One-glance verdict
Within fair range
$294.67 our estimate vs market $342.09
Wall Street consensus: $433.55 (47.1% higher than our fair-value estimate)
16% above our estimate
Fundamentals snapshot
Alphabet Inc.
GOOGL · NMS · Communication Services · Internet Content & Information
Current price
$342.09
52-week range
$187.82 - $408.61
Market cap
$4.17T
Balance sheet
Healthy
175.32x Strong cushion
Net cash $30.96B. 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 4.9% last year.
- Reward Returns 38.9% on equity, ahead of 50% of its peers.
- Risk Stock trades 10.3% above its 5-year average P/E.
- Risk Insider ownership is only 1.2% (peer median: 1.6%).
What this company does
Alphabet Inc.
Alphabet is the parent company of Google, and it makes almost all of its money from selling advertisements on Google Search and YouTube. The company also earns money by renting out its powerful computer systems to other businesses and by selling its own hardware, like the Pixel phone. Because billions of people use its free services every day, Alphabet has a massive audience to show ads to, which is the main engine of its business.
How the company got here
Originally started as a university project in 1995 by Larry Page and Sergey Brin, the company was first known as Google and focused on a new way to rank web pages for internet searches. It quickly became the world's most popular search engine. In 2015, Google restructured itself, creating a new parent company called Alphabet Inc. to oversee Google and a collection of other, more experimental businesses. This change allowed the main internet businesses like Search and YouTube to remain focused, while giving more independence to newer ventures in areas like self-driving cars and healthcare.
What it actually does
Most people know Alphabet through its largest subsidiary, Google, which provides many free services that are a part of daily life. These include Google Search, Google Maps for navigation, Gmail for email, YouTube for videos, and the Chrome web browser. The company also makes the Android operating system that powers the majority of the world's smartphones. Beyond these free services, Alphabet sells hardware like the Pixel smartphone and Nest smart home devices, and offers subscription services like YouTube TV.
Google Services
This is Alphabet's largest and most profitable segment, making up the vast majority of the company's revenue. It generates money primarily through advertising. Businesses pay to place ads on Google's search results pages and YouTube, and also on a network of other websites and apps that partner with Google. This segment also includes revenue from the sale of apps on the Google Play Store, hardware like Pixel phones, and subscriptions to services like YouTube Premium and Google One.
Google Cloud
This is a fast-growing part of Alphabet's business that provides cloud computing services to other companies. Think of it as renting out Google's powerful computer infrastructure, data storage, and advanced software tools. Businesses pay to host their applications, analyze large amounts of data, and use Google's artificial intelligence and machine learning tools. This segment competes with other major cloud providers and makes money from fees and subscriptions paid by its enterprise customers.
Other Bets
This segment is a collection of Alphabet's more futuristic and experimental businesses that are not part of the core Google operations. These are long-term projects that could become major businesses in the future, such as Waymo (self-driving car technology) and Verily (healthcare and life sciences research). Currently, this is the smallest of Alphabet's segments, generating a very small fraction of total revenue from things like transportation and internet services.
What management is betting on now
Alphabet's primary focus is on artificial intelligence (AI), aiming to integrate it into all of its products and services. This includes making Google Search more conversational and intelligent, and providing powerful AI tools to businesses through Google Cloud. The company is investing heavily in AI research and infrastructure to stay ahead in this competitive field. Management is also focused on growing the Google Cloud business to further diversify revenue (the different ways a company makes money) away from its heavy reliance on advertising.
Price history
How the share price has moved
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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 $294.67 vs current price $342.09
Wall Street consensus is the average analyst price target: $433.55 (47.1% higher than our fair-value estimate).
Our most-likely fair value is $294.67 a share — about 13.9% away from today's price of $342.09, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $31.0B - more cash than debt. Interest coverage 175.3x.
Net debt
$-30.96B
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
GOOGL
BASELINE
Alphabet Inc.
Total debt $95.88B Interest coverage 175.32x This is the baseline the peer rows are being compared against.
Total debt $125.43B Interest coverage 53.89x -69% vs GOOGL Carries about 3.3x less debt cushion than GOOGL.
Total debt $86.77B Interest coverage 71.48x -59% vs GOOGL Carries about 2.5x less debt cushion than GOOGL.
Total debt $235.54B Interest coverage 35.17x -80% vs GOOGL Carries about 5.0x less debt cushion than GOOGL.
Total debt $84.71B Interest coverage 33.83x -81% vs GOOGL Carries about 5.2x less debt cushion than GOOGL.
Total debt $12.81B Interest coverage 503.42x +187% vs GOOGL Carries about 2.9x more debt cushion than GOOGL.
What you should know
The case for and against GOOGL
3 Rewards
2 Risks
Rewards
-
Revenue grew 4.9% last year.
-
Returns 38.9% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 10.3% above its 5-year average P/E.
-
Insider ownership is only 1.2% (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)
26.46x
Forward P/E
23.28x
P/B
8.66x
P/S
9.88x
EV/EBITDA
25.50x
PEG ratio
1.37x
Profitability
How much profit each dollar creates
Gross margin
60.4%
Operating margin
36.1%
Net margin
37.9%
ROE
38.9%
ROA
14.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.20x
Current ratio
1.92x
Quick ratio
1.71x
Total debt
$95.88B
Total cash
$126.84B
Growth
How the business has been compounding
Revenue TTM
$422.50B
Revenue 5Y CAGR
11.8%
EPS TTM
12.93
EPS 5Y CAGR
33.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$174.35B
Free CF TTM
$73.27B
FCF margin
17.3%
Dividend
Shareholder payout
Yield
0.2%
Payout ratio
6.4%
Last ex-div date
2026-06-08