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Alphabet Inc (GOOGL) Fair Value & Analysis

Communication Services · US · Market cap $4.5T

AI Alphabet Inc logo Alphabet Inc GOOGL · US
Price$357.75
Fair Value$145.14
Upside-59.4%
Quality70/100
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Expensive Growth
Highly profitable · 37.9% net margin
Low debt · generates free cash flow
0.23% dividend yield
Mixed vs. peers (6/15)
Wide moat 97/100
Evidence: High Range $106.90 – $377.00 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 22 days ago

Fair value updated Jul 16, 2026, revised from $141.08 to $145.14 (+2.9%) since Jul 5, 2026. Share price −2.5% over the past month.

A solid business, but screening 59% overvalued on our models.

What matters now

  • A high-quality business (quality 70/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The model range is unusually wide ($106.90 to $377.00). The outcome hinges heavily on assumptions, so read the point estimate with caution.
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Price vs Fair Value (5 years)

$402.38 $82.70 Fair Value $145.14 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range $82.70 – $402.38 · fair‑value band $106.90 – $377.00 · the $357.75 price screens above the $145.14 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Alphabet Inc (GOOGL) currently trades at $357.75, while our model-based Fair Value estimate is $145.14, implying the stock looks roughly 59.4% overvalued today. We read business quality at 70/100 (solid quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Alphabet Inc generated revenue of $422B at a net margin of 37.9%. Revenue grew 21.8% year over year. It earns a return on equity of 38.9%. Net debt stands at $28.6B. Fundamentals as of Jul 16, 2026

Our scenario range runs from $106.90 (bear case) to $377.00 (bull case); at $357.75, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 12% below its 52-week high and 121% above its 52-week low, currently above its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 2% fair-value upside, at -59%, GOOGL screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $99.54 $193.79 $392.45 80
Residual Income $90.63 $142.14 $1,887 76
Rev-Margin DCF $73.53 $146.91 $272.20 74
All 26 models by family
DCF Models
FCF DCF $105.69 $171.20 $385.43 38
Owner Earnings $82.87 $195.91 $443.82 31
5Y Revenue Exit $73.53 $128.23 $240.76 39
5Y EBITDA Exit $117.76 $218.94 $414.71 41
5Y P/E Exit $149.98 $348.94 $619.89 38
10Y Revenue Exit $80.74 $172.75 $239.08 36
10Y EBITDA Exit $116.21 $267.78 $550.67 37
10Y P/E Exit $140.09 $337.00 $686.43 35
Earnings-Based
Graham-Dodd $73.49 $512.49 $719.21 54
Lynch FV $181.71 $259.58 $337.46 50
PEG = 1.0 $181.71 $259.58 $337.46 46
EPV $82.52 $97.31 $110.46 59
Dividend Discount
Gordon GGM $7.90 $17.26 $29.03 70
DDM Multi-Stage $7.90 $14.13 $17.98 61
Multiples
P/E Multiple $162.11 $216.14 $270.18 63
P/S Multiple $61.78 $82.37 $102.96 58
P/B Multiple $76.40 $101.86 $127.33 55
EV/EBIT $141.28 $188.81 $236.34 53
EV/EBITDA $118.53 $158.47 $198.41 54
EV/Revenue $56.37 $81.08 $105.79 43
Asset-Based
NCAV (Graham) $16.98 $22.75 $33.95 50
Growth DCF
Growth DCF $99.54 $193.79 $392.45 80
Rev-Margin DCF $73.53 $146.91 $272.20 74
Economic Profit
Residual Income $90.63 $142.14 $1,887 76
ROIC Compounder $108.94 $168.04 $239.57 72
Growth Earnings
Growth-Adj P/E $231.33 $330.47 $429.61 68

Widest divergence: Growth Earnings ($330.47) versus Dividend Discount ($14.13). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $422B
Revenue growth (YoY) +21.8%
Net margin 37.9%
Return on equity 38.9%
Free cash flow $73.3B FY2025
P/E ratio 28.3
More key figures
Operating margin 36.1%
EPS (TTM) $13.09
Dividend yield 0.2%
EPS growth (YoY) +82.0%
Net debt $28.6B FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 69 · Market factors (momentum, volatility) 66

Profitability 84
Margins and returns on capital today
Quality Growth 56
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 82
Balance sheet, leverage, solvency risk
Investment 8
Disciplined investing over empire-building
Low Volatility 52
Calm price path (market factor)
Momentum 62
Price trend over the last 3–12 months (market factor)
52W Momentum 89
Distance to the 52-week high (market factor)
Net Issuance 99
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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.

