Alphabet Inc.

NasdaqGS:GOOG Stock Report

Market Cap: US$2.1t

Alphabet Valuation

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

Below Fair Value: GOOG ($170.62) is trading below our estimate of fair value ($240.47)

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

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 Ratio22x
EarningsUS$94.27b
Market CapUS$2.06t

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average36.7x
META Meta Platforms
26.1x10.9%US$1.4t
BIDU Baidu
10.4x6.3%US$29.0b
PINS Pinterest
97.1x34.3%US$20.6b
MTCH Match Group
13.2x10.0%US$8.2b
GOOG Alphabet
22x10.9%US$2.1t

Price-To-Earnings vs Peers: GOOG is good value based on its Price-To-Earnings Ratio (22x) compared to the peer average (36.7x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
YALA Yalla Group
5x5.9%US$660.89m
CHR Cheer Holding
0.7xn/aUS$25.30m
MI NFT
4xn/aUS$15.83m
No more companies available in this PE range
GOOG 22.0xIndustry Avg. 22.3xNo. of Companies5PE020406080100+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GOOG is good value based on its Price-To-Earnings Ratio (22x) compared to the US Interactive Media and Services industry average (22.3x).

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 Ratio22x
Fair PE Ratio35.8x

Price-To-Earnings vs Fair Ratio: GOOG is good value based on its Price-To-Earnings Ratio (22x) compared to the estimated Fair Price-To-Earnings Ratio (35.8x).

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.

Discover undervalued companies

Alphabet

US$2.1t

Offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America.

GOOGL

US$169.12

7D

-5.1%

1Y

23.3%

Enthusiast Gaming Holdings

CA$24.6m

An integrated gaming entertainment company, engages in the media, content, entertainment and esports, and subscription businesses in the United States, Canada, England and Wales, and internationally.

EGLX.F

CA$0.10

7D

-22.0%

1Y

-59.9%

Yalla Group

US$660.9m

Operates a social networking and gaming platform primarily in the Middle East and North Africa region.

YALA

US$4.19

7D

-4.3%

1Y

-28.4%