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 Fair zone, suggesting that its current forward PE ratio of 27.44 is considered Fairly compared with the five-year average of 22.09. The fair price of Alphabet Inc (GOOG) is between 267.03 to 331.78 according to relative valuation methord.
Relative Value
Fair Zone
267.03-331.78
Current Price：287.43
Fair
27.44
PE
1Y
3Y
5Y
Trailing
Forward
16.21
EV/EBITDA
Alphabet Inc. (GOOG) has a current EV/EBITDA of 16.21. The 5-year average EV/EBITDA is 12.72. The thresholds are as follows: Strongly Undervalued below 8.68, Undervalued between 8.68 and 10.70, Fairly Valued between 14.73 and 10.70, Overvalued between 14.73 and 16.75, and Strongly Overvalued above 16.75. The current Forward EV/EBITDA of 16.21 falls within the Overvalued range.
22.40
EV/EBIT
Alphabet Inc. (GOOG) has a current EV/EBIT of 22.40. The 5-year average EV/EBIT is 17.97. The thresholds are as follows: Strongly Undervalued below 11.87, Undervalued between 11.87 and 14.92, Fairly Valued between 21.02 and 14.92, Overvalued between 21.02 and 24.06, and Strongly Overvalued above 24.06. The current Forward EV/EBIT of 22.40 falls within the Overvalued range.
291.31
PS
Alphabet Inc. (GOOG) has a current PS of 291.31. The 5-year average PS is 7.96. The thresholds are as follows: Strongly Undervalued below -43.96, Undervalued between -43.96 and -18.00, Fairly Valued between 33.92 and -18.00, Overvalued between 33.92 and 59.89, and Strongly Overvalued above 59.89. The current Forward PS of 291.31 falls within the Strongly Overvalued range.
18.97
P/OCF
Alphabet Inc. (GOOG) has a current P/OCF of 18.97. The 5-year average P/OCF is 15.10. The thresholds are as follows: Strongly Undervalued below 9.92, Undervalued between 9.92 and 12.51, Fairly Valued between 17.69 and 12.51, Overvalued between 17.69 and 20.28, and Strongly Overvalued above 20.28. The current Forward P/OCF of 18.97 falls within the Overvalued range.
51.15
P/FCF
Alphabet Inc. (GOOG) has a current P/FCF of 51.15. The 5-year average P/FCF is 23.65. The thresholds are as follows: Strongly Undervalued below 14.04, Undervalued between 14.04 and 18.85, Fairly Valued between 28.46 and 18.85, Overvalued between 28.46 and 33.27, and Strongly Overvalued above 33.27. The current Forward P/FCF of 51.15 falls within the Strongly Overvalued range.
Alphabet Inc (GOOG) has a current Price-to-Book (P/B) ratio of 9.09. Compared to its 3-year average P/B ratio of 6.35 , the current P/B ratio is approximately 43.27% higher. Relative to its 5-year average P/B ratio of 6.43, the current P/B ratio is about 41.34% higher. Alphabet Inc (GOOG) has a Forward Free Cash Flow (FCF) yield of approximately 0.02%. Compared to its 3-year average FCF yield of 3.68%, the current FCF yield is approximately -99.43% lower. Relative to its 5-year average FCF yield of 3.69% , the current FCF yield is about -99.43% lower.
9.09
P/B
Median3y
6.35
Median5y
6.43
0.02
FCF Yield
Median3y
3.68
Median5y
3.69
Competitors Valuation Multiple
The average P/S ratio for GOOG's competitors is 612.04, providing a benchmark for relative valuation. Alphabet Inc Corp (GOOG) exhibits a P/S ratio of 291.31, which is -52.40% 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 68.78% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 20.48 to 28.29.
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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