Alphabet
Market Cap
US$964.7b
Last Updated
2020/06/05 12:29 UTC
Data Sources
Company Financials +
Executive Summary
Alphabet Inc. provides online advertising services in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America.
Rewards
PE ratio (28.3x) is below the Interactive Media and Services industry average (29x)
Risk Analysis
Snowflake Analysis
Flawless balance sheet with solid track record.
Similar Companies
Share Price & News
How has Alphabet's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GOOG.L's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-1.3%
GOOG.L
2.2%
US Interactive Media and Services
2.9%
US Market
1 Year Return
32.4%
GOOG.L
32.7%
US Interactive Media and Services
8.9%
US Market
Return vs Industry: GOOG.L matched the US Interactive Media and Services industry which returned 32.7% over the past year.
Return vs Market: GOOG.L exceeded the US Market which returned 8.9% over the past year.
Shareholder returns
| GOOG.L | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.3% | 2.2% | 2.9% |
| 30 Day | 5.1% | 11.5% | 10.6% |
| 90 Day | 9.2% | 15.1% | 5.1% |
| 1 Year | 32.4%32.4% | 32.8%32.7% | 11.4%8.9% |
| 3 Year | 45.8%45.8% | 40.2%40.0% | 34.3%25.4% |
| 5 Year | 158.3%158.3% | 129.0%128.3% | 60.7%42.7% |
Price Volatility Vs. Market
How volatile is Alphabet's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
The Alphabet (NASDAQ:GOOG.L) Share Price Is Up 155% And Shareholders Are Boasting About It3 weeks ago | Simply Wall St
I Ran A Stock Scan For Earnings Growth And Alphabet (NASDAQ:GOOG.L) Passed With Ease1 month ago | Simply Wall St
The Alphabet Inc. (NASDAQ:GOOG.L) First-Quarter Results Are Out And Analysts Have Published New ForecastsValuation
Is Alphabet undervalued compared to its fair value and its price relative to the market?
28.29x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: GOOG.L ($1414.3) is trading above our estimate of fair value ($1332.33)
Significantly Below Fair Value: GOOG.L is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: GOOG.L is good value based on its PE Ratio (28.3x) compared to the Interactive Media and Services industry average (29x).
PE vs Market: GOOG.L is poor value based on its PE Ratio (28.3x) compared to the US market (16.4x).
Price to Earnings Growth Ratio
PEG Ratio: GOOG.L is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: GOOG.L is overvalued based on its PB Ratio (4.7x) compared to the US Interactive Media and Services industry average (2.7x).
Next Steps
Future Growth
How is Alphabet forecast to perform in the next 1 to 3 years based on estimates from 36 analysts?
16.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GOOG.L's forecast earnings growth (16.5% per year) is above the savings rate (2.2%).
Earnings vs Market: GOOG.L's earnings (16.5% per year) are forecast to grow slower than the US market (22.3% per year).
High Growth Earnings: GOOG.L's earnings are forecast to grow, but not significantly.
Revenue vs Market: GOOG.L's revenue (14.7% per year) is forecast to grow faster than the US market (8.8% per year).
High Growth Revenue: GOOG.L's revenue (14.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GOOG.L's Return on Equity is forecast to be low in 3 years time (15.6%).
Next Steps
Past Performance
How has Alphabet performed over the past 5 years?
18.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GOOG.L has high quality earnings.
Growing Profit Margin: GOOG.L's current net profit margins (20.7%) are higher than last year (19.8%).
Past Earnings Growth Analysis
Earnings Trend: GOOG.L's earnings have grown by 18.4% per year over the past 5 years.
Accelerating Growth: GOOG.L's earnings growth over the past year (23%) exceeds its 5-year average (18.4% per year).
Earnings vs Industry: GOOG.L earnings growth over the past year (23%) exceeded the Interactive Media and Services industry -16.7%.
Return on Equity
High ROE: GOOG.L's Return on Equity (17%) is considered low.
Next Steps
Financial Health
How is Alphabet's financial position?
Financial Position Analysis
Short Term Liabilities: GOOG.L's short term assets ($147.0B) exceed its short term liabilities ($40.2B).
Long Term Liabilities: GOOG.L's short term assets ($147.0B) exceed its long term liabilities ($29.6B).
Debt to Equity History and Analysis
Debt Level: GOOG.L's debt to equity ratio (1.9%) is considered satisfactory.
Reducing Debt: GOOG.L's debt to equity ratio has reduced from 6.1% to 1.9% over the past 5 years.
Debt Coverage: GOOG.L's debt is well covered by operating cash flow (1362.9%).
Interest Coverage: GOOG.L earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Alphabet's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate GOOG.L's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate GOOG.L's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if GOOG.L's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if GOOG.L's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of GOOG.L's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.4yrs
Average management tenure
CEO
Sundar Pichai (46yo)
0.50
Tenure
US$280,621,552
Compensation
Mr. Sundar Pichai is Chief Executive Officer at Alphabet Inc. since December, 2019. Mr. Pichai has been the Chief Executive Officer of Google Inc., since October 02, 2015. Mr. Pichai leads the product mana ...
CEO Compensation Analysis
Compensation vs Market: Sundar's total compensation ($USD280.62M) is above average for companies of similar size in the US market ($USD11.52M).
