Alphabet Stock Valuation

GOOGL
 Stock
  

USD 2,175  4.51  0.21%   

What is the enterprise value of Alphabet? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Alphabet, is its stock price multiplied by the total number of shares outstanding, calculating Alphabet's enterprise value requires a different approach. It uses Alphabet's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Alphabet Free Cash Flow is relatively stable at the moment as compared to the past year. The company's current value of Free Cash Flow is estimated at 72.3 Billion. Enterprise Value is expected to hike to about 2077 B this year, although Tangible Asset Value will most likely fall to nearly 275.9 B.
Alphabet Cl A shows a prevailing Real Value of $2579.63 per share. The current price of the firm is $2174.75. At this time, the firm appears to be undervalued. Our model approximates the value of Alphabet Cl A from analyzing the firm fundamentals such as Current Valuation of 1400 B, profit margin of 27.57 %, and Return On Equity of 30.80 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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Alphabet Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Alphabet's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Alphabet Most Recent Valuation Data

Price Book
6.01
Price Sales
5.33
EBITDA
95.8 B
Beta
1.13
Fiscal Year End
December
Industry
Internet Content & Information
Enterprise Value
1424.9 B
Undervalued
Today 2,175
Please note that Alphabet's price fluctuation is very steady at this time. Calculation of the real value of Alphabet Cl A 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 Cl A 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.
2,580
Real Value
2,582
Upside
Estimating the potential upside or downside of Alphabet Cl A 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 (12)
LowProjected EPSHigh
105.99108.43111.22
Details
Hype
Prediction
LowEstimated ValueHigh
1,9482,1722,175
Details
Naive
Forecast
LowNext ValueHigh
2,1982,2012,203
Details
34 Analysts
Consensus
LowTarget PriceHigh
2,2003,2113,925
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Alphabet's intrinsic value based on its ongoing forecasts of Alphabet's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Alphabet's closest peers. When choosing an evaluation method for Alphabet Cl A, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Alphabet Investments

125.44 Billion

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Alphabet Valuation Drivers Correlation

Many accounts on the financial statements of Alphabet Cl A are highly interrelated and sometimes correlated. Consequently, when conducting Alphabet's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Alphabet
Click cells to compare fundamentals

Alphabet Valuation Trend

Knowing Alphabet's actual value is paramount for traders to make sound investment determinations. Alphabet's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Alphabet's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Alphabet's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Alphabet Market Cap

Alphabet Cl A is one of the top stocks in market capitalization category among related companies. Market capitalization of Internet Content & Information industry is currently estimated at about 3.44 Trillion. Alphabet totals roughly 1.48 Trillion in market capitalization claiming about 43% of equities under Internet Content & Information industry.
Capitalization  Revenue  Valuation  Total debt  Workforce

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 Cl A is one of the top stocks 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  0.28  of Price to Book per Price to Earning. The ratio of Price to Earning to Price to Book for Alphabet Cl A is roughly  3.55 . The Price to Book Value is projected to pull down to 6.62. 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 equity valuation mechanism determines the current worth of Alphabet Cl A on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Alphabet Cl A. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Alphabet Cl A 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 2022
Gross Profit146.7 B158.3 B
Profit Margin 0.29  0.28 
Alphabet Inc. provides various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. The company was founded in 1998 and is headquartered in Mountain View, California. Alphabet operates under Internet Content Information classification in the United States and is traded on NASDAQ Exchange. It employs 163906 people.

Alphabet Quarterly Enterprise Value

1.84 Trillion

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Alphabet Valuation Growth Rates

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.
Quick Ratio2.74
Earnings Quarterly Growth-8.30%
Revenue Growth23.00%
Enterprise Value To Ebitda14.58
Earnings Growth-6.30%
Enterprise Value To Revenue5.17

Alphabet Current Valuation Indicators

Valuation refers to the process of determining the present value of Alphabet Cl A 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.
Please check Risk vs Return Analysis. Note that the Alphabet Cl A information on this page should be used as a complementary analysis to other Alphabet's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

Complementary Tools for Alphabet Stock analysis

When running Alphabet Cl A 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 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 YOY
-0.063
Market Capitalization
1439.6 B
Quarterly Revenue Growth YOY
0.23
Return On Assets
0.15
Return On Equity
0.31
The market value of Alphabet Cl A 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 Alphabet value 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.