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Alphabet Inc.

Rank #268Capital Return

GOOGL · Nasdaq · Communication Services

Alphabet Inc. (GOOGL) — Rank #268 by gross profitability (GP/assets 0.26) · ROE 20.6% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0001652044 · all metrics point-in-time as of the filing date.

About

Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America.

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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.

Industry
Internet Content & Information
Sector
Communication Services
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
abc.xyz

Price History

GOOGL+137.7% · +18.9% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$4.22T

P/E (annual)

31.9

P/S (annual)

10.5

P/B

6.6

P/OCF (annual)

25.6

Shareholder Yield

2.0%

Employees

198,933

Industry

Internet Content & Information

Exchange

Nasdaq

Signal Flags

4 green1 yellow1 red
Revenue growth acceleratingGrowth rate increasing year over year
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
RPO outpacing revenueRemaining performance obligations growing faster than recognized revenue — forward demand building
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why
Operating margin decliningOperating margin lower than prior year

Quality Profile

Profitability

1/1 pass
GP / assets
0.26
Return on equity
20.6%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.44
Current ratio
2.72×
Net cash
$273.77B

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
6.2%

Growth

2/2 pass
Revenue growth
15.1%
Piotroski F-Score
6 / 9
Share dilution
-1.7%

Terry Smith quality gate

Passes 3/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

22.1%

fairly valued

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -1.7% — per-share value needs a total required return of 20.4% once share-count change is priced in.

vs. own 6-year median revenue growth: 15.1%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

17.0%

r = 10% (base)

22.1%

r = 12%

26.6%

Net debt / market cap: -6.5%

Base FCF: $73.3B3Y mean FCF: $73.3B

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

30.6xFair
1.3xmed 2.4x57.1x

P / S

Price / revenue per share

10.1xExpensive
0.3xmed 0.4x13.7x

P / B

Price / book value per share

9.8xExpensive
0.2xmed 0.4x14.9x

P / GP

Price / gross profit per share

16.9xExpensive
0.5xmed 0.7x24.2x

P / FCF

Price / free cash flow per share

55.3xExpensive
1.1xmed 2.0x60.6x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.26

Primary signal (Novy-Marx).

10th of 14 SIC 7370 peers

Return on equity

20.6%

Gross margin

59.7%

11th of 14 SIC 7370 peers

Revenue growth (YoY)

15.1%

RPO growth (YoY)

160.5%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2021202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

—

Revenue CAGR (5Y)

—

Earnings CAGR (3Y)

30.1%

FCF CAGR (3Y)

—

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.44

4th of 13 SIC 7370 peers (best = lowest)

Current ratio

2.72×

9th of 14 SIC 7370 peers

Quick ratio

2.47×

Net cash

$273.77B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$73.27B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.45

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

6.2%

Stock-based comp intensity.

Dividend safety

Composite score

3.2 / 5

Good
Payout ratio
7.6%5/5 Strong
FCF coverage
7.29×5/5 Strong
Dividend growth streak
1 yr1/5 Weak
Balance-sheet health
D/E 0.44 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20192025
Capital Return
Hypergrowth
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