Alphabet Valuation
| GOOGL Stock | USD 163.38 1.60 0.99% |
At this time, the firm appears to be fairly valued. Alphabet Class A shows a prevailing Real Value of $160.94 per share. The current price of the firm is $163.38. Our model approximates the value of Alphabet Class A from analyzing the firm fundamentals such as Profit Margin of 0.27 %, return on equity of 0.31, and Current Valuation of 1.93 T as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Alphabet's valuation include:
Price Book 6.6218 | Enterprise Value 1.9 T | Enterprise Value Ebitda 16.6998 | Price Sales 6.0966 | Forward PE 21.0526 |
Fairly Valued
Today
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 163.38 | Real 160.94 | Target 152.81 | Hype 163.44 | Naive 158.44 |
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.
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: 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 Cash |
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Alphabet Valuation Trend
Knowing Alphabet's actual value is paramount for traders when making sound investment determinations. Using both Alphabet's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Alphabet Revenue by Product
Alphabet Total Value Analysis
Alphabet Inc Class A is currently forecasted to have takeover price of 1.93 T with market capitalization of 2 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 Price | Market Cap | Debt Obligations | Cash |
1.93 T | 2 T | 28.5 B | 21.88 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 1.24. Alphabet Class A recorded earning per share (EPS) of 6.97. The entity last dividend was issued on the 9th of September 2024. The firm had 20:1 split on the 18th of July 2022. Based on the key indicators related to Alphabet's liquidity, profitability, solvency, and operating efficiency, Alphabet Inc Class A may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 106.8 B | 101.7 B |
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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 5.86 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 August 16, 2024, Representative Kathy Manning 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
We use absolute and 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 their related drivers, we attempt to find the most accurate representation of Alphabet's intrinsic value. 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, and relevant financial multiples and ratios and then compare them to those of Alphabet's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 174.1 B | 182.8 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 |
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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 Outstanding | 12.7 B | |
| Quarterly Earnings Growth Y O Y | 0.314 | |
| Forward Price Earnings | 21.0526 |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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 0.314 | Dividend Share 0.2 | Earnings Share 6.97 | Revenue Per Share 26.353 | Quarterly Revenue Growth 0.136 |
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.