Alphabet
Alphabet Inc. provides online advertising services in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. The last earnings update was 47 days ago. More info.
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GOOG.L Share Price and Events
7 Day Returns
1 Year Returns
GOOG.L Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Alphabet (GOOG.L) | 1.5% | 8.2% | 22.6% | 17.6% | 60% | 115.6% |
| US Interactive Media and Services | 0.2% | 4.9% | 24.4% | 6.3% | 53.7% | 104% |
| US Market | -1.1% | 0.3% | 17.2% | 6.4% | 37.9% | 42.1% |
1 Year Return vs Industry and Market
- GOOG.L outperformed the Interactive Media and Services industry which returned 6.3% over the past year.
- GOOG.L outperformed the Market in United States of America which returned 6.4% over the past year.
GOOG.L Value
Is Alphabet undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Alphabet
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Alphabet.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 36 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.8% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Interactive Media and Services Unlevered Beta | Simply Wall St/ S&P Global | 1.03 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.029 (1 + (1- 21%) (0.48%)) |
1.022 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.02 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.022 * 5.96%) |
8.82% |
Discounted Cash Flow Calculation for NasdaqGS:GOOG.L using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Alphabet is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.82%) |
|
|---|---|---|---|
| 2019 | 29,419.52 | Analyst x14 | 27,034.56 |
| 2020 | 34,742.56 | Analyst x14 | 29,337.91 |
| 2021 | 38,381.30 | Analyst x8 | 29,783.15 |
| 2022 | 46,859.52 | Analyst x6 | 33,414.31 |
| 2023 | 55,183.60 | Analyst x5 | 36,159.99 |
| 2024 | 61,796.79 | Est @ 11.98% | 37,210.70 |
| 2025 | 67,486.90 | Est @ 9.21% | 37,342.65 |
| 2026 | 72,389.45 | Est @ 7.26% | 36,808.20 |
| 2027 | 76,663.41 | Est @ 5.9% | 35,821.28 |
| 2028 | 80,459.68 | Est @ 4.95% | 34,547.37 |
| Present value of next 10 years cash flows | $337,460.11 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $80,459.68 × (1 + 2.73%) ÷ (8.82% – 2.73%) |
$1,356,820.03 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $1,356,820.03 ÷ (1 + 8.82%)10 |
$582,584.42 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $337,460.11 + $582,584.42 |
$920,044.53 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $920,044.53 / 695.19 |
$1323.45 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $1,323.45 |
| Current discount | Discount to share price of
$1,207.65
= -1 x ($1,207.65 - $1,323.45) / $1,323.45 |
8.8% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Alphabet's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- Alphabet's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Alphabet's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Alphabet's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $44.22 |
| NasdaqGS:GOOG.L Share Price ** | NasdaqGS (2019-03-22) in USD | $1207.65 |
| United States of America Interactive Media and Services Industry PE Ratio | Median Figure of 25 Publicly-Listed Interactive Media and Services Companies | 24.86x |
| United States of America Market PE Ratio | Median Figure of 3,062 Publicly-Listed Companies | 17.16x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Alphabet.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:GOOG.L Share Price ÷ EPS (both in USD) = 1207.65 ÷ 44.22 |
27.31x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Alphabet is overvalued based on earnings compared to the US Interactive Media and Services industry average.
- Alphabet is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Alphabet's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 27.31x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 36 Analysts |
12.9%per year |
| United States of America Interactive Media and Services Industry PEG Ratio | Median Figure of 24 Publicly-Listed Interactive Media and Services Companies | 1.57x |
| United States of America Market PEG Ratio | Median Figure of 2,105 Publicly-Listed Companies | 1.44x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 27.31x ÷ 12.9% |
2.12x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Alphabet is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Alphabet's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $255.38 |
| NasdaqGS:GOOG.L Share Price * | NasdaqGS (2019-03-22) in USD | $1207.65 |
| United States of America Interactive Media and Services Industry PB Ratio | Median Figure of 55 Publicly-Listed Interactive Media and Services Companies | 3.34x |
| United States of America Market PB Ratio | Median Figure of 5,165 Publicly-Listed Companies | 1.85x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:GOOG.L Share Price ÷ Book Value per Share (both in USD) = 1207.65 ÷ 255.38 |
4.73x |
* Primary Listing of Alphabet.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Alphabet is overvalued based on assets compared to the US Interactive Media and Services industry average.
