One-glance verdict
Within fair range
$413.74 our estimate vs market $334.76
Wall Street consensus: $430.33 (4.0% higher than our fair-value estimate)
19% below our estimate
Fundamentals snapshot
Alphabet Inc.
GOOGL · NMS · Communication Services · Internet Content & Information
Current price
$334.76
52-week range
$251.85 - $408.61
Market cap
$4.09T
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 (21.8x) is higher than trailing (16.8x) - earnings are expected to drop.
- Risk Insider ownership is only 1.6% (peer median: 1.6%).
What this company does
Alphabet Inc.
Alphabet is the company behind Google Search, YouTube, and Android, services that billions of people use every day. The company makes the vast majority of its money by selling advertising space to other businesses on these extremely popular platforms. This creates a powerful business ecosystem (a network of interconnected products that are hard for users to leave), making its ad space highly valuable and difficult for competitors to challenge.
How the company got here
Alphabet started as Google, a research project by two Stanford students, Larry Page and Sergey Brin, in 1996. They figured out a new way to rank search results that made finding things on the internet much easier and more relevant. The company grew rapidly by adding popular services you might recognize, like Gmail, Google Maps, and YouTube. In 2015, they reorganized the company, creating Alphabet as the parent or holding company (a company that owns other companies' stock) to allow the core Google business to focus, while also giving their other newer ventures room to grow independently.
What it actually does
Most people know Alphabet through its main subsidiary, Google, which is famous for its search engine. But the company does much more, offering a huge range of popular free services like YouTube for videos, Gmail for email, and Google Maps for navigation. It also makes the Android software that powers most of the world's smartphones. The company makes most of its money not by charging for these services, but by selling advertising to businesses that want to reach the billions of people using them. Additionally, it sells hardware like Pixel phones and provides internet-based computing services to other businesses.
Google Services
This is the largest and most well-known part of Alphabet, containing the products most people use every day like Search, YouTube, Android, and Chrome. This segment generates the vast majority of the company's revenue (the total money a company brings in from sales). The main way it makes money is through advertising; businesses pay to show ads to people searching on Google or watching videos on YouTube. It also earns money from YouTube subscriptions, app sales on the Google Play store, and selling its own devices like the Pixel phone.
Google Cloud
This part of the company provides cloud computing services, which is like renting out its powerful computer infrastructure and software to other businesses. Instead of buying and managing their own expensive computer servers, companies can pay Alphabet to store their data, run their applications, and use advanced tools for things like data analysis and artificial intelligence. Customers range from small startups to large corporations who pay fees based on how much of these services they use. This is a smaller but rapidly growing slice of Alphabet's business.
Other Bets
This is Alphabet's collection of ambitious, long-term projects that are separate from the main Google businesses. Think of these as big wagers on future technology, which is why they are called "bets." This segment includes a variety of independent companies working on futuristic ideas like self-driving cars (Waymo), drone delivery (Wing), and health technology. These businesses are still in early stages and make up a very small fraction of Alphabet's total revenue, but the company hopes some of them will become major sources of growth in the future.
What management is betting on now
Alphabet is heavily focused on artificial intelligence (AI), weaving it into all its major products like Search and its Cloud services to make them smarter and more helpful. The company is making huge investments in the powerful computer systems, called infrastructure (the basic physical and organizational structures needed for an operation), required for advanced AI. Another major priority is expanding its Google Cloud business to compete more strongly for large corporate customers. Management is also continuing to fund its "Other Bets" like Waymo's self-driving cars, believing these long-term projects could become the next big growth engines for the company.
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 $413.74 vs current price $334.76
Wall Street consensus is the average analyst price target: $430.33 (4.0% higher than our fair-value estimate).
Our most-likely fair value is $413.74 a share — about 23.6% away from today's price of $334.76, 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
GOOGL
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 GOOGL Carries about 3.4x less debt cushion than GOOGL.
Total debt $251.64B Interest coverage 35.17x -80% vs GOOGL Carries about 5.0x less debt cushion than GOOGL.
Total debt $112.32B Interest coverage 71.48x -59% vs GOOGL Carries about 2.5x less debt cushion than GOOGL.
Total debt $84.34B Interest coverage 33.83x -81% vs GOOGL Carries about 5.2x less debt cushion than GOOGL.
Total debt $38.86B 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 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 (21.8x) is higher than trailing (16.8x) - earnings are expected to drop.
-
Insider ownership is only 1.6% (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)
16.80x
Forward P/E
21.81x
P/B
6.58x
P/S
9.18x
EV/EBITDA
23.04x
PEG ratio
1.19x
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
19.93
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