Alphabet Earnings Per Share vs. Profit Margin
| GOOG Stock | USD 156.33 2.86 1.80% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.67 | 0.5663 |
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For Alphabet profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alphabet to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alphabet Inc Class C utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alphabet's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alphabet Inc Class C over time as well as its relative position and ranking within its peers.
Alphabet |
Is Alphabet's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alphabet. If investors know Alphabet will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alphabet listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.56 | Earnings Share 5.8 | Revenue Per Share 24.338 | Quarterly Revenue Growth 0.135 | Return On Assets 0.1437 |
The market value of Alphabet Class C is measured differently than its book value, which is the value of Alphabet that is recorded on the company's balance sheet. Investors also form their own opinion of Alphabet's value that differs from its market value or its book value, called intrinsic value, which is Alphabet's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alphabet's market value can be influenced by many factors that don't directly affect Alphabet's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Alphabet's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alphabet is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alphabet's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Alphabet Class C Profit Margin vs. Earnings Per Share Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Alphabet's current stock value. Our valuation model uses many indicators to compare Alphabet value to that of its competitors to determine the firm's financial worth. Alphabet Inc Class C is one of the top stocks in earnings per share category among related companies. It is one of the top stocks in profit margin category among related companies fabricating about 0.04 of Profit Margin per Earnings Per Share. The ratio of Earnings Per Share to Profit Margin for Alphabet Inc Class C is roughly 24.16 . At this time, Alphabet's Net Profit Margin is most likely to increase slightly in the upcoming years.Comparative valuation analysis is a catch-all model that can be used if you cannot value Alphabet by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Alphabet's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Alphabet's earnings, one of the primary drivers of an investment's value.Alphabet Profit Margin vs. Earnings Per Share
Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
Alphabet |
| = | 5.80 X |
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Alphabet |
| = | 0.24 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Alphabet Profit Margin Comparison
Alphabet is currently under evaluation in profit margin category among related companies.
Alphabet Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Alphabet, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Alphabet will eventually generate negative long term returns. The profitability progress is the general direction of Alphabet's change in net profit over the period of time. It can combine multiple indicators of Alphabet, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -4.4 B | -4.2 B | |
| Operating Income | 84.3 B | 88.5 B | |
| Income Before Tax | 85.7 B | 90 B | |
| Total Other Income Expense Net | -2.1 B | -2 B | |
| Net Income | 73.8 B | 77.5 B | |
| Income Tax Expense | 11.9 B | 12.5 B | |
| Net Income From Continuing Ops | 73.8 B | 41.5 B | |
| Net Income Applicable To Common Shares | 69 B | 38.9 B | |
| Interest Income | 3.9 B | 2 B | |
| Non Operating Income Net Other | -4 B | -3.8 B | |
| Net Interest Income | 3.6 B | 2 B | |
| Change To Netincome | 14.2 B | 10.8 B | |
| Net Income Per Share | 5.84 | 6.13 | |
| Income Quality | 1.38 | 1.89 | |
| Net Income Per E B T | 0.86 | 0.60 |
Alphabet Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Alphabet. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Alphabet position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Alphabet's important profitability drivers and their relationship over time.
Use Alphabet in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Alphabet position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alphabet will appreciate offsetting losses from the drop in the long position's value.Alphabet Pair Trading
Alphabet Inc Class C Pair Trading Analysis
The ability to find closely correlated positions to Alphabet could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alphabet when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Alphabet - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Alphabet Inc Class C to buy it.
The correlation of Alphabet is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Alphabet moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alphabet Class C moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Alphabet can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Alphabet position
In addition to having Alphabet in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Long/short ETFs Thematic Idea Now
Long/short ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Long/short ETFs theme has 22 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Long/short ETFs Theme or any other thematic opportunities.
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When running Alphabet's price analysis, check to measure Alphabet's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alphabet is operating at the current time. Most of Alphabet's value examination focuses on studying past and present price action to predict the probability of Alphabet's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alphabet's price. Additionally, you may evaluate how the addition of Alphabet to your portfolios can decrease your overall portfolio volatility.
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To fully project Alphabet's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Alphabet Class C at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Alphabet's income statement, its balance sheet, and the statement of cash flows.