Value checks
We assess Alphabet's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Interactive Media and Services industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Interactive Media and Services industry average (and greater than 0)? (1 check) Alphabet has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
GOOG.L Future Performance
How is Alphabet expected to perform in the next 1 to 3 years based on estimates from 36 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Alphabet's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Alphabet's earnings growth is positive but not above the United States of America market average.
- Alphabet's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:GOOG.L Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 36 Analysts | 12.9% |
| NasdaqGS:GOOG.L Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 36 Analysts | 13.7% |
| United States of America Interactive Media and Services Industry Earnings Growth Rate | Market Cap Weighted Average | 12.4% |
| United States of America Interactive Media and Services Industry Revenue Growth Rate | Market Cap Weighted Average | 14.7% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.2% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 36 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 278,633 | 102,650 | 61,204 | 7 |
| 2022-12-31 | 249,224 | 88,818 | 52,735 | 9 |
| 2021-12-31 | 222,337 | 75,319 | 44,516 | 15 |
| 2020-12-31 | 190,057 | 65,100 | 38,522 | 36 |
| 2019-12-31 | 163,484 | 55,347 | 32,957 | 34 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 136,819 | 47,971 | 30,736 |
| 2018-09-30 | 129,866 | 45,252 | 18,768 |
| 2018-06-30 | 123,898 | 41,914 | 16,308 |
| 2018-03-31 | 117,251 | 39,185 | 16,637 |
| 2017-12-31 | 110,855 | 37,091 | 12,662 |
| 2017-09-30 | 104,596 | 36,236 | 21,015 |
| 2017-06-30 | 99,275 | 36,209 | 19,344 |
| 2017-03-31 | 94,765 | 37,926 | 20,697 |
| 2016-12-31 | 90,272 | 36,036 | 19,478 |
| 2016-09-30 | 85,537 | 33,232 | 19,068 |
| 2016-06-30 | 81,761 | 29,532 | 17,986 |
| 2016-03-31 | 77,988 | 27,508 | 17,040 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 36 Analyst Estimates (S&P Global) | See Below |
All data from Alphabet Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 91.08 | 122.19 | 65.25 | 5.00 |
| 2022-12-31 | 76.47 | 96.29 | 60.99 | 7.00 |
| 2021-12-31 | 63.32 | 74.75 | 47.95 | 16.00 |
| 2020-12-31 | 54.56 | 63.08 | 45.81 | 38.00 |
| 2019-12-31 | 46.85 | 53.87 | 42.02 | 40.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 44.22 |
| 2018-09-30 | 27.01 |
| 2018-06-30 | 23.48 |
| 2018-03-31 | 23.98 |
| 2017-12-31 | 18.27 |
| 2017-09-30 | 30.38 |
| 2017-06-30 | 28.03 |
| 2017-03-31 | 30.05 |
| 2016-12-31 | 28.32 |
| 2016-09-30 | 27.75 |
| 2016-06-30 | 26.18 |
| 2016-03-31 | 24.83 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Alphabet's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Alphabet has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
GOOG.L Past Performance
How has Alphabet performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Alphabet's year on year earnings growth rate has been positive over the past 5 years.
- Alphabet's 1-year earnings growth exceeds its 5-year average (142.7% vs 10.4%)
- Alphabet's earnings growth has exceeded the US Interactive Media and Services industry average in the past year (142.7% vs 52.6%).
