GOOG PE Ratio & Valuation,Is GOOG Overvalued

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 29.61 is considered Overvalued compared with the five-year average of 22.11. The fair price of Alphabet Inc (GOOG) is between 228.17 to 294.86 according to relative valuation methord. Compared to the current price of 322.43 USD , Alphabet Inc is Overvalued By 9.35%.

Relative Value

Fair Zone

228.17-294.86

Current Price：322.43

9.35%

Overvalued

29.61

18.33

EV/EBITDA

Alphabet Inc. (GOOG) has a current EV/EBITDA of 18.33. The 5-year average EV/EBITDA is 12.86. The thresholds are as follows: Strongly Undervalued below 8.51, Undervalued between 8.51 and 10.69, Fairly Valued between 15.04 and 10.69, Overvalued between 15.04 and 17.22, and Strongly Overvalued above 17.22. The current Forward EV/EBITDA of 18.33 falls within the Strongly Overvalued range.

25.18

EV/EBIT

Alphabet Inc. (GOOG) has a current EV/EBIT of 25.18. The 5-year average EV/EBIT is 18.05. The thresholds are as follows: Strongly Undervalued below 11.91, Undervalued between 11.91 and 14.98, Fairly Valued between 21.13 and 14.98, Overvalued between 21.13 and 24.20, and Strongly Overvalued above 24.20. The current Forward EV/EBIT of 25.18 falls within the Strongly Overvalued range.

8.64

Alphabet Inc. (GOOG) has a current PS of 8.64. The 5-year average PS is 5.61. The thresholds are as follows: Strongly Undervalued below 3.65, Undervalued between 3.65 and 4.63, Fairly Valued between 6.59 and 4.63, Overvalued between 6.59 and 7.58, and Strongly Overvalued above 7.58. The current Forward PS of 8.64 falls within the Strongly Overvalued range.

21.24

P/OCF

Alphabet Inc. (GOOG) has a current P/OCF of 21.24. The 5-year average P/OCF is 15.26. The thresholds are as follows: Strongly Undervalued below 9.80, Undervalued between 9.80 and 12.53, Fairly Valued between 17.98 and 12.53, Overvalued between 17.98 and 20.71, and Strongly Overvalued above 20.71. The current Forward P/OCF of 21.24 falls within the Strongly Overvalued range.

54.46

P/FCF

Alphabet Inc. (GOOG) has a current P/FCF of 54.46. The 5-year average P/FCF is 24.89. The thresholds are as follows: Strongly Undervalued below 9.95, Undervalued between 9.95 and 17.42, Fairly Valued between 32.35 and 17.42, Overvalued between 32.35 and 39.82, and Strongly Overvalued above 39.82. The current Forward P/FCF of 54.46 falls within the Strongly Overvalued range.

Alphabet Inc (GOOG) has a current Price-to-Book (P/B) ratio of 9.84. Compared to its 3-year average P/B ratio of 6.57 , the current P/B ratio is approximately 49.63% higher. Relative to its 5-year average P/B ratio of 6.55, the current P/B ratio is about 50.28% higher. Alphabet Inc (GOOG) has a Forward Free Cash Flow (FCF) yield of approximately 1.93%. Compared to its 3-year average FCF yield of 3.53%, the current FCF yield is approximately -45.20% lower. Relative to its 5-year average FCF yield of 3.67% , the current FCF yield is about -47.26% lower.

9.84

P/B

Median3y

6.57

Median5y

6.55

1.93

FCF Yield

Median3y

3.53

Median5y

3.67

Competitors Valuation Multiple

The average P/S ratio for GOOG's competitors is 6.47, providing a benchmark for relative valuation. Alphabet Inc Corp (GOOG) exhibits a P/S ratio of 8.64, which is 33.52% above the industry average. Given its robust revenue growth of 15.95%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of GOOG increased by 56.82% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 24.65 to 31.09.

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.

15.95%

88.27B → 102.35B

Revenue Growth

14.70%

29.80 → 34.18

Margin Expansion

26.17%

24.65 → 31.09

P/E Change

56.82%

205.60 → 322.43

Mkt Cap Growth

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Frequently Asked Questions

Is Alphabet Inc (GOOG) currently overvalued or undervalued?

What is Alphabet Inc (GOOG) fair value?

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. The fair price of Alphabet Inc (GOOG) is between 228.17 to 294.86 according to relative valuation methord.

How does GOOG's valuation metrics compare to the industry average?

What is the current P/B ratio for Alphabet Inc (GOOG) as of Jan 08 2026?

As of Jan 08 2026, Alphabet Inc (GOOG) has a P/B ratio of 9.84. This indicates that the market values GOOG at 9.84 times its book value.

What is the current FCF Yield for Alphabet Inc (GOOG) as of Jan 08 2026?

As of Jan 08 2026, Alphabet Inc (GOOG) has a FCF Yield of 1.93%. This means that for every dollar of Alphabet Inc’s market capitalization, the company generates 1.93 cents in free cash flow.

What is the current Forward P/E ratio for Alphabet Inc (GOOG) as of Jan 08 2026?

As of Jan 08 2026, Alphabet Inc (GOOG) has a Forward P/E ratio of 29.61. This means the market is willing to pay $29.61 for every dollar of Alphabet Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Alphabet Inc (GOOG) as of Jan 08 2026?

As of Jan 08 2026, Alphabet Inc (GOOG) has a Forward P/S ratio of 8.64. This means the market is valuing GOOG at $8.64 for every dollar of expected revenue over the next 12 months.

GOOG Valuation