GOOGL — Alphabet Inc.
Snapshot dated October 21, 2026.
Alphabet Inc. operates as the parent company of Google, generating the vast majority of its revenue through digital advertising services, including Google Search, YouTube, and the Google Network. Beyond advertising, the company generates revenue through Google Cloud, which provides enterprise-level infrastructure and platform services, as well as Google Play and hardware sales like Pixel devices and Nest home products. Its "Other Bets" segment includes experimental ventures such as Waymo, which is developing autonomous driving technology, and Verily, focused on life sciences. With a massive global footprint and more than 180,000 employees, the company maintains a dominant position in the online search market, competing primarily with platforms like Microsoft’s Bing and Meta’s advertising ecosystem. A notable recent strategic development involves the company’s heavy integration of Gemini artificial intelligence models across its core search and productivity software suite to maintain its competitive stance in information retrieval.
Fair Value / Share
$118.76
Price on October 21, 2026
$333.09
Upside to fair value
-64.35%
Data by Equibles and SEC filings. Figures are as of October 21, 2026 and are not live.
Earnings Yield
Earnings Yield shows how much profit a company generates relative to its share price. EPS ÷ Stock Price.
Stock Price
$333.09
Market Cap
$4,099,943,265,000
Net Income (TTM)
$244,205,000,000
Diluted Shares
12.31 billion
EPS (TTM)
$19.84
Earnings Yield
5.96%
6.0% vs ~4-5% bonds · Internet Content & Information median 4.9% (26 companies, excl. GOOGL)
Show the 26 companies behind the medianHide the companies behind the median
| Company | Net income (TTM) | Market cap | Earnings yield |
|---|---|---|---|
| METAMeta Platforms, Inc. | $68.1B | $1.8T | 3.9% |
| SPOTSpotify Technology S.A. | $3.1B | $108.2B | 2.9% |
| RDDTReddit, Inc. | $871.1M | $29.9B | 2.9% |
| TMETencent Music Entertainment Group | $1.3B | $13.7B | 9.3% |
| PINSPinterest, Inc. | $248.9M | $13B | 1.9% |
| SNAPSnap Inc | -$311.2M | $10.8B | -2.9% |
| MTCHMatch Group, Inc. | $707.8M | $10.7B | 6.6% |
| ZGZillow Group, Inc. | $55M | $7.3B | 0.8% |
| PPLIPeople Inc | $336.3M | $2.9B | 11.5% |
| RUMRUM Group Inc. | -$158.4M | $2.9B | -5.5% |
| CARGCarGurus, Inc. | $175.9M | $2.8B | 6.2% |
| ATHMAutohome Inc. | $137.6M | $2.3B | 5.9% |
| STUBStubHub Holdings, Inc. | -$1.8B | $2.3B | -77.9% |
| DJTTrump Media & Technology Group Corp. | -$1.3B | $1.8B | -72.5% |
| WBTNWEBTOON Entertainment Inc. | -$343.9M | $1.3B | -26.0% |
| UPWKUpwork, Inc | $101.8M | $1.1B | 9.3% |
| YELPYelp Inc | $126.5M | $1.1B | 11.7% |
| NXDRNextdoor Holdings, Inc. | -$30.4M | $1B | -3.0% |
| TBLATaboola.com Ltd. | $118.8M | $932M | 12.7% |
| EVEREverQuote, Inc. | $114.5M | $800.6M | 14.3% |
| BMBLBumble Inc. | -$517.7M | $784.6M | -66.0% |
| MAXMediaAlpha, Inc. | $97.6M | $722.3M | 13.5% |
| GRPNGroupon, Inc. | -$125.7M | $682.4M | -18.4% |
| NRDSNerdwallet, Inc. | $65M | $673.1M | 9.7% |
| CARSCars.com Inc. | $34.3M | $564.2M | 6.1% |
| ZIPZiprecruiter, Inc. | $28M | $379.9M | 7.4% |
Peer yields are net income ÷ market cap from the Equibles screener, as of 2026-10-21; GOOGL's own figure is EPS ÷ price from SEC filings, so small gaps between the two methods are expected. Data by Equibles.
AI Analysis
Alphabet Inc. has an earnings yield of 5.96%, derived from an EPS (TTM) of $19.84 divided by a stock price of $333.08. This result sits above the 4-5% range typically available from safe, guaranteed investments like government bonds. For this yield to rise, the earnings per share would need to increase or the stock price would need to decrease. Conversely, if the price increases without a corresponding rise in earnings, the yield would compress toward the bond benchmark. While the company's yield is 1.1 percentage points above the 4.89% median yield observed across 26 peers in the Internet Content & Information industry, this figure serves only as a relative industry benchmark. This measure does not capture future growth expectations, balance sheet strength, or potential shifts in profit margins.
Return on Capital
EBIT ÷ (Net Working Capital + Net Fixed Assets) — how efficiently the business turns capital into profit.
