Alphabet Inc.

DB:ABEA Stock Report

Market Cap: €2.0t

Alphabet Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: ABEA (€160.8) is trading below our estimate of fair value (€243.89)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ABEA. This is calculated by dividing ABEA's market cap by their current earnings.
What is ABEA's PE Ratio?
PE Ratio22x
EarningsUS$94.27b
Market CapUS$2.08t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ABEA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28x
G24 Scout24
35.1x14.8%€6.2b
META Meta Platforms
25.9x10.9%US$1.4t
700 Tencent Holdings
20.1x11.3%HK$3.7t
NWO New Work
30.9x32.3%€369.8m
ABEA Alphabet
22x10.9%€2.1t

Price-To-Earnings vs Peers: ABEA is good value based on its Price-To-Earnings Ratio (22x) compared to the peer average (28x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
ABEA 22.0xIndustry Avg. 15.2xNo. of Companies7PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABEA is expensive based on its Price-To-Earnings Ratio (22x) compared to the European Interactive Media and Services industry average (15.2x).

Price to Earnings Ratio vs Fair Ratio

What is ABEA'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.

ABEA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22x
Fair PE Ratio34.4x

Price-To-Earnings vs Fair Ratio: ABEA is good value based on its Price-To-Earnings Ratio (22x) compared to the estimated Fair Price-To-Earnings Ratio (34.4x).

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 ABEA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€160.80
€198.73
+23.6%
7.3%€227.40€143.07n/a48
Nov ’25€158.02
€192.99
+22.1%
7.7%€221.47€139.34n/a48
Oct ’25€150.70
€182.92
+21.4%
7.5%€207.78€136.41n/a48
Sep ’25€147.32
€183.54
+24.6%
7.3%€206.22€135.39n/a45
Aug ’25€157.24
€188.52
+19.9%
7.6%€212.50€139.51n/a45
Jul ’25€170.38
€181.19
+6.3%
9.9%€214.20€133.18n/a45
Jun ’25€156.78
€178.15
+13.6%
9.7%€211.99€131.80n/a46
May ’25€152.54
€176.08
+15.4%
10.8%€210.44€133.75n/a46
Apr ’25€139.78
€153.13
+9.6%
6.0%€167.58€133.13n/a45
Mar ’25€126.68
€150.83
+19.1%
5.9%€165.89€129.95n/a46
Feb ’25€130.40
€149.63
+14.7%
6.5%€165.60€128.80n/a44
Jan ’25€126.50
€140.54
+11.1%
6.8%€163.60€117.25n/a43
Dec ’24€120.74
€140.66
+16.5%
6.7%€164.95€118.22n/a43
Nov ’24€119.50
€144.53
+20.9%
6.7%€169.54€118.68€158.0243
Oct ’24€123.60
€142.71
+15.5%
8.3%€188.84€114.25€150.7043
Sep ’24€125.34
€137.75
+9.9%
8.6%€183.56€111.05€147.3245
Aug ’24€120.08
€135.65
+13.0%
8.9%€181.88€110.04€157.2443
Jul ’24€110.16
€121.25
+10.1%
8.6%€146.59€105.36€170.3841
Jun ’24€114.78
€123.14
+7.3%
8.6%€149.71€107.61€156.7840
May ’24€97.32
€118.60
+21.9%
8.7%€145.15€94.98€152.5443
Apr ’24€95.51
€118.07
+23.6%
10.4%€146.70€85.47€139.7844
Mar ’24€84.50
€120.11
+42.1%
11.2%€149.73€87.24€126.6842
Feb ’24€89.97
€114.71
+27.5%
11.0%€145.65€84.66€130.4041
Jan ’24€82.00
€120.18
+46.6%
13.1%€175.51€87.75€126.5040
Dec ’23€96.19
€124.80
+29.7%
13.3%€180.14€90.07€120.7440
Nov ’23€91.58
€131.96
+44.1%
12.9%€186.61€98.32€119.5040

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

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