Alphabet Inc Class C GOOG

Morningstar Rating

Company Report

Alphabet Is an AI Leader With Its Full-Stack AI Approach Driving Success Across Its Segments

We view Alphabet as a conglomerate of stellar businesses. With solutions ranging from advertising to cloud computing and self-driving cars, Alphabet has built itself into a true behemoth, generating tens of billions of dollars in free cash flow annually. While antitrust concerns around Alphabet’s core search business have made headlines, we retain our confidence in Alphabet’s overall strength and foresee the firm remaining at the forefront of a variety of verticals, including search, artificial intelligence, video, and cloud computing.

Price vs Fair Value

GOOG is trading at a LOCK|LSp^Z>? premium.
Price
$335.31
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
LOCK|s.z
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Alphabet’s core advertising business is deeply entrenched in advertising budgets, allowing the firm to benefit from a secular increase in digital advertising spending

Bears

While Alphabet is seeking to diversify its business away from search, text-based advertising remains the largest contributor to the firm’s top line, creating a concentration risk.

News

Articles & Videos

Trading Information

Previous Close Price
Day Range
52-Week Range
Bid/Ask
/
Shares Outstanding
12.23B
Market Cap
Volume/Avg
/

Key Statistics

Price/Earnings (Normalized)
32.46
Price/Sales
9.21
Dividend Yield (Trailing)
0.26%
Dividend Yield (Forward)
0.26%
Dividend Payment Schedule
Mar, Jun, Sep, Dec
Total Yield
0.26%

Company Profile

Alphabet is a holding company that wholly owns internet giant Google. The California-based company derives slightly less than 90% of its revenue from Google services, the vast majority of which is advertising sales. Alongside online ads, Google services houses sales stemming from Google’s subscription services (YouTube TV and YouTube Music, among others), platforms (sales and in-app purchases on Play Store), and devices (Chromebooks, Pixel smartphones, and smart home products such as Chromecast). Google’s cloud computing platform accounts for roughly 10% of Alphabet’s revenue. The firm’s investments in up-and-coming technologies such as self-driving cars (Waymo), health (Verily), and internet access (Google Fiber) make up the rest.
Sector
Communication Services
Industry
Internet Content & Information
Stock Style Box
Large Core
Total Number of Employees
198,933

Competitors

Valuation

Metric
GOOG
AMZN
AAPL
Price/Earnings (Normalized)
32.4636.1037.16
Price/Book Value
6.595.0543.47
Price/Sales
9.213.6210.13
Price/Cash Flow
21.5814.6830.44
Price/Earnings
GOOG
AMZN
AAPL

Financial Strength

Metric
GOOG
AMZN
AAPL
Quick Ratio
2.470.870.81
Current Ratio
2.721.031.00
Interest Coverage
131.6352.28
Quick Ratio
GOOG
AMZN
AAPL

Profitability

Metric
GOOG
AMZN
AAPL
Return on Assets (Normalized)
22.33%10.39%38.44%
Return on Equity (Normalized)
32.12%20.90%158.76%
Return on Invested Capital (Normalized)
27.38%14.69%77.78%
Return on Assets
GOOG
AMZN
AAPL

Internet Content & Information Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Alphabet Inc Class A
GOOGL
LOCK|c<VTQ%SPLOCK|TJz$4T
Meta Platforms Inc Class A
META
LOCK|m&hmXtLOCK|J#Z$2T
Tencent Holdings Ltd ADR
TCEHY
LOCK|FTcJVy%LOCK|!b%$509B
Spotify Technology SA
SPOT
LOCK|#@Xf&GzyLOCK|PTx<$112B
Nebius Group NV Shs Class-A-
NBIS
LOCK|%y!&?L^LOCK|Hj>$62B
Baidu Inc ADR
BIDU
LOCK|>Wr%gSLOCK|!^$33B
Reddit Inc Class A Shares
RDDT
LOCK|k>!YM%LOCK|@XTD$30B
Tencent Music Entertainment Group ADR
TME
LOCK|z@&K@QLOCK|H?F<v$14B
Pinterest Inc Class A
PINS
LOCK|$dZh&^sLOCK|r$F!s$12B

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