Alphabet Inc.(GOOGL) - Stock detail

Alphabet Inc.

US
GOOGL
Alphabet Inc.(Listing date: 08/19/2004)

Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers AI infrastructure, Vertex AI platform, cybersecurity, data and analytics, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.

AI Value AnalystBuy
Overall Rating8/10
Generated at:2026-03-04 16:34:57
Analysis based on 5 financial reports from periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, 2024-12-31. Market data as of 2026-03-05. Comprehensive financial analysis using trailing twelve months (TTM) metrics and forward projections.
Overview

Alphabet Inc. demonstrates exceptional fundamental strength with robust financial health, superior profitability metrics, and strong growth trajectory. The company maintains dominant market positions in search, cloud, and AI sectors while showing consistent double-digit revenue growth and accelerating net income growth.

Valuation
7/10
Profitability
9/10
Financial health
8/10
Operation Advice
  • Buy with primary target of $375 (23.7% upside) and secondary target of $420 (38.5% upside).
  • Set stop loss at $280 (7.6% downside protection).
  • Consider current valuation offers reasonable upside potential given strong fundamentals and growth prospects.

Valuation

P/E TTM
30.46
P/E LYR
40.77
P/B MRQ
9.69
P/S TTM
--
AI Analysis
  • Current forward PE of 40.77 appears elevated but justified by exceptional growth rates and premium market position. Fair value estimates range from $320-420 with base case of $350-380 representing 15-25% upside potential.
  • Forward PE: 40.77 (dynamic)
  • Trailing PE: 30.46 (TTM)
  • PB Ratio: 9.69
  • PS Ratio: 9.08 (TTM)
  • Forward PE appears elevated compared to historical averages but justified by exceptional growth rates (32%+ net income growth)
  • Premium market position supports higher valuation multiples
  • Fair value ranges: Conservative Estimate: $320-350 (5-15% upside), Base Case: $350-380 (15-25% upside), Optimistic Case: $380-420 (25-38% upside)
  • Using 2026 EPS projection of ~$12.50 with sector-average forward PE multiple of 35x yields $437.50
  • Applying more conservative 30x multiple yields $375.00
  • $350-380 represents reasonable 12-month target considering historical trading ranges and growth premium
Valuation trend

Profitability

ROE TTM
35.70%
Net margin
32.81%
Gross margin
59.65%
Total revenue
402.84B
AI Analysis
  • Exceptional profitability with 15.09% YoY revenue growth to $402.84B, margin expansion to 59.65%, and 32.01% net income growth to $132.17B. Superior return metrics include ROE of 35.70% and ROA of 25.28%.
  • Revenue Growth: 15.09% YoY growth to $402.84B (2025 annual), demonstrating sustained top-line expansion
  • Margin Expansion: Gross margin improved to 59.65% (2025) from 58.20% (2024), indicating pricing power and cost efficiency
  • Net Income Growth: 32.01% YoY increase to $132.17B (2025), significantly outpacing revenue growth
  • Return Metrics: ROE of 35.70% and ROA of 25.28% (TTM) represent superior capital allocation efficiency
  • Consistent Performance: Quarterly results show sustained growth momentum with Q1 2025 net income growth of 45.97% YoY
  • Profitability profile is exceptional with margin expansion, double-digit growth rates, and industry-leading returns
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
  • Robust financial health with current ratio of 2.01 indicating strong liquidity, debt-to-asset ratio of 30.24% reflecting conservative capital structure, and substantial cash reserves supporting operations and strategic investments.
  • Liquidity: Current ratio of 2.01 indicates strong short-term liquidity position, well above the industry standard of 1.5
  • Leverage: Debt-to-asset ratio of 30.24% reflects conservative capital structure with moderate leverage
  • Profit Retention: Consistent revenue growth supports strong cash flow generation
  • Balance Sheet Strength: The company maintains substantial cash reserves supporting both operations and strategic investments
  • Financial health indicators suggest Alphabet has sufficient liquidity to meet obligations while maintaining flexibility for growth investments
  • Company can withstand potential economic headwinds with its strong financial position
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset27.80%27.37%27.71%27.89%30.24%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.841.771.901.752.01