One-glance verdict
Within fair range
$457.69 our estimate vs market $335.31
Wall Street consensus: $422.34 (-7.7% lower than our fair-value estimate)
27% below our estimate
Fundamentals snapshot
Alphabet Inc.
GOOG · NMS · Communication Services · Internet Content & Information
Current price
$335.31
52-week range
$233.38 - $404.47
Market cap
$4.10T
Balance sheet
Healthy
175.32x Strong cushion
Net cash $121.68B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 10.7% last year.
- Reward Returns 48.7% on equity, ahead of 50% of its peers.
- Risk Forward P/E (22.6x) is higher than trailing (16.8x) - earnings are expected to drop.
- Risk Insider ownership is only 0.5% (peer median: 1.6%).
What this company does
Alphabet Inc.
Alphabet is the parent company of Google, whose search engine, YouTube, and Android software are used by billions of people every day. It makes the vast majority of its money by selling advertisements to businesses on these services, while also growing newer businesses like cloud computing (renting its powerful computer networks to other companies). This widespread daily use of its core products gives the company a very consistent way to earn money.
How the company got here
What started as a university project by co-founders Larry Page and Sergey Brin in 1998 grew into the world's most popular search engine, Google. The company quickly became a dominant force in internet search and online advertising. In 2015, Google restructured itself, creating a new parent company called Alphabet Inc. to oversee its many ventures. This change allowed the core Google business to focus on its internet products while giving other ambitious projects more independence.
What it actually does
Most people know Alphabet through its Google products, which are a part of daily life for billions. You use Alphabet's technology when you search for information online (Google Search), watch videos (YouTube), check your email (Gmail), or get directions (Google Maps). The company also makes the Android software that powers most of the world's smartphones, the Chrome web browser, and hardware like Pixel phones and Nest smart home devices. While many of these services are free for users, Alphabet makes most of its money by selling advertising to businesses that want to reach this massive audience.
Google Services
This is Alphabet's largest and most profitable segment, containing the familiar products that most people use every day. It generates the vast majority of the company's revenue, primarily through advertising on Google Search and YouTube. Businesses pay to have their ads shown to people who are searching for specific things or watching certain types of videos. This segment also includes revenue from Android, Chrome, Google Maps, and sales of hardware like Pixel phones, as well as subscription services like YouTube Premium and Google One.
Google Cloud
This is a fast-growing part of Alphabet's business that provides services to other companies. Instead of buying and managing their own computer servers, businesses can pay to use Google's powerful infrastructure for data storage, computing power, and artificial intelligence tools. This segment also includes Google Workspace, which offers paid, business-focused versions of popular tools like Gmail and Google Docs for company-wide collaboration. While it's a smaller piece of the company than Google Services, it's a key area of investment and growth.
Other Bets
This segment is a collection of Alphabet's most ambitious and futuristic projects, which are separate from the main Google business. These are long-term investments in new technologies that may one day become major businesses, but currently represent a very small fraction of the company's revenue. Examples include Waymo, which is developing self-driving car technology, and Verily, which is focused on life sciences and healthcare research. These ventures are considered "bets" because they are high-risk but have the potential for high rewards in the future.
What management is betting on now
Alphabet's leadership is heavily focused on artificial intelligence (AI), calling it an "AI-first" company. They are investing billions of dollars to integrate advanced AI, like their Gemini models, into all of their major products, from Search and YouTube to Google Cloud. The goal is to make their services more helpful and intelligent for users and to provide powerful AI tools to business customers. This major investment in AI infrastructure and research is seen as the key driver for the company's future growth and competitiveness.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$17.64B
FY2024 Q4
$24.84B
FY2025 Q1
$18.95B
FY2025 Q2
$5.30B
FY2025 Q3
$24.46B
FY2025 Q4
$24.55B
FY2026 Q1
$10.12B
FY2026 Q2
$-5.86B
Revenue
$119.80B
Net income
$112.19B
Diluted EPS
9.11
Operating cash flow
$39.07B
Free cash flow
$-5.86B
Fetching…
Sources
Revenue
$109.90B
Net income
$62.58B
Diluted EPS
5.11
Operating cash flow
$45.79B
Free cash flow
$10.12B
Fetching…
Sources
Revenue
$113.83B
Net income
$34.45B
Diluted EPS
2.82
Operating cash flow
$52.40B
Free cash flow
$24.55B
Fetching…
Sources
Revenue
$102.35B
Net income
$34.98B
Diluted EPS
2.87
Operating cash flow
$48.41B
Free cash flow
$24.46B
Fetching…
Sources
Revenue
$96.43B
Net income
$28.20B
Diluted EPS
2.31
Operating cash flow
$27.75B
Free cash flow
$5.30B
Fetching…
Sources
Revenue
$90.23B
Net income
$34.54B
Diluted EPS
2.81
Operating cash flow
$36.15B
Free cash flow
$18.95B
Fetching…
Sources
Revenue
$96.47B
Net income
$26.54B
Diluted EPS
2.14
Operating cash flow
$39.11B
Free cash flow
$24.84B
Fetching…
Sources
Revenue
$88.27B
Net income
$26.30B
Diluted EPS
2.12
Operating cash flow
$30.70B
Free cash flow
$17.64B
Fetching…
Sources
Is it cheap or expensive?
Fair value $457.69 vs current price $335.31
Wall Street consensus is the average analyst price target: $422.34 (-7.7% lower than our fair-value estimate).
Our most-likely fair value is $457.69 a share — about 36.5% away from today's price of $335.31, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $121.7B - more cash than debt. Interest coverage 175.3x.
Net debt
$-121.68B
Interest coverage
175.32x
Alphabet Inc.'s profit covers its interest bill about 175.3 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
GOOG
BASELINE
Alphabet Inc.
Total debt $120.79B Interest coverage 175.32x This is the baseline the peer rows are being compared against.
Total debt $128.81B Interest coverage 50.88x -71% vs GOOG Carries about 3.4x less debt cushion than GOOG.
Total debt $251.64B Interest coverage 35.17x -80% vs GOOG Carries about 5.0x less debt cushion than GOOG.
Total debt $112.32B Interest coverage 71.48x -59% vs GOOG Carries about 2.5x less debt cushion than GOOG.
Total debt $84.34B Interest coverage 33.83x -81% vs GOOG Carries about 5.2x less debt cushion than GOOG.
Total debt $38.86B Interest coverage 503.42x +187% vs GOOG Carries about 2.9x more debt cushion than GOOG.
What you should know
The case for and against GOOG
3 Rewards
2 Risks
Rewards
-
Revenue grew 10.7% last year.
-
Returns 48.7% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Forward P/E (22.6x) is higher than trailing (16.8x) - earnings are expected to drop.
-
Insider ownership is only 0.5% (peer median: 1.6%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.83x
Forward P/E
22.57x
P/B
6.59x
P/S
9.20x
EV/EBITDA
23.08x
PEG ratio
1.24x
Profitability
How much profit each dollar creates
Gross margin
60.9%
Operating margin
34.0%
Net margin
54.8%
ROE
48.7%
ROA
13.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.19x
Current ratio
2.72x
Quick ratio
2.47x
Total debt
$120.79B
Total cash
$242.47B
Growth
How the business has been compounding
Revenue TTM
$445.87B
Revenue 5Y CAGR
11.8%
EPS TTM
19.92
EPS 5Y CAGR
33.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$185.68B
Free CF TTM
$73.27B
FCF margin
16.4%
Dividend
Shareholder payout
Yield
0.3%
Payout ratio
4.3%
Last ex-div date
2026-09-04