GOOGL Alphabet Inc. - Fundamental Analysis
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GOOGL Stock | Fundamental Analysis & Investment Insights
NASDAQ
Communication Services
Internet Content & Information
Current Price
Live
$330.0
Analyst Target
$339.15
+2.8%
Upside
52W High
$340.49
52W Low
$140.53
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 17, 2026
Market cap
$4.0T
P/E
32.61
ROE
35.4%
Profit margin
32.2%
Debt/Equity
0.11
Dividend yield
0.25%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
The Advanced Deterministic Scorecard reveals a mixed health profile with a weak Piotroski F-Score of 4/9, indicating marginal financial stability despite strong profitability and growth metrics. Alphabet's robust ROE of 35.45%, high profit margins, and impressive YoY earnings growth of 35.3% underscore its operational strength, while the lack of Altman Z-Score prevents a full solvency risk assessment. However, stretched valuation multiples—P/E of 32.61 versus sector average of 22.12—and bearish insider activity counterbalance the bullish analyst consensus of 'strong_buy'. The stock trades well above the Graham Number of $85.4, reflecting premium pricing driven by growth expectations rather than defensive value.
Key Strengths
Exceptional profitability with ROE of 35.45% and net margin of 32.23%
Strong revenue and earnings growth: 15.9% YoY revenue growth and 35.3% YoY EPS growth
Low leverage with Debt/Equity ratio of just 0.11, well below sector average of 1.22
Consistently beats earnings estimates, with 3 out of last 4 quarters exceeding expectations and an average surprise of 24.22%
High return on invested capital implied by strong ROA (16.28%) and ROIC proxy metrics
Key Risks
Weak Piotroski F-Score of 4/9 suggests deteriorating financial health signals in key accruals, liquidity, or leverage trends
Valuation appears stretched: P/E of 32.61 significantly above sector average of 22.12 and near peer highs
Bearish insider sentiment with $5.33M in net selling and no insider buys in the last 6 months
Technical trend score of 10/100 indicates strong bearish momentum despite strong fundamentals
Missing key financial data (EV, shares outstanding, cash/debt, FCF) limits full financial health verification
AI Fair Value Estimate
Based on comprehensive analysis
$298.54
-9.5% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
57
Moderate
45
80
70
58
30
AI Verdict
Moderately positive with caution due to valuation and technical headwinds
Key drivers: High profitability and growth, Low debt and strong margins, Rich valuation and weak technicals, Low Piotroski score, Bullish analyst sentiment
Confidence
75%
Value
45/100
Ref P/E, PEG, Graham Number
Positives
- Intrinsic Value (Formula) of $298.54 provides support above Graham Number
Watchpoints
- Current price ($330) trades at a 10.5% premium to Intrinsic Value
- P/E of 32.61 and Price/Book of 10.30 are elevated vs sector
Future
80/100
Ref Growth rates
Positives
- YoY EPS growth of 35.3% and revenue growth of 15.9%
- Forward P/E of 29.25 implies continued growth expectations
- Consistent earnings beat trend with strong surprise momentum
Watchpoints
No urgent risks highlighted.
Past
70/100
Ref Historical trends
Positives
- 5-year price return of +272.6% shows exceptional long-term performance
- History of beating earnings estimates in 18 of last 25 quarters
Watchpoints
- Two consecutive earnings misses in late 2022, and one recent miss in Q1 2023
Health
58/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Current Ratio of 1.75 and Quick Ratio of 1.56 indicate solid short-term liquidity
- Debt/Equity of 0.11 reflects minimal leverage risk
Watchpoints
- Piotroski F-Score of 4/9 indicates weak financial health signals
- Missing Altman Z-Score prevents full distress risk evaluation
Dividend
30/100
Ref Yield, Payout
Positives
- Low payout ratio of 8.09% allows room for future increases
Watchpoints
- Dividend yield of 0.25% is negligible for income investors
- Dividend Strength score of 25/100 reflects minimal income appeal
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$330.0
Analyst Target
$339.15
Upside/Downside
+2.8%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for GOOGL and closest competitors.
Updated 2026-01-16
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
GOOGL
Alphabet Inc.
