Alphabet Operating Margin vs. Book Value Per Share

    GOOG -- USA Stock  

    USD 1,199  26.58  2.27%

    The Drivers Module shows relationships between Alphabet's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Alphabet over time as well as its relative position and ranking within its peers. Please also check Risk vs Return Analysis.

    Alphabet Book Value Per Share vs. Operating Margin Fundamental Analysis

    Alphabet is one of the top stocks in operating margin category among related companies. It is one of the top stocks in book value per share category among related companies creating about  7.39  of Book Value Per Share per Operating Margin.
    Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
    Alphabet 
    Operating Margin 
     = 
    Operating Income 
    Revenue 
    X
    100 
    =
    31.31 %
    A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.
    Book Value per Share (B/S) is can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing effects of liabilities. In other words a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of liquidation.
    Alphabet 
    Book Value per Share 
     = 
    Common Equity 
    Average Shares 
    =
    231.42 times
    The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as good will, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.

    Alphabet Book Value Per Share Comparison

      Book Value Per Share 
          Alphabet Comparables 
    Alphabet is currently under evaluation in book value per share category among related companies.
      Operating Margin 
          Alphabet Comparables 
    Alphabet is currently under evaluation in operating margin category among related companies.