Alphabet Valuation

Is GOOGL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GOOGL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
CHF 621.00
Fair Value
43.6% undervalued intrinsic discount
50
Number of Analysts

Below Fair Value: GOOGL (CHF350) is trading below our estimate of fair value (CHF621)

Significantly Below Fair Value: GOOGL is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for GOOGL?

Key metric: As GOOGL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GOOGL. This is calculated by dividing GOOGL's market cap by their current earnings.
What is GOOGL's PE Ratio?
PE Ratio18.9x
EarningsUS$100.12b
Market CapUS$1.86t

Price to Earnings Ratio vs Peers

How does GOOGL's PE Ratio compare to its peers?

The above table shows the PE ratio for GOOGL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21x
META Meta Platforms
21.6x9.8%US$1.3t
700 Tencent Holdings
20.8x9.5%HK$4.3t
31.8x11.5%JP¥3.8t
BIDU Baidu
9.7x2.7%US$30.1b
GOOGL Alphabet
18.9x10.0%CHF 1.9t

Price-To-Earnings vs Peers: GOOGL is good value based on its Price-To-Earnings Ratio (18.9x) compared to the peer average (21.1x).


Price to Earnings Ratio vs Industry

How does GOOGL's PE Ratio compare vs other companies in the European Interactive Media and Services Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GOOGL 18.9xIndustry Avg. 25.5xNo. of Companies5PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GOOGL is good value based on its Price-To-Earnings Ratio (18.9x) compared to the European Interactive Media and Services industry average (25.4x).


Price to Earnings Ratio vs Fair Ratio

What is GOOGL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GOOGL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.9x
Fair PE Ratio55.1x

Price-To-Earnings vs Fair Ratio: GOOGL is good value based on its Price-To-Earnings Ratio (18.9x) compared to the estimated Fair Price-To-Earnings Ratio (55.1x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst GOOGL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 350.00
CHF 167.94
-52.0%
10.9%CHF 199.20CHF 131.97n/a50
Apr ’26CHF 350.00
CHF 191.66
-45.2%
7.4%CHF 212.28CHF 147.71n/a51
Mar ’26CHF 350.00
CHF 196.11
-44.0%
6.1%CHF 214.59CHF 164.52n/a49
Feb ’26CHF 350.00
CHF 198.30
-43.3%
6.0%CHF 218.57CHF 168.00n/a48
Jan ’26CHF 1,200.00
CHF 189.24
-84.2%
6.5%CHF 214.32CHF 164.73n/a50
Dec ’25CHF 1,200.00
CHF 186.04
-84.5%
6.1%CHF 211.92CHF 162.89n/a50
Nov ’25CHF 1,200.00
CHF 182.93
-84.8%
6.5%CHF 208.94CHF 148.00n/a50
Oct ’25CHF 1,200.00
CHF 172.32
-85.6%
6.4%CHF 194.63CHF 143.86n/a49
Sep ’25CHF 1,200.00
CHF 175.31
-85.4%
6.1%CHF 195.84CHF 144.75n/a46
Aug ’25CHF 1,200.00
CHF 181.59
-84.9%
6.5%CHF 203.82CHF 150.65n/a46
Jul ’25CHF 1,200.00
CHF 176.28
-85.3%
9.2%CHF 207.70CHF 129.14n/a46
Jun ’25CHF 1,200.00
CHF 177.39
-85.2%
9.0%CHF 210.37CHF 130.80n/a47
May ’25CHF 1,200.00
CHF 173.32
-85.6%
10.5%CHF 206.81CHF 131.44n/a47
Apr ’25CHF 1,200.00
CHF 149.04
-87.6%
5.9%CHF 162.81CHF 129.35CHF 350.0045
Mar ’25CHF 1,200.00
CHF 144.30
-88.0%
5.8%CHF 158.43CHF 124.10CHF 350.0046
Feb ’25CHF 1,200.00
CHF 139.67
-88.4%
6.4%CHF 154.39CHF 120.08CHF 350.0044
Jan ’25CHF 1,200.00
CHF 132.41
-89.0%
6.8%CHF 154.14CHF 110.46CHF 1,200.0043
Dec ’24CHF 1,200.00
CHF 135.64
-88.7%
6.7%CHF 159.07CHF 114.00CHF 1,200.0043
Nov ’24CHF 1,200.00
CHF 138.34
-88.5%
6.7%CHF 162.28CHF 113.60CHF 1,200.0043
Oct ’24CHF 1,200.00
CHF 137.84
-88.5%
8.3%CHF 182.40CHF 110.35CHF 1,200.0043
Sep ’24CHF 1,200.00
CHF 131.83
-89.0%
8.6%CHF 175.66CHF 106.28CHF 1,200.0045
Aug ’24CHF 1,200.00
CHF 130.09
-89.2%
8.9%CHF 174.42CHF 105.53CHF 1,200.0043
Jul ’24CHF 1,200.00
CHF 118.68
-90.1%
8.6%CHF 143.48CHF 103.13CHF 1,200.0041
Jun ’24CHF 1,200.00
CHF 119.87
-90.0%
8.6%CHF 145.74CHF 104.75CHF 1,200.0040
May ’24CHF 1,200.00
CHF 116.90
-90.3%
8.7%CHF 143.07CHF 93.62CHF 1,200.0043
Apr ’24CHF 1,200.00
CHF 117.70
-90.2%
10.4%CHF 146.25CHF 85.21CHF 1,200.0044
AnalystConsensusTarget
Consensus Narrative from 50 Analysts
CHF 456.16
Fair Value
23.3% undervalued intrinsic discount
50
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/04/23 21:13
End of Day Share Price 2025/04/23 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Alphabet Inc. is covered by 96 analysts. 56 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David HeasmanAccountability Research Corporation
Rocco StraussArete Research Services LLP
Richard KramerArete Research Services LLP