GOOGL Valuation

Alphabet Inc

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199.750

+0.43(0.216%)1D

Overview
Forecast
Valuation
Earnings

GOOGL Relative Valuation

GOOGL'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, GOOGL is overvalued; if below, it's undervalued.

Historical Valuation

Alphabet Inc (GOOGL) is now in the Undervalued zone, suggesting that its current forward PE ratio of 20.04 is considered Undervalued compared with the five-year average of 22.27. The fair price of Alphabet Inc (GOOGL) is between 217.26 to 282.03 according to relative valuation methord. Compared to the current price of 199.95 USD , Alphabet Inc is Undervalued By 7.97%.

Relative Value

Fair Zone

217.26-282.03

Current Price：199.95

7.97%

Undervalued

20.04

Trailing

Forward

12.49

EV/EBITDA

Alphabet Inc. (GOOGL) has a current EV/EBITDA of 12.49. The 5-year average EV/EBITDA is 12.71. The thresholds are as follows: Strongly Undervalued below 8.73, Undervalued between 8.73 and 10.72, Fairly Valued between 14.70 and 10.72, Overvalued between 14.70 and 16.69, and Strongly Overvalued above 16.69. The current Forward EV/EBITDA of 12.49 falls within the Historic Trend Line -Fairly Valued range.

17.26

EV/EBIT

Alphabet Inc. (GOOGL) has a current EV/EBIT of 17.26. The 5-year average EV/EBIT is 18.15. The thresholds are as follows: Strongly Undervalued below 11.71, Undervalued between 11.71 and 14.93, Fairly Valued between 21.37 and 14.93, Overvalued between 21.37 and 24.59, and Strongly Overvalued above 24.59. The current Forward EV/EBIT of 17.26 falls within the Historic Trend Line -Fairly Valued range.

5.87

Alphabet Inc. (GOOGL) has a current PS of 5.87. The 5-year average PS is 5.46. The thresholds are as follows: Strongly Undervalued below 3.88, Undervalued between 3.88 and 4.67, Fairly Valued between 6.25 and 4.67, Overvalued between 6.25 and 7.04, and Strongly Overvalued above 7.04. The current Forward PS of 5.87 falls within the Historic Trend Line -Fairly Valued range.

14.63

P/OCF

Alphabet Inc. (GOOGL) has a current P/OCF of 14.63. The 5-year average P/OCF is 15.10. The thresholds are as follows: Strongly Undervalued below 9.99, Undervalued between 9.99 and 12.55, Fairly Valued between 17.66 and 12.55, Overvalued between 17.66 and 20.21, and Strongly Overvalued above 20.21. The current Forward P/OCF of 14.63 falls within the Historic Trend Line -Fairly Valued range.

32.97

P/FCF

Alphabet Inc. (GOOGL) has a current P/FCF of 32.97. The 5-year average P/FCF is 23.27. The thresholds are as follows: Strongly Undervalued below 15.24, Undervalued between 15.24 and 19.26, Fairly Valued between 27.29 and 19.26, Overvalued between 27.29 and 31.30, and Strongly Overvalued above 31.30. The current Forward P/FCF of 32.97 falls within the Strongly Overvalued range.

Alphabet Inc (GOOGL) has a current Price-to-Book (P/B) ratio of 6.65. Compared to its 3-year average P/B ratio of 6.12 , the current P/B ratio is approximately 8.59% higher. Relative to its 5-year average P/B ratio of 6.30, the current P/B ratio is about 5.59% higher. Alphabet Inc (GOOGL) has a Forward Free Cash Flow (FCF) yield of approximately 2.73%. Compared to its 3-year average FCF yield of 3.88%, the current FCF yield is approximately -29.58% lower. Relative to its 5-year average FCF yield of 3.73% , the current FCF yield is about -26.68% lower.

6.65

P/B

Median3y

6.12

Median5y

6.30

2.73

FCF Yield

Median3y

3.88

Median5y

3.73

Competitors Valuation Multiple

The average P/S ratio for GOOGL's competitors is 6.81, providing a benchmark for relative valuation. Alphabet Inc Corp (GOOGL) exhibits a P/S ratio of 5.87, which is -13.75% above the industry average. Given its robust revenue growth of 13.79%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Tencent Music Entertainment Group

Spotify Technology SA

6.87

10.14%

144.07B

Performance Decomposition

Market capitalization of GOOGL increased by 22.30% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 84.74B to 96.43B.

The secondary factor is the P/E Change, contributed 6.20%to the performance.

Overall, the performance of GOOGL in the past 1 year is driven by Revenue Growth. Which is more sustainable.

13.79%

84.74B → 96.43B

Revenue Growth

2.31%

28.58 → 29.24

Margin Expansion

6.20%

20.04 → 21.28

P/E Change

22.30%