Alphabet (NasdaqGS:GOOGL) - Share price, News & Analysis

GOOGL fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	6/6
Financial Health	5/6
Dividends	0/6

GOOGL Stock Overview

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

Rewards

Trading at 53.2% below our estimate of its fair value

Earnings are forecast to grow 14.02% per year

Earnings grew by 45.1% over the past year

Risk Analysis

No risks detected for GOOGL from our risk checks.

Alphabet Competitors

Yandex

NasdaqGS:YNDX

US$577.2b

Meta Platforms

NasdaqGS:FB

US$497.5b

Twitter

NYSE:TWTR

US$28.3b

Snap

NYSE:SNAP

US$23.2b

Price History & Performance

Summary of all time highs, changes and price drops for Alphabet
Historical stock prices
Current Share Price	US$2,116.10
52 Week High	US$3,030.93
52 Week Low	US$2,037.69
Beta	1.13
1 Month Change	-14.03%
3 Month Change	-20.26%
1 Year Change	-11.10%
3 Year Change	88.95%
5 Year Change	114.38%
Change since IPO	4,118.07%

Recent News & Updates

May 26

Google: Big Value In Big Tech

Google’s stock has strong upside based on the continuing impact of digital transformation post the COVID-19 pandemic and more. Google’s business continues to surpass already elevated pandemic levels. The company’s revenue rose 23% year-over-year (YoY) in 1Q22, while its Core Earnings rose 24%. Even after such strong outperformance, the stock has another 53%+ upside while the index looks weaker by the day.

May 18

Alphabet (NASDAQ:GOOGL) Is Very Good At Capital Allocation

If you're looking for a multi-bagger, there's a few things to keep an eye out for. In a perfect world, we'd like to see...

May 10

Riding The Stock Waves: Technical Update On Google

Relative valuation is cheap. P/E multiple has pulled back to levels beneath mature consumer staples. Alphabet has one of the best balance sheets among stocks. Revenue continues to grow. The technical structure is supportive of another significant rally.

Shareholder Returns

	GOOGL	US Interactive Media and Services	US Market
7D	-5.4%	-4.4%	1.0%
1Y	-11.1%	-46.3%	-15.1%

Return vs Industry: GOOGL exceeded the US Interactive Media and Services industry which returned -28% over the past year.

Return vs Market: GOOGL exceeded the US Market which returned -13.2% over the past year.

Price Volatility

Is GOOGL's price volatile compared to industry and market?
GOOGL volatility
GOOGL Average Weekly Movement	5.4%
Interactive Media and Services Industry Average Movement	12.0%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: GOOGL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GOOGL's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1998	163,906	Sundar Pichai	https://www.abc.xyz

Alphabet Inc. provides various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment offers products and services, including ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube.

Alphabet Fundamentals Summary

How do Alphabet's earnings and revenue compare to its market cap?
GOOGL fundamental statistics
Market Cap	US$1.39t
Earnings (TTM)	US$74.54b
Revenue (TTM)	US$270.33b

18.7x

P/E Ratio

5.2x

P/S Ratio

Is GOOGL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GOOGL income statement (TTM)
Revenue	US$270.33b
Cost of Revenue	US$116.44b
Gross Profit	US$153.90b
Other Expenses	US$79.36b
Earnings	US$74.54b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	113.20
Gross Margin	56.93%
Net Profit Margin	27.57%
Debt/Equity Ratio	5.1%

How did GOOGL perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: GOOGL ($2116.1) is trading below our estimate of fair value ($4519.77)

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

Price To Earnings Ratio

PE vs Industry: GOOGL is good value based on its Price-To-Earnings Ratio (18.7x) compared to the US Interactive Media and Services industry average (34.4x).

PE vs Market: GOOGL is poor value based on its Price-To-Earnings Ratio (18.7x) compared to the US market (14.9x).

Price to Earnings Growth Ratio

PEG Ratio: GOOGL is poor value based on its PEG Ratio (1.3x)

Price to Book Ratio

PB vs Industry: GOOGL is overvalued based on its Price-To-Book Ratio (5.5x) compared to the US Interactive Media and Services industry average (1.6x).

Future Growth

How is Alphabet forecast to perform in the next 1 to 3 years based on estimates from 41 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

14.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GOOGL's forecast earnings growth (14% per year) is above the savings rate (1.9%).

Earnings vs Market: GOOGL's earnings (14% per year) are forecast to grow faster than the US market (12.1% per year).

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

Revenue vs Market: GOOGL's revenue (12.9% per year) is forecast to grow faster than the US market (7.7% per year).

High Growth Revenue: GOOGL's revenue (12.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: GOOGL's Return on Equity is forecast to be high in 3 years time (28.1%)

Past Performance

How has Alphabet performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

31.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GOOGL has high quality earnings.

Growing Profit Margin: GOOGL's current net profit margins (27.6%) are higher than last year (26.1%).

Past Earnings Growth Analysis

Earnings Trend: GOOGL's earnings have grown significantly by 31.5% per year over the past 5 years.

Accelerating Growth: GOOGL's earnings growth over the past year (45.1%) exceeds its 5-year average (31.5% per year).

Earnings vs Industry: GOOGL earnings growth over the past year (45.1%) exceeded the Interactive Media and Services industry -36.9%.

Return on Equity

High ROE: GOOGL's Return on Equity (29.3%) is considered high.

Financial Health

How is Alphabet's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GOOGL's short term assets ($177.9B) exceed its short term liabilities ($61.9B).

Long Term Liabilities: GOOGL's short term assets ($177.9B) exceed its long term liabilities ($41.1B).

Debt to Equity History and Analysis

Debt Level: GOOGL has more cash than its total debt.

Reducing Debt: GOOGL's debt to equity ratio has increased from 2.4% to 5.1% over the past 5 years.

Debt Coverage: GOOGL's debt is well covered by operating cash flow (758.7%).

Interest Coverage: GOOGL 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 Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate GOOGL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GOOGL'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 GOOGL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GOOGL's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GOOGL has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure

CEO

Sundar Pichai (48 yo)

2.42yrs

Tenure

US$6,322,599

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 ($USD6.32M) is below average for companies of similar size in the US market ($USD13.26M).

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

Leadership Team

Experienced Management: GOOGL's management team is seasoned and experienced (5.4 years average tenure).

Board Members

Experienced Board: GOOGL's board of directors are seasoned and experienced ( 16.5 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31