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 Overvalued zone, suggesting that its current forward PE ratio of 29.61 is considered Overvalued compared with the five-year average of 22.10. The fair price of Alphabet Inc (GOOGL) is between 225.98 to 292.08 according to relative valuation methord. Compared to the current price of 319.42 USD , Alphabet Inc is Overvalued By 9.36%.
Relative Value
Fair Zone
225.98-292.08
Current Price：319.42
9.36%
Overvalued
29.61
PE
1Y
3Y
5Y
18.33
EV/EBITDA
Alphabet Inc. (GOOGL) 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 17.21, and Strongly Overvalued above 17.21. The current Forward EV/EBITDA of 18.33 falls within the Strongly Overvalued range.
25.18
EV/EBIT
Alphabet Inc. (GOOGL) 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 11.90, Undervalued between 11.90 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
PS
Alphabet Inc. (GOOGL) 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 7.57, and Strongly Overvalued above 7.57. The current Forward PS of 8.64 falls within the Strongly Overvalued range.
21.24
P/OCF
Alphabet Inc. (GOOGL) has a current P/OCF of 21.24. The 5-year average P/OCF is 15.25. 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. (GOOGL) has a current P/FCF of 54.46. The 5-year average P/FCF is 24.88. The thresholds are as follows: Strongly Undervalued below 9.95, Undervalued between 9.95 and 17.41, Fairly Valued between 32.35 and 17.41, Overvalued between 32.35 and 39.81, and Strongly Overvalued above 39.81. The current Forward P/FCF of 54.46 falls within the Strongly Overvalued range.
Alphabet Inc (GOOGL) 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 50.30% higher. Alphabet Inc (GOOGL) 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 GOOGL's competitors is 6.47, providing a benchmark for relative valuation. Alphabet Inc Corp (GOOGL) 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.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of GOOGL increased by 54.07% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 25.19 to 31.09.
The secondary factor is the Revenue Growth, contributed 15.95%to the performance.
Overall, the performance of GOOGL in the past 1 year is driven by P/E Change. Which is more unsustainable.
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Frequently Asked Questions
Is Alphabet Inc (GOOGL) currently overvalued or undervalued?
Alphabet Inc (GOOGL) 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 22.10. The fair price of Alphabet Inc (GOOGL) is between 225.98 to 292.08 according to relative valuation methord. Compared to the current price of 319.42 USD , Alphabet Inc is Overvalued By 9.36% .
What is Alphabet Inc (GOOGL) fair value?
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. The fair price of Alphabet Inc (GOOGL) is between 225.98 to 292.08 according to relative valuation methord.
How does GOOGL's valuation metrics compare to the industry average?
The average P/S ratio for GOOGL's competitors is 6.47, providing a benchmark for relative valuation. Alphabet Inc Corp (GOOGL) 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.
What is the current P/B ratio for Alphabet Inc (GOOGL) as of Jan 07 2026?
As of Jan 07 2026, Alphabet Inc (GOOGL) has a P/B ratio of 9.84. This indicates that the market values GOOGL at 9.84 times its book value.
What is the current FCF Yield for Alphabet Inc (GOOGL) as of Jan 07 2026?
As of Jan 07 2026, Alphabet Inc (GOOGL) 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 (GOOGL) as of Jan 07 2026?
As of Jan 07 2026, Alphabet Inc (GOOGL) 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 (GOOGL) as of Jan 07 2026?
As of Jan 07 2026, Alphabet Inc (GOOGL) has a Forward P/S ratio of 8.64. This means the market is valuing GOOGL at $8.64 for every dollar of expected revenue over the next 12 months.