NasdaqGS:GOOG.L

Stock Analysis Report

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Market Cap

US$1.8t

Last Updated

2021/07/31 22:47 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. More Details


Snowflake Analysis

Outstanding track record with excellent balance sheet.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: GOOG.L's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.3%

GOOG.L

-0.9%

US Interactive Media and Services

-0.5%

US Market


1 Year Return

81.1%

GOOG.L

64.0%

US Interactive Media and Services

35.9%

US Market

Return vs Industry: GOOG.L exceeded the US Interactive Media and Services industry which returned 63.1% over the past year.

Return vs Market: GOOG.L exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

GOOG.LIndustryMarket
7 Day1.3%-0.9%-0.5%
30 Day10.0%4.9%0.09%
90 Day14.5%10.3%3.2%
1 Year81.1%81.1%64.4%64.0%38.0%35.9%
3 Year117.6%117.6%99.5%99.2%62.8%52.6%
5 Year233.9%233.9%192.3%191.8%121.2%96.9%

Long-Term 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

Valuation

Is Alphabet undervalued compared to its fair value and its price relative to the market?

38.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GOOG.L ($2694.53) is trading below our estimate of fair value ($4373.81)

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


Price To Earnings Ratio

PE vs Industry: GOOG.L is good value based on its PE Ratio (28.9x) compared to the US Interactive Media and Services industry average (33.7x).

PE vs Market: GOOG.L is poor value based on its PE Ratio (28.9x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: GOOG.L is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: GOOG.L is overvalued based on its PB Ratio (7.6x) compared to the US Interactive Media and Services industry average (3.4x).


Future Growth

How is Alphabet forecast to perform in the next 1 to 3 years based on estimates from 37 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GOOG.L's forecast earnings growth (12.1% per year) is above the savings rate (2%).

Earnings vs Market: GOOG.L's earnings (12.1% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: GOOG.L's earnings are forecast to grow, but not significantly.

Revenue vs Market: GOOG.L's revenue (14% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: GOOG.L's revenue (14% 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 high in 3 years time (26.2%)


Past Performance

How has Alphabet performed over the past 5 years?

24.3%

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 (28.6%) are higher than last year (19%).


Past Earnings Growth Analysis

Earnings Trend: GOOG.L's earnings have grown significantly by 24.3% per year over the past 5 years.

Accelerating Growth: GOOG.L's earnings growth over the past year (99.6%) exceeds its 5-year average (24.3% per year).

Earnings vs Industry: GOOG.L earnings growth over the past year (99.6%) exceeded the Interactive Media and Services industry 65.6%.


Return on Equity

High ROE: GOOG.L's Return on Equity (26.5%) is considered high.


Financial Health

How is Alphabet's financial position?


Financial Position Analysis

Short Term Liabilities: GOOG.L's short term assets ($175.7B) exceed its short term liabilities ($55.7B).

Long Term Liabilities: GOOG.L's short term assets ($175.7B) exceed its long term liabilities ($42.1B).


Debt to Equity History and Analysis

Debt Level: GOOG.L's debt to equity ratio (5.4%) is considered satisfactory.

Reducing Debt: GOOG.L's debt to equity ratio has increased from 4.6% to 5.4% over the past 5 years.

Debt Coverage: GOOG.L's debt is well covered by operating cash flow (629.9%).

Interest Coverage: GOOG.L earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Alphabet 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?

4.5yrs

Average management tenure


CEO

Sundar Pichai (48 yo)

1.58yrs

Tenure

US$7,425,547

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 manag...


CEO Compensation Analysis

Compensation vs Market: Sundar's total compensation ($USD7.43M) is below average for companies of similar size in the US market ($USD11.17M).

Compensation vs Earnings: Sundar's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GOOG.L's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: GOOG.L's board of directors are considered experienced (7 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$1.800t
  • Shares outstanding: 666.75m
  • Website: https://www.abc.xyz

Number of Employees


Location

  • Alphabet Inc.
  • 1600 Amphitheatre Parkway
  • Mountain View
  • California
  • 94043
  • United States

Listings


Biography

Alphabet Inc. provides online advertising services in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. The company offers performance and brand advertising s...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 22:47
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.