Earnings and Revenue History
All data from Alphabet Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 136,819.00 | 30,736.00 | 24,459.00 | 21,419.00 |
| 2018-09-30 | 129,866.00 | 18,768.00 | 23,424.00 | 19,691.00 |
| 2018-06-30 | 123,898.00 | 16,308.00 | 22,144.00 | 18,664.00 |
| 2018-03-31 | 117,251.00 | 16,637.00 | 20,959.00 | 17,722.00 |
| 2017-12-31 | 110,855.00 | 12,662.00 | 19,765.00 | 16,625.00 |
| 2017-09-30 | 104,596.00 | 21,015.00 | 18,821.00 | 15,941.00 |
| 2017-06-30 | 99,275.00 | 19,344.00 | 18,573.00 | 15,332.00 |
| 2017-03-31 | 94,765.00 | 20,697.00 | 18,015.00 | 14,523.00 |
| 2016-12-31 | 90,272.00 | 19,478.00 | 17,470.00 | 13,948.00 |
| 2016-09-30 | 85,537.00 | 19,068.00 | 16,579.00 | 13,836.00 |
| 2016-06-30 | 81,761.00 | 17,986.00 | 15,890.00 | 13,470.00 |
| 2016-03-31 | 77,988.00 | 17,040.00 | 15,381.00 | 12,896.00 |
| 2015-12-31 | 74,989.00 | 16,348.00 | 15,183.00 | 12,282.00 |
| 2015-09-30 | 71,763.00 | 15,133.00 | 14,902.00 | 11,585.00 |
| 2015-06-30 | 69,611.00 | 14,078.00 | 14,651.00 | 11,010.00 |
| 2015-03-31 | 67,839.00 | 13,566.00 | 14,466.00 | 10,459.00 |
| 2014-12-31 | 66,001.00 | 13,620.00 | 13,982.00 | 9,832.00 |
| 2014-09-30 | 63,605.00 | 13,794.00 | 13,104.00 | 8,952.00 |
| 2014-06-30 | 60,836.00 | 14,033.00 | 12,418.00 | 8,118.00 |
| 2014-03-31 | 57,988.00 | 13,388.00 | 11,754.00 | 7,646.00 |
| 2013-12-31 | 55,519.00 | 13,160.00 | 10,986.00 | 7,137.00 |
| 2013-09-30 | 54,231.00 | 12,372.00 | 10,705.00 | 7,051.00 |
| 2013-06-30 | 53,781.00 | 11,367.00 | 10,559.00 | 7,008.00 |
| 2013-03-31 | 52,481.00 | 11,426.00 | 10,115.00 | 6,769.00 |
| 2012-12-31 | 46,039.00 | 11,553.00 | 8,946.00 | 6,083.00 |
| 2012-09-30 | 46,339.00 | 10,585.00 | 8,952.00 | 6,047.00 |
| 2012-06-30 | 42,755.00 | 11,156.00 | 8,215.00 | 5,674.00 |
| 2012-03-31 | 39,975.00 | 10,829.00 | 7,722.00 | 5,377.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Alphabet has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Alphabet used its assets more efficiently than the US Interactive Media and Services industry average last year based on Return on Assets.
- Alphabet has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Alphabet's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Interactive Media and Services industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Alphabet has a total score of 5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
GOOG.L Health
How is Alphabet's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Alphabet's finances.
The net worth of a company is the difference between its assets and liabilities.
- Alphabet is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Alphabet's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 33.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Alphabet Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 177,628.00 | 4,012.00 | 109,140.00 |
| 2018-09-30 | 169,840.00 | 3,986.00 | 106,416.00 |
| 2018-06-30 | 162,000.00 | 3,981.00 | 102,254.00 |
| 2018-03-31 | 160,825.00 | 5,302.00 | 102,885.00 |
| 2017-12-31 | 152,502.00 | 3,969.00 | 101,871.00 |
| 2017-09-30 | 157,100.00 | 3,964.00 | 100,143.00 |
| 2017-06-30 | 148,286.00 | 3,955.00 | 94,713.00 |
| 2017-03-31 | 144,949.00 | 3,937.00 | 92,439.00 |
| 2016-12-31 | 139,036.00 | 3,935.00 | 86,333.00 |
| 2016-09-30 | 134,103.00 | 3,938.00 | 83,056.00 |
| 2016-06-30 | 127,879.00 | 6,268.00 | 76,939.00 |
| 2016-03-31 | 123,569.00 | 7,379.00 | 73,429.30 |
| 2015-12-31 | 120,331.00 | 7,648.00 | 71,926.00 |
| 2015-09-30 | 116,241.00 | 8,497.00 | 68,416.00 |
| 2015-06-30 | 111,783.00 | 7,927.00 | 67,725.00 |
| 2015-03-31 | 108,448.00 | 6,892.00 | 64,626.00 |
| 2014-12-31 | 103,860.00 | 8,015.00 | 62,633.00 |
| 2014-09-30 | 98,815.00 | 8,641.00 | 60,058.00 |
| 2014-06-30 | 95,749.00 | 8,327.00 | 58,315.00 |
| 2014-03-31 | 91,711.00 | 8,396.00 | 57,276.00 |
| 2013-12-31 | 87,309.00 | 6,619.00 | 57,447.00 |
| 2013-09-30 | 82,989.00 | 7,140.00 | 54,739.00 |
| 2013-06-30 | 78,852.00 | 8,200.00 | 52,380.00 |
