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

  • In the past year GOOG was profitable.
  • In the past year GOOG had a positive cash flow from operations.
  • In the past 5 years GOOG has always been profitable.
  • 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

  • GOOG has a Return On Assets of 22.76%. This is amongst the best in the industry. GOOG outperforms 94.20% of its industry peers.
  • GOOG has a better Return On Equity (33.46%) than 92.75% of its industry peers.
  • GOOG's Return On Invested Capital of 20.55% is amongst the best of the industry. GOOG outperforms 89.86% of its industry peers.
  • GOOG had an Average Return On Invested Capital over the past 3 years of 24.40%. This is significantly above the industry average of 10.81%.
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.
  • GOOG's Profit Margin has improved in the last couple of years.
  • GOOG has a Operating Margin of 34.11%. This is amongst the best in 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 60.37%. This is comparable to the rest of the industry: GOOG outperforms 56.52% of its industry peers.
  • 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

  • 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
  • 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 14.53 indicates that GOOG is not in any danger for bankruptcy at the moment.
  • GOOG has a Altman-Z score of 14.53. This is amongst the best in the industry. GOOG outperforms 95.65% of its industry peers.
  • The Debt to FCF ratio of GOOG is 1.20, which is an excellent value as it means it would take GOOG, only 1.20 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 1.20, GOOG is doing good in the industry, outperforming 78.26% of the companies in the same industry.
  • A Debt/Equity ratio of 0.16 indicates that GOOG is not too dependend on debt financing.
  • GOOG's Debt to Equity ratio of 0.16 is in line compared to the rest of the industry. GOOG outperforms 50.72% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 1.2
Altman-Z 14.53
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

  • A Current Ratio of 1.92 indicates that GOOG should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.92, GOOG perfoms like the industry average, outperforming 55.07% of the companies in the same industry.
  • A Quick Ratio of 1.92 indicates that GOOG should not have too much problems paying its short term obligations.
  • The Quick ratio of GOOG (1.92) is comparable to the rest of the industry.
  • GOOG does not score too well on the current and quick ratio evaluation. However, as it has 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

  • GOOG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 58.24%, which is quite impressive.
  • Measured over the past years, GOOG shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.04% on average per year.
  • GOOG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.45%.
  • The Revenue has been growing by 17.15% on average over the past years. This is quite good.
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

  • GOOG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.45% yearly.
  • 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

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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

3

4. GOOG Valuation Analysis

4.1 Price/Earnings Ratio

  • GOOG is valuated quite expensively with a Price/Earnings ratio of 28.73.
  • GOOG's Price/Earnings ratio is in line with the industry average.
  • 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.
  • A Price/Forward Earnings ratio of 27.88 indicates a quite expensive valuation of GOOG.
  • GOOG's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 21.36. GOOG is valued slightly more expensive when compared to this.
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

  • GOOG's Enterprise Value to EBITDA is on the same level as the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as GOOG.
Industry RankSector Rank
P/FCF 71.95
EV/EBITDA 26.8
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 GOOG does not grow enough to justify the current Price/Earnings ratio.
  • 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%

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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 0.24%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.68, 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 RankSector Rank
Dividend Yield 0.24%

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
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

  • GOOG pays out 6.34% of its income as dividend. This is a 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-5.44%
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 0.24%
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)-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 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 26.8
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 14.53
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.