GOOG Relative Valuation
GOOG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, GOOG is overvalued; if below, it's undervalued.
Historical Valuation
Alphabet Inc (GOOG) is now in the Overvalued zone, suggesting that its current forward PE ratio of 30.14 is considered Overvalued compared with the five-year average of 22.07. The fair price of Alphabet Inc (GOOG) is between 222.12 to 287.33 according to relative valuation methord. Compared to the current price of 320.62 USD , Alphabet Inc is Overvalued By 11.58%.
Relative Value
Fair Zone
222.12-287.33
Current Price：320.62
11.58%
Overvalued
29.91
PE
1Y
3Y
5Y
Trailing
Forward
18.61
EV/EBITDA
Alphabet Inc. (GOOG) has a current EV/EBITDA of 18.61. The 5-year average EV/EBITDA is 12.79. The thresholds are as follows: Strongly Undervalued below 8.62, Undervalued between 8.62 and 10.71, Fairly Valued between 14.88 and 10.71, Overvalued between 14.88 and 16.96, and Strongly Overvalued above 16.96. The current Forward EV/EBITDA of 18.61 falls within the Strongly Overvalued range.
25.63
EV/EBIT
Alphabet Inc. (GOOG) has a current EV/EBIT of 25.63. The 5-year average EV/EBIT is 18.01. The thresholds are as follows: Strongly Undervalued below 11.92, Undervalued between 11.92 and 14.97, Fairly Valued between 21.06 and 14.97, Overvalued between 21.06 and 24.10, and Strongly Overvalued above 24.10. The current Forward EV/EBIT of 25.63 falls within the Strongly Overvalued range.
8.79
PS
Alphabet Inc. (GOOG) has a current PS of 8.79. The 5-year average PS is 5.56. The thresholds are as follows: Strongly Undervalued below 3.75, Undervalued between 3.75 and 4.66, Fairly Valued between 6.47 and 4.66, Overvalued between 6.47 and 7.38, and Strongly Overvalued above 7.38. The current Forward PS of 8.79 falls within the Strongly Overvalued range.
21.63
P/OCF
Alphabet Inc. (GOOG) has a current P/OCF of 21.63. The 5-year average P/OCF is 15.18. The thresholds are as follows: Strongly Undervalued below 9.90, Undervalued between 9.90 and 12.54, Fairly Valued between 17.83 and 12.54, Overvalued between 17.83 and 20.47, and Strongly Overvalued above 20.47. The current Forward P/OCF of 21.63 falls within the Strongly Overvalued range.
55.33
P/FCF
Alphabet Inc. (GOOG) has a current P/FCF of 55.33. The 5-year average P/FCF is 24.40. The thresholds are as follows: Strongly Undervalued below 11.43, Undervalued between 11.43 and 17.91, Fairly Valued between 30.89 and 17.91, Overvalued between 30.89 and 37.38, and Strongly Overvalued above 37.38. The current Forward P/FCF of 55.33 falls within the Strongly Overvalued range.
Alphabet Inc (GOOG) has a current Price-to-Book (P/B) ratio of 9.98. Compared to its 3-year average P/B ratio of 6.43 , the current P/B ratio is approximately 55.07% higher. Relative to its 5-year average P/B ratio of 6.48, the current P/B ratio is about 53.99% higher. Alphabet Inc (GOOG) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.62%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.68% , the current FCF yield is about -100.00% lower.
9.92
P/B
Median3y
6.43
Median5y
6.48
1.90
FCF Yield
Median3y
3.62
Median5y
3.68
Competitors Valuation Multiple
The average P/S ratio for GOOG's competitors is , providing a benchmark for relative valuation. Alphabet Inc Corp (GOOG) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 15.95%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of GOOG increased by 67.19% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 22.95 to 31.34.
The secondary factor is the Revenue Growth, contributed 15.95%to the performance.
Overall, the performance of GOOG in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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