| 2013-03-31 | 75,473.00 | 7,376.00 | 48,561.00 |
| 2012-12-31 | 71,715.00 | 7,210.00 | 47,159.00 |
| 2012-09-30 | 68,028.00 | 7,900.00 | 44,624.00 |
| 2012-06-30 | 64,721.00 | 8,121.00 | 41,722.00 |
| 2012-03-31 | 61,712.00 | 7,707.00 | 47,616.00 |
- Alphabet's level of debt (2.3%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (7.6% vs 2.3% today).
- Debt is well covered by operating cash flow (1195.7%, greater than 20% of total debt).
- Alphabet earns more interest than it pays, coverage of interest payments is not a concern.
Financial health checks
We assess Alphabet's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Alphabet has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
GOOG.L Dividends
What is Alphabet's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Alphabet
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Alphabet's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Alphabet's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 36 Analyst Estimates (S&P Global) | See Below |
| Global Interactive Media and Services Industry Average Dividend Yield | Market Cap Weighted Average of 19 Stocks | 0.3% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2003 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.9% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | ||
| 2022-12-31 | ||
| 2021-12-31 | 0.00 | 3.00 |
| 2020-12-31 | 0.00 | 5.00 |
| 2019-12-31 | 0.00 | 6.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Alphabet has not reported any payouts.
- Unable to verify if Alphabet's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Alphabet's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Alphabet afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Alphabet has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
GOOG.L Management
CEO
| COMPENSATION | $1 |
| AGE | 45 |
| TENURE AS CEO | 3.4 years |
CEO Bio
Dr. Lawrence Edward Page, also known as Larry, is Co-Founder of Alphabet Inc. and has been its Chief Executive Officer since October 2, 2015. Dr. Page co-founded Google Inc. in 1998 and served as its Chief Executive Officer from April 4, 2011 to October 2, 2015. He served as Chief Executive Officer of Google Inc. from September 1998 to July 2001 and served as its Chief Financial Officer from September 1998 to July 2002. He served as President of Products at Alphabet Inc. from July 2001 to April 2011 and also served as its Assistant Secretary. He worked at Chips & Technologies, Inc. He served as President of the University's Eta Kappa Nu Honor Society and built a programmable plotter and inkjet printer out of Legoš. He has been a Director of Google Inc., and Alphabet Inc. since September 1998. Dr. Page serves as a Trustee of XPRIZE Foundation, Inc. He is a Member of the National Advisory Committee (NAC) for the University of Michigan College of Engineering. He is a speaker at such forums as the Technology, Entertainment and Design Conference, The Wall Street Journal Technology Summit, the World Economic Forum and the Commonwealth Club. He served at National Academy of Engineering since 2004. He was named a World Economic Forum Global Leader for Tomorrow in 2002 as well as a “Young Innovator Who Will Create the Future“ by MIT's Technology Review magazine. He was recognized as Research and Development Magazine's Innovator of the Year. He was honored with the Marconi Prize in 2004. Dr. Page was granted an honorary MBA by Instituto De Empresa and was the first recipient of the University of Michigan Alumni Society Recent Engineering Graduate Award. He holds a Master’s degree in Computer Science from Stanford University and a Bachelor of Science degree in Computer Engineering from the University of Michigan.
CEO Compensation
- Larry's compensation has been consistent with company performance over the past year.
- Larry's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Alphabet management team in years:
- The tenure for the Alphabet management team is about average.
