Does ALPHABET INC-CL C (NASDAQ:GOOG) meet Peter Lynch’s stock-picking criteria?

Peter Lynch’s approach focused on identifying undervalued growth stocks with simple, scalable businesses. We examine whether ALPHABET INC-CL C (NASDAQ:GOOG) fits the characteristics of a Lynch-approved investment.

Following Peter Lynch’s approach: Does ALPHABET INC-CL C (NASDAQ:GOOG) fit the bill?

• With a favorable Return on Equity (ROE) of 30.8%, GOOG demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• GOOG has a Debt/Equity ratio of 0.03, indicating a balanced approach to financing growth.
• The EPS of GOOG has shown consistent growth over a 5-year period, indicating the company's ability to generate increasing earnings over time.
• A PEG ratio of 0.78 suggests that GOOG offers an attractive balance between growth and valuation.
• A Current Ratio of 1.84 indicates that GOOG has a comfortable liquidity buffer.

How does the complete fundamental picture look for GOOG?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

GOOG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 70 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making GOOG a very profitable company, without any liquidiy or solvency issues. GOOG is growing strongly while it is still valued neutral. This is a good combination! This makes GOOG very considerable for growth and quality investing!

Our latest full fundamental report of GOOG contains the most current fundamental analsysis.

More Affordable Growth stocks can be found in our Peter Lynch screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.