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 Rating7.7/10
Generated at:2026-06-11 17:40:22
Analysis based on real data from 5 financial reports: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31. Stock price as of 2026-06-11 close: $357.77.
Overview

Alphabet Inc. (GOOGL) is a global technology leader with strong financial health, robust and accelerating profitability, and a valuation that appears fairly valued to slightly undervalued relative to its exceptional growth trajectory and dominant market position.

Valuation
6/10
Profitability
9/10
Financial health
8/10
Operation Advice
  • Assign a Buy rating for investors with a medium to long-term horizon and tolerance for growth stock volatility.
  • The calculated 12-month target price range is $380 - $450, suggesting potential upside from the current price of $357.77.

Valuation

P/E TTM
29.10
P/E LYR
40.77
P/B MRQ
9.74
P/S TTM
--
AI Analysis
  • Valuation multiples are premium but supported by fundamental performance. The current price is considered fairly valued to slightly undervalued relative to the company's growth trajectory, with a target price range of $380-$450.
  • The TTM P/E of 29.10x is elevated compared to historical market averages but must be contextualized with the company's growth profile.
  • The high forward P/E of 40.77x suggests the market is pricing in significant future earnings growth, supported by recent explosive Q1 profit growth of 81%.
  • The high PB ratio of 9.74x is justified by the world-class ROE of 39.40%.
  • The PS ratio of 10.30x reflects the market's premium valuation for its top-line growth and market dominance.
  • Using TTM EPS ($10.81) and a P/E range of 25x-35x yields a fundamental value range of $270.25 - $378.35.
  • Using the Q1 annualized EPS run-rate ($20.44) with a multiple of 20x-30x provides a range of $408.80 - $613.20.
  • A reasonable 12-month target price range is $380 - $450.
  • The current price of $357.77 sits at the lower end of the historical earnings-based range and below the forward-looking range.
  • Given stellar recent growth, high profitability, and strong financial health, the current valuation does not appear excessive.
  • It can be considered fairly valued to slightly undervalued relative to its growth trajectory.
Valuation trend

Profitability

ROE TTM
39.40%
Net margin
56.94%
Gross margin
62.45%
Total revenue
109.90B
AI Analysis
  • Alphabet exhibits robust and accelerating profitability with strong revenue growth, exceptional earnings growth, high returns on equity and assets, and consistently high gross margins.
  • Revenue growth has been strong, with Q1 2026 year-over-year growth at 21.79%, an acceleration from the 15.09% growth reported for the full year 2025.
  • Net income growth is outstanding. Q1 2026 net income surged 81.18% year-over-year to $62.58B.
  • Full-year 2025 net income also grew 32.01%.
  • Return on Equity (ROE-TTM) is 39.40% and Return on Assets (ROA-TTM) is 27.45%, indicating highly efficient use of shareholder capital and company assets.
  • Gross margins remain consistently high around 60%, showcasing the durable profitability of its core operations.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--18.24%27.45%35.70%39.40%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue90.23B186.66B289.01B402.84B109.90B

Financial health

Debt/Asset
31.99%
Current ratio
1.92
Quick ratio
--
Cash ratio
1.92
AI Analysis
  • The company demonstrates strong financial health with good liquidity, a conservative capital structure with low debt reliance, and powerful conversion of revenue into profit.
  • The current ratio of 1.92 indicates sufficient short-term assets to cover short-term liabilities, suggesting good liquidity management.
  • A debt-to-asset ratio of 31.99% reflects a conservative capital structure with a low reliance on debt financing, providing financial stability and flexibility.
  • The exceptionally high net margin of 56.94% for Q1 2026 (driven by non-operating income) and a solid 32.81% for the full year 2025 demonstrate powerful conversion of revenue into profit.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset27.37%27.71%27.89%30.24%31.99%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.771.901.752.011.92