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

NASDAQ:GOOGL • US02079K3059

Current stock price

384.44 USD
-0.36 (-0.09%)
Last:

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.
  • In the past year GOOGL had a positive cash flow from operations.
  • 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

  • GOOGL has a better Return On Assets (22.76%) than 92.75% of its industry peers.
  • With an excellent Return On Equity value of 33.46%, GOOGL belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
  • GOOGL has a better Return On Invested Capital (20.55%) than 88.41% of its industry peers.
  • GOOGL had an Average Return On Invested Capital over the past 3 years of 24.40%. This is significantly above the industry average of 10.91%.
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

  • GOOGL's Profit Margin of 37.92% is amongst the best of the industry. GOOGL outperforms 92.75% of its industry peers.
  • GOOGL's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 34.11%, GOOGL belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
  • GOOGL's Operating Margin has improved in the last couple of years.
  • GOOGL has a Gross Margin of 60.37%. This is comparable to the rest of the industry: GOOGL outperforms 55.07% of its industry peers.
  • In the last couple of years the Gross Margin of GOOGL has grown nicely.
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

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GOOGL is creating value.
  • GOOGL has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for GOOGL has been reduced compared to 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

  • GOOGL has an Altman-Z score of 14.62. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
  • GOOGL has a better Altman-Z score (14.62) than 97.10% of its industry peers.
  • The Debt to FCF ratio of GOOGL is 1.20, which is an excellent value as it means it would take GOOGL, only 1.20 years of fcf income to pay off all of its debts.
  • GOOGL has a Debt to FCF ratio of 1.20. This is in the better half of the industry: GOOGL outperforms 76.81% of its industry peers.
  • A Debt/Equity ratio of 0.16 indicates that GOOGL is not too dependend on debt financing.
  • The Debt to Equity ratio of GOOGL (0.16) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 1.2
Altman-Z 14.62
ROIC/WACC2.28
WACC9.03%
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.
  • The Current ratio of GOOGL (1.92) is comparable to the rest of the industry.
  • A Quick Ratio of 1.92 indicates that GOOGL should not have too much problems paying its short term obligations.
  • GOOGL has a Quick ratio of 1.92. This is comparable to the rest of the industry: GOOGL outperforms 53.62% of its industry peers.
  • GOOGL 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
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.
  • The Earnings Per Share has been growing by 29.04% on average over the past years. This is a very strong growth
  • GOOGL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.45%.
  • 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)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.
  • GOOGL 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

  • 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.
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

  • The Price/Earnings ratio is 28.82, which means the current valuation is very expensive for GOOGL.
  • The rest of the industry has a similar Price/Earnings ratio as GOOGL.
  • The average S&P500 Price/Earnings ratio is at 26.77. GOOGL is around the same levels.
  • The Price/Forward Earnings ratio is 27.97, which means the current valuation is very expensive for GOOGL.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of GOOGL is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.75, GOOGL is valued a bit more expensive.
Industry RankSector Rank
PE 28.82
Fwd PE 27.97
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as GOOGL.
  • GOOGL's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 72.18
EV/EBITDA 27
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.
  • 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)2.31
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. GOOGL Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.24%, GOOGL is not a good candidate for dividend investing.
  • GOOGL's Dividend Yield is rather good when compared to the industry average which is at 0.67. GOOGL pays more dividend than 86.96% of the companies in the same industry.
  • With a Dividend Yield of 0.24, GOOGL pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.24%

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 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, 3:15:09 PM)

384.44

-0.36 (-0.09%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Industry Strength14.29
Industry Growth73.91
Earnings (Last)04-29
Earnings (Next)07-21
Inst Owners80.67%
Inst Owner Change0.03%
Ins Owners0.06%
Ins Owner Change-0.83%
Market Cap4.65T
Revenue(TTM)422.50B
Net Income(TTM)160.21B
Analysts83.24
Price Target368.86 (-4.05%)
Short Float %1.35%
Short Ratio2.69
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)-0.31%
PT rev (3m)11.55%
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 28.82
Fwd PE 27.97
P/S 11.01
P/FCF 72.18
P/OCF 26.67
P/B 9.71
P/tB 11.3
EV/EBITDA 27
EPS(TTM)13.34
EY3.47%
EPS(NY)13.75
Fwd EY3.58%
FCF(TTM)5.33
FCFY1.39%
OCF(TTM)14.41
OCFY3.75%
SpS34.93
BVpS39.58
TBVpS34.02
PEG (NY)2.31
PEG (5Y)0.99
Graham Number108.989 (-71.65%)
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 14.62
F-Score6
WACC9.03%
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 28.82 and the Price/Book (PB) ratio is 9.71.


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%.