# Alphabet Inc. (GOOGL) fundamentals

Data as of 2026-10-23. NASDAQ, United States. Sector: Communication Services / Diversified Telecommunication Services. Price $322.94, market value $3.95 trillion.

## Valuation
- **P/E (trailing): 16.2×** (5-yr avg 24.2×, 3-yr avg 25.4×). Alphabet Inc. trades at 16.2× trailing earnings, well below its own five-year average of 24.2×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 21.0×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.61**. A PEG of 0.61 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 8.9×**. Each dollar of revenue is priced at 8.9×.
- **Price / book: 6.3×**. The shares trade at 6.3× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 1.3%** (5-yr avg 3.5%). Free cash flow equals 1.3% of the market value, below its five-year average of 3.5%, so the shares are pricier on cash than usual.
- **Earnings yield: 6.2%**. The inverse of the P/E: 6.2% of the price is earned each year.

## Profitability
- **Operating margin: 33.1%**. 33.1% of revenue is left after running the business, an exceptional level.
- **Net margin: 32.8%**. 32.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 31.8%**. 31.8% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 26.9%**. Return on all capital, debt included, is 26.9%: comfortably above what that capital costs.
- **Return on assets: 41.0%**. Each dollar of assets produces 41.0% of profit.

## Growth
- **Revenue growth (1 yr): 15.1%** (3-yr 12.5%/yr, 5-yr 17.2%/yr). Revenue grew 15.1% over the last year, against 17.2% a year compounded over five years.
- **EPS growth (1 yr): 34.5%** (3-yr 33.3%/yr, 5-yr 29.8%/yr). Earnings per share rose 34.5%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 6.9%/yr**. Free cash flow has compounded at 6.9% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.12**. Debt is 0.12 times equity: a conservative balance sheet.
- **Current ratio: 2.01** (quick 2.01). Current assets cover the next year's liabilities 2.01 times.
- **Altman Z-score: 15.79**. A Z-score of 15.79 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.27%** ($0.85 per share, trailing). Alphabet Inc. yields 0.27%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 8%** (19% of free cash flow). 8% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 2**. 2 straight years of increases.

## Analyst view
- **Analyst consensus: strong_buy** (54 analysts). 54 analysts cover Alphabet Inc.; the consensus is strong_buy, with an average price target of $430.05 (+33% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 29.1%** (YTD 3.7%, 3-mo 2.1%). The shares are up 29.1% over twelve months including dividends.
- **From 52-week high: -21.0%** (26.5% above the low). Trading 21% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 33**. An RSI of 33 is neutral.
- **Beta (1 yr): 1.34** (volatility 32%). Beta of 1.34 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=GOOGL · Page: https://foliofundamentals.com/stocks/googl

Not investment advice.