ALPHABET INC-CL C (GOOG) Fundamental Analysis & Valuation
NASDAQ:GOOG • US02079K1079
Current stock price
346.51 USD
-0.99 (-0.28%)
Last:
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.
- In the past 5 years GOOG has always been profitable.
- Each year in the past 5 years GOOG had a positive operating cash flow.
1.2 Ratios
- GOOG has a better Return On Assets (22.20%) than 94.20% of its industry peers.
- GOOG has a better Return On Equity (31.83%) than 91.30% of its industry peers.
- 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 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 has a Operating Margin of 33.59%. 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 (59.65%) which is in line with 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GOOG is creating value.
- Compared to 1 year ago, GOOG has less shares outstanding
- Compared to 5 years ago, GOOG has less shares outstanding
- The debt/assets ratio for GOOG is higher compared to a year ago.
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.
- Looking at the Altman-Z score, with a value of 16.41, GOOG belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
- 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.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.7 | ||
| Altman-Z | 16.41 |
ROIC/WACC2.59
WACC8.95%
2.3 Liquidity
- A Current Ratio of 2.01 indicates that GOOG has no problem at all paying its short term obligations.
- GOOG has a Current ratio (2.01) which is comparable to the rest of the industry.
- 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.
- The Quick ratio of GOOG (2.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 2.01 |
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 30.43%, which is quite impressive.
- 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 16.45% on average over the next years. This is quite good.
- GOOG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.93% yearly.
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.
4. GOOG Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 33.00, the valuation of GOOG can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as GOOG.
- GOOG is valuated rather expensively when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 29.34 indicates a quite expensive valuation of GOOG.
- GOOG's Price/Forward Earnings ratio is in line with the industry average.
- GOOG is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33 | ||
| Fwd PE | 29.34 |
4.2 Price Multiples
- GOOG's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as GOOG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.21 | ||
| EV/EBITDA | 25.77 |
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.
- 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 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
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 2Y14.41%
EPS Next 3Y14.82%
GOOG Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:GOOG (4/29/2026, 12:47:08 PM)
346.51
-0.99 (-0.28%)
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 Cap4.19T
Revenue(TTM)402.84B
Net Income(TTM)132.17B
Analysts83.24
Price Target363.43 (4.88%)
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 | ||
| Fwd PE | 29.34 | ||
| P/S | 10.41 | ||
| P/FCF | 57.21 | ||
| P/OCF | 25.45 | ||
| P/B | 10.09 | ||
| P/tB | 10.98 | ||
| EV/EBITDA | 25.77 |
EPS(TTM)10.5
EY3.03%
EPS(NY)11.81
Fwd EY3.41%
FCF(TTM)6.06
FCFY1.75%
OCF(TTM)13.62
OCFY3.93%
SpS33.3
BVpS34.33
TBVpS31.57
PEG (NY)2.65
PEG (5Y)1.14
Graham Number90.0554 (-74.01%)
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 and the Price/Book (PB) ratio is 10.09.
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.