Alphabet Price to Book vs. Return On Equity

GOOG -- USA Stock  

USD 1,187  2.05  0.17%

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 Return On Equity vs. Price to Book Fundamental Analysis

Alphabet is rated below average in price to book category among related companies. It is rated below average in return on equity category among related companies reporting about  2.10  of Return On Equity per Price to Book.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is accounting value of assets minus liabilities.
Alphabet 
P/B 
 = 
MV Per Share 
BV Per Share 
=
5.17 times
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how effecently a company utilizes investments to generate income.
Alphabet 
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
=
10.88 %
For most industries Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Alphabet Return On Equity Comparison

Alphabet is rated below average in return on equity category among related companies.
Alphabet is rated below average in price to book category among related companies.
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