ALPHABET INC-CL A (GOOGL) Fundamental Analysis & Valuation

NASDAQ:GOOGL • US02079K3059

Current stock price

280.92 USD
-10.01 (-3.44%)
At close:
281.29 USD
+0.37 (+0.13%)
Pre-Market:

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

9

1. GOOGL Profitability Analysis

1.1 Basic Checks

  • GOOGL had positive earnings in the past year.
  • GOOGL had a positive operating cash flow in the past year.
  • GOOGL had positive earnings in each of the past 5 years.
  • GOOGL had a positive operating cash flow in each of the past 5 years.
GOOGL Yearly Net Income VS EBIT VS OCF VS FCFGOOGL 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%, GOOGL belongs to the best of the industry, outperforming 92.75% of the companies in the same industry.
  • GOOGL has a better Return On Equity (31.83%) than 89.86% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 23.22%, GOOGL belongs to the top of the industry, outperforming 94.20% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for GOOGL 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%
GOOGL Yearly ROA, ROE, ROICGOOGL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • GOOGL has a better Profit Margin (32.81%) than 92.75% of its industry peers.
  • GOOGL's Profit Margin has improved in the last couple of years.
  • The Operating Margin of GOOGL (33.59%) is better than 95.65% of its industry peers.
  • In the last couple of years the Operating Margin of GOOGL has grown nicely.
  • The Gross Margin of GOOGL (59.65%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of GOOGL has grown nicely.
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%
GOOGL Yearly Profit, Operating, Gross MarginsGOOGL 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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7

2. GOOGL Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GOOGL is creating value.
  • The number of shares outstanding for GOOGL has been reduced compared to 1 year ago.
  • GOOGL has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, GOOGL has a worse debt to assets ratio.
GOOGL Yearly Shares OutstandingGOOGL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B
GOOGL Yearly Total Debt VS Total AssetsGOOGL 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 13.72 indicates that GOOGL is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 13.72, GOOGL belongs to the best of the industry, outperforming 97.10% of the companies in the same industry.
  • GOOGL 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.
  • Looking at the Debt to FCF ratio, with a value of 0.70, GOOGL is in the better half of the industry, outperforming 79.71% of the companies in the same industry.
  • A Debt/Equity ratio of 0.12 indicates that GOOGL is not too dependend on debt financing.
  • With a Debt to Equity ratio value of 0.12, GOOGL perfoms like the industry average, outperforming 50.72% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.7
Altman-Z 13.72
ROIC/WACC2.6
WACC8.93%
GOOGL Yearly LT Debt VS Equity VS FCFGOOGL 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 2.01 indicates that GOOGL has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.01, GOOGL is in line with its industry, outperforming 56.52% of the companies in the same industry.
  • GOOGL has a Quick Ratio of 2.01. This indicates that GOOGL is financially healthy and has no problem in meeting its short term obligations.
  • GOOGL has a Quick ratio (2.01) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.01
Quick Ratio 2.01
GOOGL Yearly Current Assets VS Current LiabilitesGOOGL 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. GOOGL Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 30.43% over the past year.
  • GOOGL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.04% yearly.
  • The Revenue has grown by 15.09% in the past year. This is quite good.
  • GOOGL 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

  • GOOGL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.22% yearly.
  • GOOGL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.79% yearly.
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.
  • 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.
GOOGL Yearly Revenue VS EstimatesGOOGL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 200B 400B 600B 800B 1T
GOOGL Yearly EPS VS EstimatesGOOGL 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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3

4. GOOGL Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 26.75 indicates a quite expensive valuation of GOOGL.
  • GOOGL's Price/Earnings ratio is in line with the industry average.
  • GOOGL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 23.81 indicates a rather expensive valuation of GOOGL.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of GOOGL is on the same level as its industry peers.
  • GOOGL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.51, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 26.75
Fwd PE 23.81
GOOGL Price Earnings VS Forward Price EarningsGOOGL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • GOOGL'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 GOOGL.
Industry RankSector Rank
P/FCF 46.38
EV/EBITDA 20.62
GOOGL Per share dataGOOGL 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 GOOGL does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of GOOGL may justify a higher PE ratio.
  • A more expensive valuation may be justified as GOOGL's earnings are expected to grow with 14.82% in the coming years.
PEG (NY)2.16
PEG (5Y)0.92
EPS Next 2Y14.34%
EPS Next 3Y14.82%

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3

5. GOOGL Dividend Analysis

5.1 Amount

  • GOOGL has a yearly dividend return of 0.27%, which is pretty low.
  • GOOGL's Dividend Yield is rather good when compared to the industry average which is at 0.66. GOOGL pays more dividend than 86.96% of the companies in the same industry.
  • With a Dividend Yield of 0.27, GOOGL pays less dividend than the S&P500 average, which is at 1.90.
Industry RankSector Rank
Dividend Yield 0.27%

5.2 History

  • GOOGL has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
GOOGL Yearly Dividends per shareGOOGL Yearly Dividends per shareYearly Dividends per share 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • GOOGL pays out 7.60% of its income as dividend. This is a sustainable payout ratio.
DP7.6%
EPS Next 2Y14.34%
EPS Next 3Y14.82%
GOOGL Yearly Income VS Free CF VS DividendGOOGL 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
GOOGL Dividend Payout.GOOGL Dividend Payout, showing the Payout Ratio.GOOGL Dividend Payout.PayoutRetained Earnings

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GOOGL Fundamentals: All Metrics, Ratios and Statistics

ALPHABET INC-CL A

NASDAQ:GOOGL (3/26/2026, 8:26:10 PM)

Premarket: 281.29 +0.37 (+0.13%)

280.92

-10.01 (-3.44%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-04
Earnings (Next)04-22
Inst Owners80.67%
Inst Owner Change-0.38%
Ins Owners0.06%
Ins Owner Change-0.9%
Market Cap3.40T
Revenue(TTM)402.84B
Net Income(TTM)132.17B
Analysts82.9
Price Target366.94 (30.62%)
Short Float %1.32%
Short Ratio2.2
Dividend
Industry RankSector Rank
Dividend Yield 0.27%
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)8.72%
PT rev (3m)15.74%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)3.14%
EPS NY rev (1m)2.15%
EPS NY rev (3m)2.91%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)3.34%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)4.41%
Valuation
Industry RankSector Rank
PE 26.75
Fwd PE 23.81
P/S 8.44
P/FCF 46.38
P/OCF 20.63
P/B 8.18
P/tB 8.9
EV/EBITDA 20.62
EPS(TTM)10.5
EY3.74%
EPS(NY)11.8
Fwd EY4.2%
FCF(TTM)6.06
FCFY2.16%
OCF(TTM)13.62
OCFY4.85%
SpS33.3
BVpS34.33
TBVpS31.57
PEG (NY)2.16
PEG (5Y)0.92
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 13.72
F-Score6
WACC8.93%
ROIC/WACC2.6
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 A / GOOGL Fundamental Analysis FAQ

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

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


What is the valuation status for GOOGL stock?

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


How profitable is ALPHABET INC-CL A (GOOGL) stock?

ALPHABET INC-CL A (GOOGL) has a profitability rating of 9 / 10.


What are the PE and PB ratios of ALPHABET INC-CL A (GOOGL) stock?

The Price/Earnings (PE) ratio for ALPHABET INC-CL A (GOOGL) is 26.75 and the Price/Book (PB) ratio is 8.18.


What is the expected EPS growth for ALPHABET INC-CL A (GOOGL) stock?

The Earnings per Share (EPS) of ALPHABET INC-CL A (GOOGL) is expected to grow by 12.37% in the next year.