Alphabet Inc.(GOOG) - Stock detail

Alphabet Inc.

US
GOOG
Alphabet Inc.(Listing date: 04/03/2014)

Alphabet Inc. is the holding company of Google and its various subsidiaries, established in 2015. Google was founded in California on September 4, 1998, and re-incorporated in Delaware in August 2003. Alphabet is involved in various fields, including technology, life sciences, capital investment, and research. Its subsidiaries include Google, Calico, GV, Google Capital, Google Fiber, among others. Google is committed to internet search, cloud computing, advertising technology, and other fields, developing and providing a large number of internet-based products and services.

AI Value AnalystBuy
Overall Rating8.7/10
Generated at:2026-03-13 17:42:43
Analysis based on 5 financial reports covering periods from 2024-12-31 to 2025-12-31, including quarterly reports for 2025-03-31, 2025-06-30, 2025-09-30, and annual reports for 2024-12-31 and 2025-12-31. Data completeness is comprehensive for fundamental analysis purposes.
Overview

Alphabet Inc. demonstrates exceptional fundamental strength with strong financial health, superior profitability metrics, and reasonable valuation relative to growth prospects. The company maintains dominant market positions in search advertising and cloud computing, with robust revenue growth and margin expansion supporting continued investment in AI and emerging technologies.

Valuation
7/10
Profitability
10/10
Financial health
9/10
Operation Advice
  • Buy at current levels with a 12-month price target of $340 representing 13% upside.
  • Consider dollar-cost averaging given elevated forward PE ratios, but overall fundamentals support accumulation for long-term growth investors.

Valuation

P/E TTM
30.49
P/E LYR
40.82
P/B MRQ
9.70
P/S TTM
--
AI Analysis
  • Alphabet's forward PE of 40.82x appears elevated but justified by growth expectations, while trailing PE of 30.49x is reasonable given 32.01% earnings growth. Current price of $301.46 appears slightly undervalued relative to growth prospects and competitive position.
  • Forward PE: 40.82x appears elevated compared to historical averages but reflects market expectations for continued growth
  • Trailing PE: 30.49x is more reasonable given the 32.01% earnings growth
  • PB ratio of 9.70x is justified by exceptional ROE of 35.70%
  • PS ratio of 9.05x reflects premium valuation for high-growth technology leader
  • Base case price target: $320-340 (12-18% upside) based on 35x forward earnings
  • Bull case: $350-380 (20-30% upside) assuming accelerated growth in cloud/AI
  • Bear case: $280-300 (5-10% downside) if growth moderates
  • Current price of $301.46 appears slightly undervalued relative to growth prospects
Valuation trend

Profitability

ROE TTM
35.70%
Net margin
32.81%
Gross margin
59.65%
Total revenue
402.84B
AI Analysis
  • Alphabet exhibits exceptional profitability with 15.09% YoY revenue growth to $402.84B, 32.01% net profit growth to $132.17B, and margin expansion to 59.65% gross margin. Superior ROE of 35.70% and ROA of 25.28% demonstrate outstanding capital efficiency.
  • Revenue Growth: 15.09% YoY growth to $402.84B (2025 annual)
  • Margin Expansion: Gross margin improved to 59.65% (from 58.20% in 2024)
  • Net Profit Growth: 32.01% YoY increase to $132.17B
  • Return Metrics: ROE of 35.70% and ROA of 25.28% demonstrate superior capital efficiency
  • Consistent Performance: Quarterly results show sustained growth momentum across all reporting periods
  • Profitability driven by dominant search advertising business, growing cloud segment, and efficient monetization of ecosystem
  • Margin expansion indicates improved operational efficiency and pricing power
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--10.30%18.24%27.45%35.70%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue350.02B90.23B186.66B289.01B402.84B

Financial health

Debt/Asset
30.24%
Current ratio
2.01
Quick ratio
--
Cash ratio
2.01
AI Analysis
  • Alphabet demonstrates strong financial health with excellent liquidity (current ratio 2.01), conservative leverage (debt-to-equity ratio 30.24%), and strong cash flow generation from high-margin advertising business, providing ample liquidity for operations and strategic investments.
  • Liquidity Position: Current ratio of 2.01 indicates strong short-term financial stability
  • Leverage: Debt-to-equity ratio of 30.24% shows conservative capital structure
  • Profit Retention: Consistent revenue growth supports reinvestment capabilities
  • Cash Flow Generation: Strong operating cash flows from high-margin advertising business
  • Financial position remains robust with ample liquidity to fund operations, investments, and strategic initiatives
  • Maintains financial flexibility
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset27.80%27.37%27.71%27.89%30.24%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.841.771.901.752.01