Evaluating ALPHABET INC-CL C (NASDAQ:GOOG) using Peter Lynch’s legendary strategy

Peter Lynch favored companies with strong earnings growth, reasonable valuations, and solid financials. In this analysis, we’ll determine if ALPHABET INC-CL C (NASDAQ:GOOG) qualifies as a true Lynch-style investment.

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

• The Return on Equity(ROE) of GOOG is 30.8%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• At a Debt/Equity ratio of 0.03, GOOG seems well-positioned to sustain growth while keeping debt in check.
• Over the past 5 years, GOOG has demonstrated 25.25 growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• GOOG boasts a PEG ratio of 0.78, indicating a reasonable valuation relative to its earnings growth.
• GOOG maintains a healthy liquidity position with a Current Ratio of 1.84.

Fundamental Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Taking everything into account, GOOG scores 7 out of 10 in our fundamental rating. GOOG was compared to 70 industry peers in the Interactive Media & Services industry. GOOG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GOOG is growing strongly while it is still valued neutral. This is a good combination! With these ratings, GOOG could be worth investigating further for growth and quality investing!.

Check the latest full fundamental report of GOOG for a complete fundamental analysis.

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Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.