Alphabet Valuation

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

GOOG ($167.2) is trading below our estimate of [[fair value]] ($205.27)

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

Valuation Score

1/6

Valuation Score 1/6

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 GOOG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GOOG ($167.2) is trading below our estimate of fair value ($205.27)

Significantly Below Fair Value: GOOG is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for GOOG. This is calculated by dividing GOOG's market cap by their current earnings.
What is GOOG's PE Ratio?
PE Ratio	22.3x
Earnings	US$94.27b
Market Cap	US$2.11t

GOOG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	6x
Enterprise Value/EBITDA	16.6x
PEG Ratio	2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GOOG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	17.1x
META Meta Platforms	25.6x	10.9%	US$1.4t
700 Tencent Holdings	20.2x	11.3%	HK$3.7t
BIDU Baidu	10.6x	6.1%	US$30.4b
1024 Kuaishou Technology	11.9x	18.7%	HK$200.0b
GOOG Alphabet	22.3x	10.9%	US$2.1t

Price-To-Earnings vs Peers: GOOG is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the peer average (17.3x).

Price to Earnings Ratio vs Industry

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

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: GOOG is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the Global Interactive Media and Services industry average (21.4x).

Price to Earnings Ratio vs Fair Ratio

What is GOOG'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.

GOOG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	22.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate GOOG's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.