Applying Peter Lynch’s stock selection rules to ALPHABET INC-CL A (NASDAQ:GOOGL)

Peter Lynch’s investment philosophy combines fundamental analysis with a deep understanding of business models. Let’s analyze if ALPHABET INC-CL A (NASDAQ:GOOGL) meets his criteria for a solid investment.

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

• GOOGL demonstrates a strong Return on Equity(ROE) of 30.8%. This indicates the company's ability to generate favorable returns for shareholders and reflects its efficient utilization of capital. ALPHABET INC-CL A shows promising potential for continued success.
• A Debt/Equity ratio of 0.03 highlights GOOGL's commitment to maintaining financial stability.
• The EPS of GOOGL has shown consistent growth over a 5-year period, indicating the company's ability to generate increasing earnings over time.
• GOOGL boasts a PEG ratio of 0.7, indicating a reasonable valuation relative to its earnings growth.
• GOOGL’s Current Ratio of 1.84 highlights its ability to sustain day-to-day operations without liquidity concerns.

What else is there to say on the fundamentals of GOOGL?

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Overall GOOGL gets a fundamental rating of 7 out of 10. We evaluated GOOGL against 70 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making GOOGL a very profitable company, without any liquidiy or solvency issues. GOOGL is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make GOOGL suitable for growth and quality investing!

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

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Disclaimer

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.