Management Team
Larry Page
Co-Founder
$1
45
3.4 yrs
Sergey Brin
Co-Founder
$1
44
Ruth Porat
Senior VP & CFO
$689K
60
3.4 yrs
David Drummond
Senior VP of Corporate Development
$664K
55
3.4 yrs
Amie O'Toole
Chief Accounting Officer & VP
42
0.9 yrs
Ellen West
Vice President of Investor Relations
Ivy Ross
Head of Project Aura and Vice President
62
Astro Teller
Head of Google X
Gulshan Verma
SVP & Head of Client and Agency - Hotstar
0.4 yrs
Susan Wojcicki
Chief Executive Officer of YouTube
49
5.1 yrs
Board of Directors Tenure
Average tenure and age of the Alphabet board of directors in years:
- The average tenure for the Alphabet board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
John Hennessy
Chairman & Lead Director
$431K
66
1.2 yrs
Larry Page
Co-Founder
$1
45
20.5 yrs
Sergey Brin
Co-Founder
$1
44
20.5 yrs
John Doerr
Director
$431K
66
19.8 yrs
Ann Mather
Director
$456K
58
13.3 yrs
Ram Shriram
Independent Director
$431K
61
20.4 yrs
Eric Schmidt
Director
$5M
62
18 yrs
Sundar Pichai
Director
$1M
45
1.7 yrs
Diane Greene
Director
$674K
63
7.2 yrs
Alan Mulally
Director
$431K
72
4.7 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess Alphabet's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Alphabet has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
GOOG.L News
Simply Wall St News
Looking At Alphabet Inc. (NASDAQ:GOOG.L) From All Angles
Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Alphabet Inc. … Below, I've touched on some key aspects you should know on a high level
Simply Wall St - – Full articleAlphabet Inc. (NASDAQ:GOOG.L): Can Growth Justify Its February Share Price?
(NASDAQ:GOOG.L) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of $1122.89 is based on unrealistic expectations. … Let’s look into this by assessing GOOG.L's expected growth over the next few years. … According to the analysts covering the company, the following few years should bring about good growth prospects for Alphabet
Simply Wall St - – Full articleIs It Too Late To Consider Buying Alphabet Inc. (NASDAQ:GOOG.L)?
saw a decent share price growth in the teens level on the NASDAQGS over the last few months. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price … However, what if the stock is still a bargain?
Simply Wall St - – Full articleDo Insiders Own Lots Of Shares In Alphabet Inc. (NASDAQ:GOOG.L)?
Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … We'd expect to see both institutions and retail investors owning a portion of the company. … institutional investors have bought into the company?
Simply Wall St - – Full articleWhat You Need To Know About Alphabet Inc.’s (NASDAQ:GOOG.L) Cash Situation
I’ve analysed below, the health and outlook of Alphabet’s cash flow, which will help you understand the stock from a cash standpoint. … Alphabet’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … The two ways to assess whether Alphabet’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow
Simply Wall St - – Full articleAlphabet Inc. (NASDAQ:GOOG.L) Earns Among The Best Returns In Its Industry
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Simply Wall St - – Full articleWhat Should We Expect From Alphabet Inc's (NASDAQ:GOOG.L) Earnings In The Year Ahead?
After Alphabet Inc's (NASDAQ:GOOG.L) earnings announcement in September 2018, … the consensus outlook from analysts appear highly confident, … as a 72% rise in profits is expected in the upcoming year,
Simply Wall St - – Full articleCalculating The Fair Value Of Alphabet Inc (NASDAQ:GOOG.L)
by taking the expected future cash flows and discounting them to their present value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model
Simply Wall St - – Full articleShould We Be Cautious About Alphabet Inc's (NASDAQ:GOOG.L) ROE Of 11%?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Alphabet has a return on equity of 11% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleHow Has Alphabet Inc's (NASDAQ:GOOG.L) Earnings Fared Against The Long Term Trend
Measuring Alphabet Inc's (NASDAQ:GOOG.L) track record of past performance is an insightful exercise for investors. … Below, I will assess GOOG.L's recent performance announced on 30 June 2018 and compare these figures to its historical trend and industry movements. … GOOG.L's trailing twelve-month earnings (from 30 June 2018) of US$16.31b has
Simply Wall St - – Full articleGOOG.L Company Info
Description
Alphabet Inc. provides online advertising services in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It offers performance and brand advertising services. The company operates through Google and Other Bets segments. The Google segment offers products, such as Ads, Android, Chrome, Google Cloud, Google Maps, Google Play, Hardware, Search, and YouTube, as well as technical infrastructure. This segment also offers digital content, cloud services, hardware devices, and other miscellaneous products and services. The Other Bets segment includes businesses, including Access, Calico, CapitalG, GV, Verily, Waymo, and X, as well as Internet and television services. Alphabet Inc. was founded in 1998 and is headquartered in Mountain View, California.