Full company description

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 Google Play and YouTube; and devices, as well as the provision of YouTube consumer subscription services, such as YouTube TV, YouTube Music and Premium, NFL Sunday Ticket, and Google One. The Google Cloud segment offers consumption-based fees and subscriptions for AI solutions, including AI infrastructure, Vertex AI platform, and Gemini enterprise. It also provides cybersecurity, and data and analytics services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet; and other enterprise services. The Other Bets segment sells transportation and internet services. Alphabet Inc. was incorporated in 1998 and is headquartered in Mountain View, California.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Alphabet Inc reported revenue of $403B in FY2025 versus $258B in FY2021, a compound +11.8%/yr. Reported net income was $132B in FY2025, compounding +14.8%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
$403B
Latest YoY
+15.1%
Avg. growth/yr (3Y)
+12.5%
Avg. growth/yr (5Y)
+17.2%
Avg. growth/yr (25Y)
+48.9%
Revenue +11.8%/yr
FY21 $258B
FY22 $283B
FY23 $307B
FY24 $350B
FY25 $403B
Net income +14.8%/yr
FY21 $76.0B
FY22 $60.0B
FY23 $73.8B
FY24 $100B
FY25 $132B

GOOGL screens 59% overvalued. Compare with Meta Platforms, Inc →

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Cite: Fair Value Calculator (2026). "Alphabet Inc Fair Value". https://www.fairvalue-calculator.com/stock/GOOGL

Peer Group

Internet Content & Information · 150 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 70 · Top 25%
Fair Value upside −59% · Bottom 25%
Return on equity (TTM) 39% · Top 25%
Return on assets 15% · Top 25%
Net margin (TTM) 38% · Top 25%
Operating margin (TTM) 36% · Top 25%
Revenue growth 22% · Top 25%
Dividend yield (TTM) 0.2% · Bottom 25%
Debt / equity 0.11× · Higher than median

Valuation Multiples vs Internet Content & Information median · lower = cheaper

P/E (TTM) 28.3× · Pricier than median
P/B 10.90× · Pricier than 75% of peers
P/S (TTM) 10.72× · Pricier than 75% of peers
P/FCF 61.8× · Pricier than 75% of peers
EV/EBITDA 28.2× · Pricier than 75% of peers
PEG 1.39× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 100 · sector 31
PAST 100 · sector 10
HEALTH 94 · sector 99
DIVIDEND 5 · sector 43

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Internet Content & Information stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Meta Platforms, Inc META $669.21 $534.91 -20%
Tencent Holdings 0700 HK$460.20 HK$467.50 +2%
Spotify Technology S.A SPOT $485.38 $209.56 -57%
Baidu, Inc BIDU $113.30 $451.51 +299%
Reddit, Inc RDDT $195.34 $39.59 -80%
Kuaishou Technology, an investment holding company, 1024 HK$44.70 HK$101.03 +126%
NAVER Corporation 035420 191,300 KRW 231,585 KRW +21%
Tencent Music Entertainment Group 1698 HK$34.74 HK$65.78 +89%
REA Group REA A$149.14 A$88.53 -41%
Pinterest, Inc PINS $22.52 $14.71 -35%

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Frequently asked questions

Is Alphabet Inc (GOOGL) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of $145.14 versus a price of $357.75, about −59% (overvalued).
What is the fair value of GOOGL?
Our model-based fair value for Alphabet Inc is $145.14 (as of Jul 16, 2026), built from audited fundamentals. The current price is $357.75.
What is the quality score of GOOGL?
Alphabet Inc has a Quality Score of 70/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Alphabet Inc (GOOGL)?
Alphabet Inc reported trailing-twelve-month revenue of about $422B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of GOOGL?
The net profit margin of Alphabet Inc is about 37.9%, meaning it keeps roughly 37.9% of revenue as net income. Based on the latest reported figures.
Does Alphabet Inc pay a dividend?
Alphabet Inc currently shows a dividend yield of about 0.23% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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