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GOOGL Alphabet Inc. - Fundamental Analysis

NEUTRAL
GOOGL Stock | Fundamental Analysis & Investment Insights
NASDAQ Communication Services Internet Content & Information
Current Price
$315.15
Analyst Target
$330.24
+4.8% Upside
52W High
$328.83
52W Low
$140.53

At a glance

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AI Analysis

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Confidence Score
78%
Analysis Accuracy
The Advanced Deterministic Scorecard shows a weak Piotroski F-Score of 4/9, indicating borderline financial health, while the Altman Z-Score is astronomically high at 5.45 trillion, signaling no distress risk. Despite strong profitability and growth metrics—such as 35.3% YoY earnings growth and ROE of 35.45%—the stock trades at a premium valuation with a P/E of 31.14 versus sector average of 20.12. Insider selling activity and a low technical trend score of 10/100 suggest near-term caution, even as analysts maintain a strong_buy consensus. The current price of $315.15 is above the Graham Number of $85.40 but below the intrinsic value estimate of $298.54, implying modest overvaluation relative to fundamentals.

Key Strengths

Exceptional profitability with ROE of 35.45% and net margin of 32.23%, well above sector averages
Strong revenue and earnings growth: 15.9% YoY revenue growth and 35.3% YoY earnings growth
Extremely low financial distress risk with Altman Z-Score >5 trillion, far above the 3.0 safety threshold
Low leverage with Debt/Equity ratio of 0.11, providing significant balance sheet flexibility
Consistent earnings beat streak: 3 out of last 4 quarters beat estimates, with an average surprise of 24.02%

Key Risks

Weak Piotroski F-Score of 4/9 suggests deteriorating financial health across multiple fundamental criteria
Rich valuation: P/E of 31.14 is significantly above sector average of 20.12, increasing vulnerability to multiple contraction
Bearish insider sentiment: recent director-level selling totaling $11.57M with no buy transactions in 6 months
Low technical trend score of 10/100 indicates negative price momentum despite strong fundamentals
Dividend profile is weak with a yield of only 0.27% and dividend strength score of 25/100
AI Fair Value Estimate
Based on comprehensive analysis
$295.0
-6.4% below current price

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Sector Comparison & Peer Analysis

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