOG has grown nicely.
  • The Gross Margin of GOOG (59.65%) is comparable to the rest of the industry.
  • GOOG's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
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

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GOOG is creating value.
  • GOOG has less shares outstanding than it did 1 year ago.
  • GOOG has less shares outstanding than it did 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

  • GOOG has an Altman-Z score of 13.44. This indicates that GOOG is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of GOOG (13.44) is better than 97.10% of its industry peers.
  • The Debt to FCF ratio of GOOG is 0.70, which is an excellent value as it means it would take GOOG, only 0.70 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of GOOG (0.70) is better than 81.16% of its industry peers.
  • A Debt/Equity ratio of 0.12 indicates that GOOG is not too dependend on debt financing.
  • With a Debt to Equity ratio value of 0.12, GOOG perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.7
Altman-Z 13.44
ROIC/WACC2.57
WACC9.03%
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 2.01. This indicates that GOOG is financially healthy and has no problem in meeting its short term obligations.
  • GOOG has a Current ratio of 2.01. This is comparable to the rest of the industry: GOOG outperforms 57.97% of its industry peers.
  • GOOG has a Quick Ratio of 2.01. This indicates that GOOG is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 2.01, GOOG is in line with its industry, outperforming 59.42% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.01
Quick Ratio 2.01
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 30.43% 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 15.09%.
  • GOOG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.15% yearly.
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 16.22% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 13.79% on average over the next years. This is quite good.
EPS Next Y12.37%
EPS Next 2Y14.34%
EPS Next 3Y14.82%
EPS Next 5Y16.22%
Revenue Next Year17.9%
Revenue Next 2Y16.51%
Revenue Next 3Y15.63%
Revenue Next 5Y13.79%

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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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

4

4. GOOG Valuation Analysis

4.1 Price/Earnings Ratio

  • GOOG is valuated quite expensively with a Price/Earnings ratio of 26.08.
  • The rest of the industry has a similar Price/Earnings ratio as GOOG.
  • Compared to an average S&P500 Price/Earnings ratio of 24.89, GOOG is valued at the same level.
  • With a Price/Forward Earnings ratio of 23.21, GOOG is valued on the expensive side.
  • The rest of the industry has a similar Price/Forward Earnings ratio as GOOG.
  • When comparing the Price/Forward Earnings ratio of GOOG to the average of the S&P500 Index (22.19), we can say GOOG is valued inline with the index average.
Industry RankSector Rank
PE 26.08
Fwd PE 23.21
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.
  • 60.87% of the companies in the same industry are more expensive than GOOG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 45.22
EV/EBITDA 20.07
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.
  • 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)2.11
PEG (5Y)0.9
EPS Next 2Y14.34%
EPS Next 3Y14.82%

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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 0.30%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.70, 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 0.30, GOOG pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 0.3%

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 Years0
Div Non Decr Years0
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

  • 7.60% of the earnings are spent on dividend by GOOG. This is a low number and sustainable payout ratio.
DP7.6%
EPS Next 2Y14.34%
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 (3/30/2026, 9:51:09 AM)

273.86

+0.1 (+0.04%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-04
Earnings (Next)04-22
Inst Owners80.67%
Inst Owner Change5.52%
Ins Owners0.06%
Ins Owner Change0%
Market Cap3.31T
Revenue(TTM)402.84B
Net Income(TTM)132.17B
Analysts82.9
Price Target367.18 (34.08%)
Short Float %0.55%
Short Ratio1.45
Dividend
Industry RankSector Rank
Dividend Yield 0.3%
Yearly Dividend0.83
Dividend Growth(5Y)N/A
DP7.6%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-09
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)8.41%
PT rev (3m)13.6%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)3.13%
EPS NY rev (1m)2.15%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)3.35%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)4.37%
Valuation
Industry RankSector Rank
PE 26.08
Fwd PE 23.21
P/S 8.22
P/FCF 45.22
P/OCF 20.11
P/B 7.98
P/tB 8.68
EV/EBITDA 20.07
EPS(TTM)10.5
EY3.83%
EPS(NY)11.8
Fwd EY4.31%
FCF(TTM)6.06
FCFY2.21%
OCF(TTM)13.62
OCFY4.97%
SpS33.3
BVpS34.33
TBVpS31.57
PEG (NY)2.11
PEG (5Y)0.9
Graham Number90.06
Profitability
Industry RankSector 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 RankSector 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 13.44
F-Score6
WACC9.03%
ROIC/WACC2.57
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 Y12.37%
EPS Next 2Y14.34%
EPS Next 3Y14.82%
EPS Next 5Y16.22%
Revenue 1Y (TTM)15.09%
Revenue growth 3Y12.51%
Revenue growth 5Y17.15%
Sales Q2Q%17.99%
Revenue Next Year17.9%
Revenue Next 2Y16.51%
Revenue Next 3Y15.63%
Revenue Next 5Y13.79%
EBIT growth 1Y17.98%
EBIT growth 3Y21.8%
EBIT growth 5Y26.82%
EBIT Next Year68.99%
EBIT Next 3Y33.6%
EBIT Next 5Y26.22%
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.


Can you provide the valuation status for ALPHABET INC-CL C?

ChartMill assigns a valuation rating of 4 / 10 to ALPHABET INC-CL C (GOOG). This can be considered as Fairly Valued.


How profitable is ALPHABET INC-CL C (GOOG) stock?

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


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.


Can you provide the dividend sustainability for GOOG stock?

The dividend rating of ALPHABET INC-CL C (GOOG) is 3 / 10 and the dividend payout ratio is 7.6%.