One-glance verdict
Within fair range
$349.91 our estimate vs market $343.50
Wall Street consensus: $429.36 (22.7% higher than our fair-value estimate)
2% below our estimate
Fundamentals snapshot
Alphabet Inc.
GOOGL · NMS · Communication Services · Internet Content & Information
Current price
$343.50
52-week range
$235.84 - $408.61
Market cap
$4.20T
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 (22.8x) is higher than trailing (17.2x) - 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 parent company of Google, which makes the vast majority of its money by selling advertisements on its popular services like Google Search and YouTube. These products work together to form a powerful ecosystem (a network of interconnected services that keep users coming back), which also helps the company sell cloud computing services to businesses and its own devices like the Pixel phone. This integration of everyday services with its advertising business is the core of how the company operates and grows.
How the company got here
Alphabet started in 1996 as a Stanford University research project by Larry Page and Sergey Brin to create a better way to search the growing internet. They officially formed Google Inc. in 1998, operating out of a garage. In 2015, the company restructured, creating Alphabet as a parent company to oversee Google and other ventures, allowing each business to operate with more independence. This new structure was designed to make the core Google business more focused while giving more freedom to newer, more experimental businesses.
What it actually does
Most people know Alphabet through its biggest subsidiary, Google, which provides popular free services like Search, Gmail, YouTube, and Google Maps. The company also makes the Android operating system that powers most of the world's smartphones, the Chrome web browser, and hardware like Pixel phones. Beyond these consumer products, Alphabet provides cloud computing services for businesses and invests in a wide range of future-focused technologies, from self-driving cars to healthcare research.
Google Services
This is the company's largest and most profitable segment, containing the familiar products most people use every day. It makes the vast majority of its money from advertising; businesses pay to show ads to people using Google Search, watching YouTube, or on other websites and apps in Google's network. This segment also generates revenue (all the money a company brings in from sales) from sales of apps on the Google Play Store, subscriptions like YouTube Premium, and sales of its own devices like Pixel phones.
Google Cloud
This is a fast-growing part of the company that provides services to other businesses, governments, and organizations. Instead of buying and managing their own computer servers, companies can pay Alphabet to use its powerful infrastructure for data storage, data analysis, and artificial intelligence tools. This segment also includes Google Workspace, which offers paid business versions of tools like Gmail and Google Docs for a subscription fee. Customers range from large companies like Spotify and Verizon to smaller businesses that need powerful computing resources.
Other Bets
This segment is a collection of many smaller, separate companies that are working on long-term, ambitious projects that are not yet profitable. These are considered "bets" on future technologies and include Waymo, which is developing self-driving car technology, and Verily, which focuses on life sciences and healthcare. Other ventures in this group are working on things like drone delivery with Wing and high-speed internet with GFiber. While this is currently a very small slice of the company's total business, these projects have the potential to become major businesses in the future.
What management is betting on now
The company's leadership is heavily focused on artificial intelligence (AI), calling it an "AI-first" strategy. They are investing billions of dollars in building the necessary infrastructure (the basic equipment and structures needed for an organization to function), like data centers and custom computer chips, to power advanced AI. The goal is to integrate AI into all of its products, from improving search results and YouTube recommendations to offering powerful AI tools to its Google Cloud customers. Management sees AI as the main driver of future growth, especially in its competition with other major technology companies.
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 $349.91 vs current price $343.50
Wall Street consensus is the average analyst price target: $429.36 (22.7% higher than our fair-value estimate).
Our most-likely fair value is $349.91 a share — about 1.9% away from today's price of $343.50, 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 (22.8x) is higher than trailing (17.2x) - 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)
17.24x
Forward P/E
22.79x
P/B
6.75x
P/S
9.42x
EV/EBITDA
23.66x
PEG ratio
1.21x
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