Primary
|
+272.6% | +264.2% | +71.7% | +78.6% | +11.2% | +0.4% |
|
GOOG
Alphabet Inc.
Peer
|
+271.7% | +261.1% | +70.6% | +77.9% | +10.8% | +0.4% |
|
META
Meta Platforms, Inc.
Peer
|
+139.2% | +361.4% | +1.8% | -11.8% | -4.5% | -5.0% |
|
NFLX
Netflix, Inc.
Peer
|
+75.4% | +169.8% | +4.5% | -27.2% | -7.2% | -1.6% |
|
TMUS
T-Mobile US, Inc.
Peer
|
+48.5% | +31.2% | -12.3% | -17.3% | -6.5% | -7.1% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
32.61
Forward P/E
29.25
PEG Ratio
N/A
P/B Ratio
10.3
P/S Ratio
10.37
EV/Revenue
10.28
EV/EBITDA
27.29
Market Cap
$4.0T
Profitability
Profit margins and return metrics
Profit Margin
32.23%
Operating Margin
30.51%
Gross Margin
59.17%
ROE
35.45%
ROA
16.28%
Growth
Revenue and earnings growth rates
Revenue Growth
+15.9%
Earnings Growth
+35.3%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+33.0%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.11
Low debt
Current Ratio
1.75
Good
Quick Ratio
1.56
Excellent
Cash/Share
$8.16
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-04
$N/A
2025-10-29
$2.87
+26.9% surprise
2025-07-23
$2.31
+5.7% surprise
2025-04-24
$2.81
+40.1% surprise
Communication Services Sector Comparison
Comparing GOOGL against 36 companies in the Communication Services sector
(0 bullish, 17 neutral, 19 bearish)
P/E Ratio
32.61
This Stock
vs
21.75
Sector Avg
+49.9%
(Expensive)
Return on Equity (ROE)
35.45%
This Stock
vs
-7.47%
Sector Avg
-574.5%
(Below Avg)
Profit Margin
32.23%
This Stock
vs
40.35%
Sector Avg
-20.1%
(Weaker)
Debt to Equity
0.11
This Stock
vs
1.12
Sector Avg
-89.8%
(Less Debt)
Revenue Growth
15.9%
This Stock
vs
28.6%
Sector Avg
-44.4%
(Slower)
Current Ratio
1.75
This Stock
vs
2.2
Sector Avg
-20.8%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
GOOGL
Alphabet Inc.
|
NEUTRAL | $4.0T | 32.61 | 35.4% | 32.2% | $330.0 | |
|
GOOG
Alphabet Inc.
|
NEUTRAL | $3.99T | 32.61 | 35.4% | 32.2% | $330.34 | |
|
META
Meta Platforms, Inc.
|
NEUTRAL | $1.56T | 27.44 | 32.6% | 30.9% | $620.25 | |
|
NFLX
Netflix, Inc.
|
NEUTRAL | $372.88B | 36.82 | 42.9% | 24.0% | $88.0 | |
|
TMUS
T-Mobile US, Inc.
|
NEUTRAL | $209.69B | 17.97 | 19.0% | 13.8% | $186.32 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-12-09 | SHRIRAM KAVITARK RAM | Director | Gift | 39,200 | - |
| 2025-09-25 | SHRIRAM KAVITARK RAM | Director | Gift | 243,508 | - |
| 2025-08-15 | SHRIRAM KAVITARK RAM | Director | Sale | 26,000 | $5,330,000 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
STRONG_BUY
54 analysts
Goldman Sachs
2026-01-13
Buy
Buy
B of A Securities
2026-01-13
Buy
Buy
Wells Fargo
2026-01-12
Equal-Weight
Equal-Weight
Mizuho
2026-01-09
Outperform
Outperform
Cantor Fitzgerald
2026-01-08
Neutral
Overweight
Canaccord Genuity
2026-01-07
Buy
Buy
Jefferies
2026-01-05
Buy
Buy
Citizens
2025-12-31
Market Outperform
Market Outperform
Citigroup
2025-12-22
Buy
Buy
Wedbush
2025-12-19
Outperform
Outperform
Past News Coverage
Recent headlines mentioning GOOGL from our newsroom.
Newest → oldest
No matching news yet.