Details
| Name: | Alphabet Inc. |
| GOOG.L | |
| Exchange: | NasdaqGS |
| Founded: | 1998 |
| $838,790,874,731 | |
| 695,186,396 | |
| Website: | http://www.abc.xyz |
| Address: |
Alphabet Inc. 1600 Amphitheatre Parkway, Mountain View, California, 94043, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | GOOG.L | Class A Common Stock | Nasdaq Global Select | US | USD | 19. Aug 2004 | |
| DB | ABEA | Class A Common Stock | Deutsche Boerse AG | DE | EUR | 19. Aug 2004 | |
| XTRA | ABEA | Class A Common Stock | XETRA Trading Platform | DE | EUR | 19. Aug 2004 | |
| LSE | 0RIH | Class A Common Stock | London Stock Exchange | GB | USD | 19. Aug 2004 | |
| SWX | GOOGL | Class A Common Stock | SIX Swiss Exchange | CH | CHF | 19. Aug 2004 | |
| WBAG | GOOA | Class A Common Stock | Wiener Boerse AG | AT | EUR | 19. Aug 2004 | |
| SNSE | GOOGL | Class A Common Stock | Santiago Stock Exchange | CL | USD | 19. Aug 2004 | |
| BVC | GOOGL | Class A Common Stock | Bolsa de Valores de Colombia | CO | COP | 19. Aug 2004 | |
| BMV | GOOGL * | Class A Common Stock | Bolsa Mexicana de Valores | MX | MXN | 19. Aug 2004 | |
| NasdaqGS | GOOG | Class C Capital Stock | Nasdaq Global Select | US | USD | 27. Mar 2014 | |
| BASE | GOOGL | CEDEAR EACH REPR 1/29 COM STK CL 'A' | Buenos Aires Stock Exchange | AR | ARS | 15. Jan 2014 | |
| DB | ABEC | Class C Capital Stock | Deutsche Boerse AG | DE | EUR | 27. Mar 2014 | |
| XTRA | ABEC | Class C Capital Stock | XETRA Trading Platform | DE | EUR | 27. Mar 2014 | |
| LSE | 0HD6 | Class C Capital Stock | London Stock Exchange | GB | USD | 27. Mar 2014 | |
| BOVESPA | GOGL35 | 25 BDRS REPR 1 NPV C | Bolsa de Valores de Sao Paulo | BR | BRL | 09. May 2016 | |
| BOVESPA | GOGL34 | 25 BDRS REPR 1 NPV A | Bolsa de Valores de Sao Paulo | BR | BRL | 09. May 2016 | |
| BIT | GOOG | Class C Capital Stock | Borsa Italiana | IT | EUR | 27. Mar 2014 | |
| WBAG | GOOC | Class C Capital Stock | Wiener Boerse AG | AT | EUR | 27. Mar 2014 | |
| SNSE | GOOG | Class C Capital Stock | Santiago Stock Exchange | CL | USD | 27. Mar 2014 | |
| BMV | GOOG * | Class C Capital Stock | Bolsa Mexicana de Valores | MX | MXN | 27. Mar 2014 |
Number of employees
Current staff
Industry
| Interactive Media and Services | |
| Media |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/24 23:54 |
| End of day share price update: | 2019/03/22 00:00 |
| Last estimates confirmation: | 2019/03/21 |
| Last earnings filing: | 2019/02/05 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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 here.
