Alphabet Valuation

GOOGL Stock  USD 179.63  3.33  1.89%   
At this time, the firm appears to be undervalued. Alphabet Class A shows a prevailing Real Value of $203.33 per share. The current price of the firm is $179.63. Our model approximates the value of Alphabet Class A from analyzing the firm fundamentals such as Return On Equity of 0.3, current valuation of 2.14 T, and Profit Margin of 0.26 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Alphabet's valuation include:
Price Book
6.922
Enterprise Value
2.1 T
Enterprise Value Ebitda
19.2657
Price Sales
6.4067
Forward PE
23.2019
Undervalued
Today
179.63
Please note that Alphabet's price fluctuation is very steady at this time. Calculation of the real value of Alphabet Class 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.
The fair value of the Alphabet stock is determined by what a typical buyer is willing to pay for full or partial control of Alphabet Inc Class A. 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  179.63 Real  203.33 Target  152.81 Hype  179.63 Naive  182.56
The intrinsic value of Alphabet's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Alphabet's stock price.
161.67
Downside
203.33
Real Value
205.09
Upside
Estimating the potential upside or downside of Alphabet Inc Class 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 (0)
LowProjectedHigh
1.661.842.01
Details
Hype
Prediction
LowEstimatedHigh
177.87179.63181.39
Details
Potential
Annual Dividend
LowForecastedHigh
0.070.070.07
Details
59 Analysts
Consensus
LowTarget PriceHigh
139.06152.81169.62
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.

Alphabet Investments

(25.77 Billion)

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 Inc Class A is one of the top stocks in market capitalization category among its peers. Market capitalization of Communication Services industry is currently estimated at about 2.26 Trillion. Alphabet totals roughly 2.22 Trillion in market capitalization claiming about 98% of stocks in Communication Services industry.
Capitalization  Workforce  Valuation  Revenue  Total debt

Alphabet Total Value Analysis

Alphabet Inc Class A is currently forecasted to have takeover price of 2.14 T with market capitalization of 2.22 T, debt of 28.5 B, and cash on hands of 21.88 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Alphabet fundamentals before making investing decisions based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
2.14 T2.22 T28.5 B21.88 B

Alphabet Investor Information

About 81.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.64. Alphabet Class A recorded earning per share (EPS) of 6.52. The entity last dividend was issued on the 10th of June 2024. The firm had 20:1 split on the 18th of July 2022. 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 174014 people. To learn more about Alphabet Inc Class A call Larry Page at 650 253 0000 or check out https://abc.xyz.

Alphabet Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Alphabet has an asset utilization ratio of 76.39 percent. This suggests that the Company is making $0.76 for each dollar of assets. An increasing asset utilization means that Alphabet Inc Class A is more efficient with each dollar of assets it utilizes for everyday operations.

Alphabet Ownership Allocation

Alphabet holds a total of 5.87 Billion outstanding shares. The majority of Alphabet Inc Class A outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Alphabet Class A to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Alphabet. Please pay attention to any change in the institutional holdings of Alphabet Inc Class A as this could imply that something significant has changed or is about to change at the company. Please note that on May 22, 2024, Representative William R Keating of US Congress acquired under $15k worth of Alphabet Class A's common stock.

Alphabet Profitability Analysis

The company reported the revenue of 307.39 B. Net Income was 73.8 B with profit before overhead, payroll, taxes, and interest of 156.63 B.

Alphabet Past Distributions to stockholders

About Alphabet Valuation

The stock valuation mechanism determines the current worth of Alphabet Inc Class A on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Alphabet Inc Class A. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Alphabet Class 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 Next Year
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

219.77 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's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Alphabet's value is low or high relative to the company's performance and growth projections. Determining the market value of Alphabet can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Alphabet represents a small ownership stake in the entity. As a stockholder of Alphabet, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Alphabet Dividends Analysis For Valuation

Please note that Alphabet has scaled down on payment of dividends at this time. Retained Earnings is expected to rise to about 221.8 B this year, although the value of Retained Earnings Total Equity will most likely fall to about 157.4 B.
There are various types of dividends Alphabet can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Alphabet shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Alphabet Inc Class A directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Alphabet pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Alphabet by the value of the dividends paid out.

Alphabet Growth Indicators

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 Y0.609
Forward Price Earnings23.2019

Alphabet Current Valuation Indicators

Valuation refers to the process of determining the present value of Alphabet Inc Class 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.

Additional Information and Resources on Investing in Alphabet Stock

When determining whether Alphabet Class A 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 Inc Class A. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price.
You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Is Interactive Media & Services space 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
0.609
Earnings Share
6.52
Revenue Per Share
25.374
Quarterly Revenue Growth
0.154
Return On Assets
0.1561
The market value of Alphabet Class 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 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.