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

NASDAQ:GOOGL • US02079K3059

Current stock price

337.12 USD
+4.21 (+1.26%)
At close:
336.32 USD
-0.8 (-0.24%)
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

  • In the past year GOOGL was profitable.
  • GOOGL had a positive operating cash flow in the past year.
  • In the past 5 years GOOGL has always been profitable.
  • In the past 5 years GOOGL always reported a positive cash flow from operatings.
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.
  • Looking at the Return On Equity, with a value of 31.83%, GOOGL belongs to the top of the industry, outperforming 89.86% of the companies in the same industry.
  • GOOGL's Return On Invested Capital of 23.22% is amongst the best of the industry. GOOGL outperforms 94.20% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for GOOGL is significantly above the industry average of 10.87%.
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's Profit Margin of 32.81% is amongst the best of the industry. GOOGL outperforms 92.75% of its industry peers.
  • In the last couple of years the Profit Margin of GOOGL has grown nicely.
  • Looking at the Operating Margin, with a value of 33.59%, GOOGL belongs to the top 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 59.65%. This is comparable to the rest of the industry: GOOGL outperforms 52.17% of its industry peers.
  • GOOGL's Gross Margin has improved in the last couple of years.
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

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GOOGL is creating value.
  • Compared to 1 year ago, GOOGL has less shares outstanding
  • 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 15.99. This indicates that GOOGL is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of GOOGL (15.99) is better than 98.55% of its industry peers.
  • 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.
  • GOOGL 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 GOOGL is not too dependend on debt financing.
  • GOOGL's Debt to Equity ratio of 0.12 is in line compared to the rest of the industry. GOOGL outperforms 52.17% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.7
Altman-Z 15.99
ROIC/WACC2.62
WACC8.86%
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 2.01. This indicates that GOOGL is financially healthy and has no problem in meeting its short term obligations.
  • GOOGL's Current ratio of 2.01 is in line compared to the rest of the industry. GOOGL outperforms 57.97% of its industry peers.
  • 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.
  • With a Quick ratio value of 2.01, GOOGL perfoms like the industry average, outperforming 57.97% of the companies in the same 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

  • GOOGL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.43%, which is quite impressive.
  • The Earnings Per Share has been growing by 29.04% on average over the past years. This is a very strong growth
  • The Revenue has grown by 15.09% in the past year. This is quite good.
  • The Revenue has been growing by 17.15% on average over the past years. This is quite good.
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.
  • The Revenue is expected to grow by 13.79% on average over the next years. This is quite good.
EPS Next Y12.47%
EPS Next 2Y14.41%
EPS Next 3Y14.82%
EPS Next 5Y16.22%
Revenue Next Year17.95%
Revenue Next 2Y16.56%
Revenue Next 3Y15.66%
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.
  • 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 32.11, which means the current valuation is very expensive for GOOGL.
  • Compared to the rest of the industry, the Price/Earnings ratio of GOOGL is on the same level as its industry peers.
  • When comparing the Price/Earnings ratio of GOOGL to the average of the S&P500 Index (27.38), we can say GOOGL is valued inline with the index average.
  • GOOGL is valuated quite expensively with a Price/Forward Earnings ratio of 28.55.
  • GOOGL's Price/Forward Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 38.20. GOOGL is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 32.11
Fwd PE 28.55
GOOGL Price Earnings VS Forward Price EarningsGOOGL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • GOOGL'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 GOOGL.
Industry RankSector Rank
P/FCF 55.66
EV/EBITDA 24.97
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.
  • A more expensive valuation may be justified as GOOGL's earnings are expected to grow with 14.82% in the coming years.
PEG (NY)2.57
PEG (5Y)1.11
EPS Next 2Y14.41%
EPS Next 3Y14.82%

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3

5. GOOGL Dividend Analysis

5.1 Amount

  • GOOGL has a yearly dividend return of 0.26%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.67, GOOGL pays a better dividend. On top of this GOOGL pays more dividend than 86.96% of the companies listed in the same industry.
  • With a Dividend Yield of 0.26, GOOGL pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.26%

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

  • 7.60% of the earnings are spent on dividend by GOOGL. This is a low number and sustainable payout ratio.
DP7.6%
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 (4/15/2026, 8:00:02 PM)

Premarket: 336.32 -0.8 (-0.24%)

337.12

+4.21 (+1.26%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)02-04
Earnings (Next)04-29
Inst Owners80.67%
Inst Owner Change0.01%
Ins Owners0.06%
Ins Owner Change-0.84%
Market Cap4.08T
Revenue(TTM)402.84B
Net Income(TTM)132.17B
Analysts83.24
Price Target365.82 (8.51%)
Short Float %1.38%
Short Ratio2.33
Dividend
Industry RankSector Rank
Dividend Yield 0.26%
Yearly Dividend0.83
Dividend Growth(5Y)N/A
DP7.6%
Div Incr Years1
Div Non Decr Years1
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)-0.31%
PT rev (3m)13.71%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)3.14%
EPS NY rev (1m)0.09%
EPS NY rev (3m)2.68%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)3.35%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)4.41%
Valuation
Industry RankSector Rank
PE 32.11
Fwd PE 28.55
P/S 10.12
P/FCF 55.66
P/OCF 24.76
P/B 9.82
P/tB 10.68
EV/EBITDA 24.97
EPS(TTM)10.5
EY3.11%
EPS(NY)11.81
Fwd EY3.5%
FCF(TTM)6.06
FCFY1.8%
OCF(TTM)13.62
OCFY4.04%
SpS33.3
BVpS34.33
TBVpS31.57
PEG (NY)2.57
PEG (5Y)1.11
Graham Number90.0554 (-73.29%)
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 15.99
F-Score6
WACC8.86%
ROIC/WACC2.62
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 5Y16.22%
Revenue 1Y (TTM)15.09%
Revenue growth 3Y12.51%
Revenue growth 5Y17.15%
Sales Q2Q%17.99%
Revenue Next Year17.95%
Revenue Next 2Y16.56%
Revenue Next 3Y15.66%
Revenue Next 5Y13.79%
EBIT growth 1Y17.98%
EBIT growth 3Y21.8%
EBIT growth 5Y26.82%
EBIT Next Year69.02%
EBIT Next 3Y33.68%
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.


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 32.11 and the Price/Book (PB) ratio is 9.82.


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 7.6%.