Alphabet Price to Earning vs. Beta

GOOG -- USA Stock  

USD 1,238  2.60  0.21%

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 Beta vs. Price to Earning Fundamental Analysis

Alphabet is rated below average in price to earning category among related companies. It is rated below average in beta category among related companies totaling about  0.02  of Beta per Price to Earning. The ratio of Price to Earning to Beta for Alphabet is roughly  42.09 
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investor monitor on a daily basis. Holding a low PE stock is less risky because. When a company's profitability fall, it is likely that earnings will also go down..In other words, if you start from a lower position your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Alphabet 
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
=
53.45 times
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of financial instrument to the financial market in which this instrument is traded. For example if Beta of equity is 2, it will be expected to significantly outperform market when market is going up and significantly underperform when market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns during over time.
Alphabet 
Beta 
 = 
Covariance 
Variance 
=
1.27
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

Alphabet Beta Comparison

  Beta 
      Alphabet Comparables 
Alphabet is rated below average in beta category among related companies.
Alphabet is rated # 5 in price to earning category among related companies.

Beta Analysis

As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Alphabet will likely underperform.