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

NASDAQ:GOOGL • US02079K3059

Current stock price

385.69 USD
+0.89 (+0.23%)
At close:
385.34 USD
-0.35 (-0.09%)
After Hours:

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

  • In the past year GOOGL was profitable.
  • GOOGL had a positive operating cash flow in the past year.
  • Each year in the past 5 years GOOGL has been profitable.
  • 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

  • Looking at the Return On Assets, with a value of 22.76%, GOOGL belongs to the top of the industry, outperforming 92.75% of the companies in the same industry.
  • GOOGL's Return On Equity of 33.46% is amongst the best of the industry. GOOGL outperforms 91.30% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 20.55%, GOOGL belongs to the top of the industry, outperforming 88.41% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for GOOGL 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%
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

  • With an excellent Profit Margin value of 37.92%, GOOGL belongs to the best of the industry, outperforming 92.75% of the companies in the same industry.
  • In the last couple of years the Profit Margin of GOOGL has grown nicely.
  • GOOGL's Operating Margin of 34.11% is amongst the best of the industry. GOOGL outperforms 95.65% of its industry peers.
  • In the last couple of years the Operating Margin of GOOGL has grown nicely.
  • GOOGL has a Gross Margin (60.37%) which is comparable to the rest of the industry.
  • GOOGL'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%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. GOOGL Health Analysis

2.1 Basic Checks

  • GOOGL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • GOOGL has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, GOOGL has less shares outstanding
  • The debt/assets ratio for GOOGL is higher compared to a year ago.
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 14.65 indicates that GOOGL is not in any danger for bankruptcy at the moment.
  • GOOGL has a better Altman-Z score (14.65) than 97.10% of its industry peers.
  • GOOGL has a debt to FCF ratio of 1.20. This is a very positive value and a sign of high solvency as it would only need 1.20 years to pay back of all of its debts.
  • GOOGL has a better Debt to FCF ratio (1.20) than 76.81% of its industry peers.
  • GOOGL has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
  • GOOGL has a Debt to Equity ratio (0.16) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 1.2
Altman-Z 14.65
ROIC/WACC2.28
WACC9%
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

  • GOOGL has a Current Ratio of 1.92. This is a normal value and indicates that GOOGL is financially healthy and should not expect problems in meeting its short term obligations.
  • GOOGL has a Current ratio of 1.92. This is comparable to the rest of the industry: GOOGL outperforms 53.62% of its industry peers.
  • A Quick Ratio of 1.92 indicates that GOOGL should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.92, GOOGL perfoms like the industry average, outperforming 53.62% of the companies in the same industry.
  • The current and quick ratio evaluation for GOOGL is rather negative, while it does have 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
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 58.24% over the past year.
  • Measured over the past years, GOOGL shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.04% on average per year.
  • GOOGL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.45%.
  • Measured over the past years, GOOGL shows a quite strong growth in Revenue. The Revenue has been growing by 17.15% on average per year.
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

  • Based on estimates for the next years, GOOGL will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.45% on average per year.
  • Based on estimates for the next years, GOOGL 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.
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

  • GOOGL is valuated quite expensively with a Price/Earnings ratio of 28.91.
  • GOOGL's Price/Earnings is on the same level as the industry average.
  • GOOGL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
  • A Price/Forward Earnings ratio of 28.06 indicates a quite expensive valuation of GOOGL.
  • GOOGL's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.41, GOOGL is valued a bit more expensive.
Industry RankSector Rank
PE 28.91
Fwd PE 28.06
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 72.42
EV/EBITDA 27.07
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 an expensive valuation of the company.
  • GOOGL has an outstanding profitability rating, which may justify a higher PE ratio.
  • GOOGL's earnings are expected to grow with 14.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.32
PEG (5Y)1
EPS Next 2Y14.41%
EPS Next 3Y14.82%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. GOOGL Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.22%, GOOGL is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.60, GOOGL pays a better dividend. On top of this GOOGL pays more dividend than 86.96% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, GOOGL's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.22%

5.2 History

  • GOOGL 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
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

  • 6.34% of the earnings are spent on dividend by GOOGL. This is a low number and sustainable payout ratio.
DP6.34%
EPS Next 2Y14.41%
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 (5/1/2026, 8:00:01 PM)

After market: 385.34 -0.35 (-0.09%)

385.69

+0.89 (+0.23%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Industry Strength16.15
Industry Growth73.29
Earnings (Last)04-29
Earnings (Next)07-21
Inst Owners80.67%
Inst Owner Change-0.04%
Ins Owners0.06%
Ins Owner Change-0.83%
Market Cap4.67T
Revenue(TTM)422.50B
Net Income(TTM)160.21B
Analysts83.71
Price Target368.86 (-4.36%)
Short Float %1.35%
Short Ratio2.69
Dividend
Industry RankSector Rank
Dividend Yield 0.22%
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)0.55%
PT rev (3m)12.48%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)2.92%
EPS NY rev (1m)0.09%
EPS NY rev (3m)2.23%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)3.04%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)4.11%
Valuation
Industry RankSector Rank
PE 28.91
Fwd PE 28.06
P/S 11.04
P/FCF 72.42
P/OCF 26.76
P/B 9.75
P/tB 11.34
EV/EBITDA 27.07
EPS(TTM)13.34
EY3.46%
EPS(NY)13.75
Fwd EY3.56%
FCF(TTM)5.33
FCFY1.38%
OCF(TTM)14.41
OCFY3.74%
SpS34.93
BVpS39.58
TBVpS34.02
PEG (NY)2.32
PEG (5Y)1
Graham Number108.989 (-71.74%)
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 14.65
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 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.


Can you provide the profitability details for ALPHABET INC-CL A?

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


Can you provide the PE and PB ratios for GOOGL stock?

The Price/Earnings (PE) ratio for ALPHABET INC-CL A (GOOGL) is 28.91 and the Price/Book (PB) ratio is 9.75.


Is the dividend of ALPHABET INC-CL A sustainable?

The dividend rating of ALPHABET INC-CL A (GOOGL) is 3 / 10 and the dividend payout ratio is 6.34%.