Alphabet Valuation

GOOG Stock  USD 148.48  6.31  4.44%   
At this time, the firm appears to be overvalued. Alphabet Class C shows a prevailing Real Value of $140.74 per share. The current price of the firm is $148.48. Our model approximates the value of Alphabet Class C from analyzing the firm fundamentals such as Return On Equity of 0.27, current valuation of 1.68 T, and Profit Margin of 0.24 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor locking in undervalued instruments and disposing overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Price Book
6.2376
Enterprise Value
1.7 T
Enterprise Value Ebitda
17.1367
Price Sales
5.7298
Forward PE
20.9644
Overvalued
Today
148.48
Please note that Alphabet's price fluctuation is very steady at this time. Calculation of the real value of Alphabet Class C is based on 3 months time horizon. Increasing Alphabet's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Alphabet Class C is useful when determining the fair value of the Alphabet stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Alphabet. Since Alphabet is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Alphabet Stock. However, Alphabet's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  148.48 Real  140.74 Target  135.34 Hype  148.64
The real value of a stock, also known as the intrinsic value, is the underlying worth of a company that is reflected in its stock price. It is based on the company's financial performance, assets, liabilities, growth prospects, management team, industry conditions, and other relevant factors. The real value of a stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, price-to-book ratio, and other valuation metrics. The real value of a stock may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence the stock's price. It is important to note that the real value of a stock is not a fixed number and may change over time based on changes in the company's performance and other relevant factors.
139.01
Downside
140.74
Real Value
163.33
Upside
Estimating the potential upside or downside of Alphabet Class C helps investors to forecast how Alphabet stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Alphabet more accurately as focusing exclusively on Alphabet's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
1.351.501.66
Details
Hype
Prediction
LowEstimatedHigh
146.91148.64150.37
Details
59 Analysts
Consensus
LowTarget PriceHigh
123.16135.34150.23
Details

Alphabet Investments

(25.71 Billion)

Alphabet Valuation Ratios as Compared to Competition

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. You can analyze the relationship between different fundamental ratios across Alphabet competition to find correlations between indicators driving Alphabet's intrinsic value. More Info.
Alphabet Class C is rated # 4 in price to earning category among related companies. It is one of the top stocks in price to book category among related companies fabricating about  0.30  of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Alphabet Class C is roughly  3.31 . The current Price To Book Ratio is estimated to decrease to 6.01. 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.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Alphabet's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Alphabet and how it compares across the competition.

About Alphabet Valuation

The stock valuation mechanism determines the current worth of Alphabet Class C on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Alphabet Class C. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Alphabet Class C based exclusively on its fundamental and basic technical indicators. By analyzing Alphabet's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Alphabet's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Alphabet. We calculate exposure to Alphabet's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Alphabet's related companies.
Last ReportedProjected for 2024
Gross Profit174.1 B182.8 B
Pretax Profit Margin 0.28  0.19 
Operating Profit Margin 0.27  0.18 
Net Profit Margin 0.24  0.14 
Gross Profit Margin 0.57  0.67 

Alphabet Quarterly Retained Earnings

211.25 Billion

8 Steps to conduct Alphabet's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Alphabet's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Alphabet's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Alphabet's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Alphabet's revenue streams: Identify Alphabet's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Alphabet's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Alphabet's growth potential: Evaluate Alphabet's management, business model, and growth potential.
  • Determine Alphabet's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Alphabet's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Alphabet Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Alphabet does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding12.7 B
Quarterly Earnings Growth Y O Y0.56
Forward Price Earnings20.9644

Alphabet Current Valuation Indicators

Valuation refers to the process of determining the present value of Alphabet Class C and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Alphabet we look at many different elements of the entity such as Alphabet's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Alphabet's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Alphabet's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Alphabet, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Alphabet's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Alphabet's worth.
When determining whether Alphabet Class C is a strong investment it is important to analyze Alphabet's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Alphabet's future performance. For an informed investment choice regarding Alphabet Stock, refer to the following important reports:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Alphabet Class C. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in persons.
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Complementary Tools for Alphabet Stock analysis

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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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.