Alphabet Inc.

NasdaqGS:GOOGL Stock Report

Market Cap: US$2.1t

Alphabet Valuation

Is GOOGL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: GOOGL ($175.3) is trading below our estimate of fair value ($238.7)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GOOGL?

Key metric: As GOOGL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GOOGL. This is calculated by dividing GOOGL's market cap by their current earnings.
What is GOOGL's PE Ratio?
PE Ratio22.8x
EarningsUS$94.27b
Market CapUS$2.12t

Price to Earnings Ratio vs Peers

How does GOOGL's PE Ratio compare to its peers?

The above table shows the PE ratio for GOOGL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.8x
META Meta Platforms
25.2x10.9%US$1.4t
BIDU Baidu
11.1x7.2%US$29.7b
PINS Pinterest
90.8x34.4%US$19.1b
MTCH Match Group
12.3x10.0%US$7.7b
GOOGL Alphabet
22.8x10.9%US$2.1t

Price-To-Earnings vs Peers: GOOGL is good value based on its Price-To-Earnings Ratio (22.8x) compared to the peer average (34.8x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CHR Cheer Holding
0.8xn/aUS$26.95m
MI NFT
2.2xn/aUS$13.47m
No more companies available in this PE range
GOOGL 22.8xIndustry Avg. 22.8xNo. of Companies5PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GOOGL is expensive based on its Price-To-Earnings Ratio (22.8x) compared to the US Interactive Media and Services industry average (22.8x).

Price to Earnings Ratio vs Fair Ratio

What is GOOGL'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.

GOOGL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.8x
Fair PE Ratio35.9x

Price-To-Earnings vs Fair Ratio: GOOGL is good value based on its Price-To-Earnings Ratio (22.8x) compared to the estimated Fair Price-To-Earnings Ratio (35.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst GOOGL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$175.30
US$209.70
+19.6%
7.4%US$240.00US$151.00n/a48
Nov ’25US$171.29
US$209.14
+22.1%
7.7%US$240.00US$151.00n/a48
Oct ’25US$166.99
US$202.48
+21.3%
7.5%US$230.00US$151.00n/a48
Sep ’25US$163.38
US$204.71
+25.3%
7.3%US$230.00US$151.00n/a45
Aug ’25US$170.76
US$204.04
+19.5%
7.6%US$230.00US$151.00n/a45
Jul ’25US$182.99
US$194.56
+6.3%
9.9%US$230.00US$143.00n/a45
Jun ’25US$172.50
US$193.29
+12.1%
9.7%US$230.00US$143.00n/a46
May ’25US$163.86
US$188.26
+14.9%
10.8%US$225.00US$143.00n/a46
Apr ’25US$155.49
US$164.48
+5.8%
6.0%US$180.00US$143.00n/a45
Mar ’25US$137.14
US$163.66
+19.3%
5.9%US$180.00US$141.00n/a46
Feb ’25US$141.16
US$162.64
+15.2%
6.5%US$180.00US$140.00n/a44
Jan ’25US$139.69
US$154.63
+10.7%
6.8%US$180.00US$129.00n/a43
Dec ’24US$131.86
US$153.49
+16.4%
6.7%US$180.00US$129.00n/a43
Nov ’24US$126.45
US$153.44
+21.3%
6.7%US$180.00US$126.00US$171.2943
Oct ’24US$130.86
US$151.14
+15.5%
8.3%US$200.00US$121.00US$166.9943
Sep ’24US$135.66
US$150.09
+10.6%
8.6%US$200.00US$121.00US$163.3845
Aug ’24US$131.55
US$149.16
+13.4%
8.9%US$200.00US$121.00US$170.7643
Jul ’24US$119.70
US$132.34
+10.6%
8.6%US$160.00US$115.00US$182.9941
Jun ’24US$123.72
US$131.60
+6.4%
8.6%US$160.00US$115.00US$172.5040
May ’24US$107.20
US$130.74
+22.0%
8.7%US$160.00US$104.70US$163.8643
Apr ’24US$103.73
US$128.77
+24.1%
10.4%US$160.00US$93.22US$155.4944
Mar ’24US$90.36
US$128.36
+42.0%
11.2%US$160.00US$93.22US$137.1442
Feb ’24US$100.43
US$126.01
+25.5%
11.0%US$160.00US$93.00US$141.1641
Jan ’24US$88.23
US$127.36
+44.3%
13.1%US$186.00US$93.00US$139.6940
Dec ’23US$100.99
US$128.86
+27.6%
13.3%US$186.00US$93.00US$131.8640
Nov ’23US$90.47
US$131.53
+45.4%
12.9%US$186.00US$98.00US$126.4540

Analyst Forecast: Target price is less than 20% higher than the current share price.

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