Compensation vs Earnings: Sundar's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.50yr | US$280.62m | 0.016% $158.6m | |
| Co-Founder & Director | 21.75yrs | US$1.00 | 2.92% $28.2b | |
| Co-Founder & Director | 21.75yrs | US$1.00 | 5.63% $54.3b | |
| Senior VP & CFO | 4.67yrs | US$664.05k | 0.0096% $92.6m | |
| Technical Advisor | 2.42yrs | US$3.41m | 1.18% $11.4b | |
| Chief Accounting Officer & VP | 2.17yrs | no data | 0.00014% $1.4m | |
| Vice President of Investor Relations | no data | no data | no data | |
| Head of Project Aura and Vice President | no data | no data | no data | |
| Head of Google X | no data | no data | no data | |
| SVP & Head of Client and Agency - Hotstar | 1.67yrs | no data | no data |
2.4yrs
Average Tenure
46yo
Average Age
Experienced Management: GOOG.L's management team is considered experienced (2.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.50yr | US$280.62m | 0.016% $158.6m | |
| Co-Founder & Director | 21.75yrs | US$1.00 | 2.92% $28.2b | |
| Co-Founder & Director | 21.75yrs | US$1.00 | 5.63% $54.3b | |
| Independent Director | 21.08yrs | US$428.30k | 0.28% $2.7b | |
| Independent Director | 14.58yrs | US$453.30k | 0.00041% $4.0m | |
| Independent Director | 5.92yrs | US$428.30k | 0.00047% $4.5m | |
| Independent Director | 21.67yrs | US$428.30k | 0.043% $410.6m | |
| Chairman & Lead Independent Director | 2.42yrs | US$604.71k | 0.00068% $6.6m | |
| Independent Director | 1.17yrs | US$1.05m | no data | |
| Independent Director | 4yrs | US$428.30k | 0.00024% $2.3m |
10.3yrs
Average Tenure
60.5yo
Average Age
Experienced Board: GOOG.L's board of directors are seasoned and experienced ( 10.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Alphabet Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Alphabet Inc.
- Ticker: GOOG.L
- Exchange: NasdaqGS
- Founded: 1998
- Industry: Interactive Media and Services
- Sector: Media
- Market Cap: US$964.717b
- Shares outstanding: 682.62m
- Website: https://www.abc.xyz
Number of Employees
Location
- Alphabet Inc.
- 1600 Amphitheatre Parkway
- Mountain View
- California
- 94043
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GOOG.L | NasdaqGS (Nasdaq Global Select) | Yes | Class A Common Stock | US | USD | Aug 2004 |
| ABEA | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Aug 2004 |
| GOOGL * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Stock | MX | MXN | Aug 2004 |
| GOOGL | SWX (SIX Swiss Exchange) | Yes | Class A Common Stock | CH | CHF | Aug 2004 |
| ABEA | XTRA (XETRA Trading Platform) | Yes | Class A Common Stock | DE | EUR | Aug 2004 |
| GOOGL | BVC (Bolsa de Valores de Colombia) | Yes | Class A Common Stock | CO | COP | Aug 2004 |
| GOOGL | SNSE (Santiago Stock Exchange) | Yes | Class A Common Stock | CL | USD | Aug 2004 |
| GOOGL | ETLX (Eurotlx) | Yes | Class A Common Stock | IT | EUR | Aug 2004 |
| GOOA | WBAG (Wiener Boerse AG) | Yes | Class A Common Stock | AT | EUR | Aug 2004 |
| 0RIH | LSE (London Stock Exchange) | Yes | Class A Common Stock | GB | USD | Aug 2004 |
| GOOGL | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH REPR 1/29 COM STK CL 'A' | AR | ARS | Jan 2014 | |
| GOOG | NasdaqGS (Nasdaq Global Select) | Class C Capital Stock | US | USD | Mar 2014 | |
| ABEC | DB (Deutsche Boerse AG) | Class C Capital Stock | DE | EUR | Mar 2014 | |
| GOOG * | BMV (Bolsa Mexicana de Valores) | Class C Capital Stock | MX | MXN | Mar 2014 | |
| ABEC | XTRA (XETRA Trading Platform) | Class C Capital Stock | DE | EUR | Mar 2014 | |
| GOOG | SNSE (Santiago Stock Exchange) | Class C Capital Stock | CL | USD | Mar 2014 | |
| GOOC | WBAG (Wiener Boerse AG) | Class C Capital Stock | AT | EUR | Mar 2014 | |
| GOOG | BIT (Borsa Italiana) | Class C Capital Stock | IT | EUR | Mar 2014 | |
| 0HD6 | LSE (London Stock Exchange) | Class C Capital Stock | GB | USD | Mar 2014 | |
| GOOG | BVL (Bolsa de Valores de Lima) | Class C Capital Stock | PE | USD | Mar 2014 | |
| GOGL34 | BOVESPA (Bolsa de Valores de Sao Paulo) | 25 BDRS REPR 1 NPV A | BR | BRL | May 2016 | |
| GOGL35 | BOVESPA (Bolsa de Valores de Sao Paulo) | 25 BDRS REPR 1 NPV C | BR | BRL | May 2016 |
Biography
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. It 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/05 12:29 |
| End of Day Share Price | 2020/06/04 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.