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 AnalystHold
Overall Rating7/10
Generated at:2026-06-03 17:39:34
Analysis based on 5 financial reports from 2025-03-31 to 2026-03-31. Data includes quarterly financial metrics, valuation multiples, and profitability indicators. Price data as of 2026-06-04 close. Financial analysis covers liquidity, solvency, profitability, and valuation metrics.
Overview

Alphabet Inc. (GOOGL) is a global technology leader with exceptional profitability and strong financial health, but trades at premium valuation multiples that reflect its high-quality fundamentals.

Valuation
4/10
Profitability
9/10
Financial health
8/10
Operation Advice
  • Hold for existing shareholders as strong execution justifies maintaining position.
  • For new investors, wait for a more attractive entry point during market volatility as current price reflects much of near-term optimism.
  • A reasonable 12-month target price range is $400-$430.

Valuation

P/E TTM
29.10
P/E LYR
40.77
P/B MRQ
9.74
P/S TTM
--
AI Analysis
  • Valuation multiples are elevated with P/E (TTM) of 29.10, P/B of 9.74, and P/S of 10.29, typical for a high-growth market leader. The current price near $359 appears fair relative to recent trading band and fundamentals, with forward P/E of 40.77 suggesting market prices in continued high growth.
  • Valuation multiples are elevated
  • A P/E (TTM) of 29.10 and a P/B of 9.74 are high in absolute terms, typical for a high-growth market leader
  • The forward P/E of 40.77 suggests the market is pricing in continued high growth
  • The P/S ratio of 10.29 also reflects a premium valuation for its sales
  • Given the explosive earnings growth (81.18% YoY in Q1) and high but potentially justified multiples for a company of this quality and growth rate, the current price near $359 appears to be in a fair value range relative to its recent trading band and fundamentals
  • Based on a fundamental assessment of its growth profile, profitability, and market position, a reasonable 12-month target price range is $400 - $430
  • This target incorporates expectations for sustained, albeit potentially moderating, growth rates from the Q1 2026 peak
Valuation trend

Profitability

ROE TTM
39.40%
Net margin
56.94%
Gross margin
62.45%
Total revenue
109.90B
AI Analysis
  • Alphabet's profitability is exceptional and accelerating with revenue growth increasing to 21.79% in Q1 2026 and net income growth surging to 81.18%. Net margin reached extraordinary 56.94% with ROE of 39.40% and ROA of 27.45% demonstrating outstanding profit generation ability.
  • Alphabet's profitability is exceptional and accelerating
  • Revenue growth has been strong and is accelerating
  • The year-over-year growth increased from 12.04% in Q1 2025 to an impressive 21.79% in Q1 2026
  • Net income growth is even more spectacular, surging from 45.97% in Q1 2025 to 81.18% in Q1 2026
  • The company maintains stellar margins
  • The gross margin improved to 62.45% in Q1 2026 from 59.70% a year prior
  • The net margin reached an extraordinary 56.94% in the latest quarter, significantly higher than the 38.28% in Q1 2025, indicating improved cost control and operating leverage
  • The Return on Equity (ROE-TTM) is a very high 39.40%, and Return on Assets (ROA-TTM) is 27.45%
  • These figures demonstrate an outstanding ability to generate profits from its equity base and asset investments
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 exhibits a strong and healthy financial position with current ratio of 1.92 indicating good operational liquidity, debt-to-asset ratio of 31.99% considered moderate and manageable, and exceptional net margins suggesting substantial free cash flow generation.
  • The company exhibits a strong and healthy financial position
  • The current ratio of 1.92 indicates sufficient short-term assets to cover short-term liabilities, suggesting good operational liquidity
  • A debt-to-asset ratio of 31.99% is considered moderate and manageable for a technology company of this scale
  • It indicates a balanced use of leverage without over-reliance on debt financing
  • While specific cash flow data is not provided, the exceptionally high net margins (56.94% in Q1 2026) and robust net income growth strongly suggest the company generates substantial free cash flow, which supports its operations, investments, and shareholder returns
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset27.37%27.71%27.89%30.24%31.99%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.771.901.752.011.92