Alphabet (GOOGL) Valuation Check After Recent Share Price Gains

Alphabet stock: steady gains invite a closer look

Alphabet (GOOGL) has quietly added about 4% over the past month and roughly 23% in the past 3 months, enough to make long term investors ask whether this climb still has room to run.

See our latest analysis for Alphabet.

Those gains sit on top of a powerful backdrop. The share price is up strongly year to date, and the one year total shareholder return is also robust, signaling that momentum is still very much intact around Alphabet’s growth story and perceived resilience.

If Alphabet’s run has you curious about what else is working in tech, it is a good moment to explore other high growth tech and AI names via high growth tech and AI stocks.

With the stock hovering near analyst targets after a powerful multi year run and double digit revenue and profit growth, investors now face the key question: is Alphabet still undervalued or is future growth largely priced in?

Most Popular Narrative Narrative: 8.9% Undervalued

According to oscargarcia, Alphabet’s recent close of $309.78 still sits below a higher long term fair value, hinting at upside if its growth engine keeps compounding.

Alphabet is a compounding machine hiding under an ad empire. With AI monetization finally catching fire, Cloud turning profitable, and more YouTube monetization coming, this isn’t just a “big tech stock”, it’s an innovation platform priced like a mature business.

Read the complete narrative.

Curious how a modest discount rate and ambitious profit margins combine with sustained revenue growth to justify a richer future earnings multiple, but not sure what assumptions really drive that target, or how long the market might take to close the gap? Dig into the full story behind this valuation call.

Result: Fair Value of $340.00 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, regulatory pressure or a sharper than expected shift in AI driven search behavior could compress multiples and challenge the undervaluation thesis.

Find out about the key risks to this Alphabet narrative.

Another View: Market Ratios Flash a Different Signal

Our valuation checks using a single earnings based ratio tell a more cautious story. Alphabet trades at 30.1 times earnings, far above the industry’s 16.8 times but below peer averages of 49.9 times. Our fair ratio sits higher at 37.3 times, suggesting upside with clear multiple risk.

See what the numbers say about this price — find out in our valuation breakdown.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Alphabet for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 898 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Alphabet Narrative

If you see the numbers differently or simply prefer to test your own assumptions, you can build a personalized view in just minutes, starting with Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Alphabet.

Ready for more high conviction ideas beyond Alphabet?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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