EBIT (TTM)
$147,628,000,000
Net Working Capital
$163,950,000,000
Net Fixed Assets
$321,212,000,000
Invested Capital
$485,162,000,000
Return on Capital
30.43%
30.43% ROC · 1/2: above the 15% floor, in line with the Internet Content & Information median of 31.1% (21 companies, excl. GOOGL)
Show the 25 companies behind the medianHide the companies behind the median
| Company | EBIT (TTM) | Invested capital | ROC |
|---|---|---|---|
| METAMeta Platforms, Inc. | $86.9B | $279.4B | 31.1% |
| SPOTSpotify Technology S.A.The SEC has filings for SPOT but none carrying a balance sheet, so there is nothing to build these figures on. Foreign private issuers filing under IFRS are the usual case. | — | — | Skipped |
| RDDTReddit, Inc. | $785M | $1.7B | 45.4% |
| TMETencent Music Entertainment GroupThe SEC has filings for TME but none carrying a balance sheet, so there is nothing to build these figures on. Foreign private issuers filing under IFRS are the usual case. | — | — | Skipped |
| PINSPinterest, Inc. | $224.2M | $1.4B | 16.1% |
| SNAPSnap Inc | -$323.8M | $2.6B | -12.7% |
| MTCHMatch Group, Inc. | $987.9M | -$34.5M | Capital-free |
| ZGZillow Group, Inc. | $12M | $619M | 1.9% |
| PPLIPeople Inc | -$157.1M | $331.8M | -47.4% |
| RUMRUM Group Inc. | -$173.5M | $930.5M | -18.6% |
| CARGCarGurus, Inc. | $236.3M | $100.5M | 235.2% |
| ATHMAutohome Inc. | $110M | $2.2B | 4.9% |
| STUBStubHub Holdings, Inc. | -$1.4B | -$1.5B | Loss on negative capital |
| DJTTrump Media & Technology Group Corp.Its reported balance sheet for 2026-06-30 does not pass the app's consistency checks, so its return on capital is withheld. | -$947M | — | Skipped |
| WBTNWEBTOON Entertainment Inc. | -$51.7M | -$45.4M | Loss on negative capital |
| UPWKUpwork, Inc | $118.9M | $214M | 55.6% |
| YELPYelp Inc | $172.8M | $130.7M | 132.2% |
| NXDRNextdoor Holdings, Inc. | -$45.6M | $331.3M | -13.8% |
| TBLATaboola.com Ltd. | $126.9M | $21.7M | 584.6% |
| EVEREverQuote, Inc. | $83.1M | $11.2M | 742.8% |
| BMBLBumble Inc. | -$558.8M | $9.5M | -5889.3% |
| MAXMediaAlpha, Inc.Its invested capital could not be established from its filings. | $84.4M | — | Skipped |
| GRPNGroupon, Inc. | $4.7M | -$247.2M | Capital-free |
| NRDSNerdwallet, Inc. | $88M | $91.5M | 96.2% |
| CARSCars.com Inc. | $83.1M | $98.2M | 84.6% |
The same companies as the earnings yield comparison, each measured with GOOGL's own formula — EBIT ÷ (net working capital + net fixed assets) — from its latest SEC filings. Capital-free companies rank above every percentage; skipped companies are not in the median. Data by Equibles and SEC filings.
AI Analysis
Alphabet Inc. generated $147.6B in EBIT using $485.2B in invested capital, yielding a return on capital of 30.43%. This measure evaluates how efficiently the business converts operating capital into profit. Alphabet clears the 15% floor set by this framework, but at 30.43%, it sits in line with the Internet Content & Information median of 31.1%. Because it meets one of the two criteria—surpassing the 15% threshold but falling within the range of the industry median—the verdict is mixed. This metric focuses on tangible operating capital and does not capture the full value of intangible assets or significant R&D spending, which are typical in the technology sector. The figure would change if the company’s capital intensity shifts, such as through heavy investment in infrastructure, which would expand the denominator and lower the percentage.
Acquirer's Multiple
Enterprise Value ÷ Operating Earnings — how many years of operating earnings it would take to buy the whole business.
Closest competitors
| Company | Operating earnings | Enterprise value | Multiple |
|---|---|---|---|
| METAMeta Platforms, Inc.Both companies compete directly for global digital advertising budgets across search, social media, and online video platforms. | $86.9B | $1.8T | 20.9x |
| GOOGLAlphabet Inc. | $147.6B | $3.8T | 25.9x |
| PINSPinterest, Inc.Both compete for digital ad spending by helping users discover visual content, ideas, and products online. | $224.2M | $12.9B | 57.4x |
| SNAPSnap IncBoth compete for digital advertising dollars and user engagement on visual and video content platforms. | -$323.8M | $11.6B | — |
25.9x — above 10x ✗ · above peer median of 13 companies (12.0x) ✗
Show the 25 companies behind the medianHide the companies behind the median
| Company | Operating earnings | Enterprise value | Multiple |
|---|---|---|---|
| YELPYelp Inc | $172.8M | $1B | 5.9x |
| NRDSNerdwallet, Inc. | $88M | $628.6M | 7.1x |
| UPWKUpwork, Inc | $118.9M | $889.4M | 7.5x |
| EVEREverQuote, Inc. | $83.1M | $622.5M | 7.5x |
| MAXMediaAlpha, Inc. | $84.4M | $843.4M | 10.0x |
| CARGCarGurus, Inc. | $236.3M | $2.7B | 11.5x |
| CARSCars.com Inc. | $83.1M | $1B | 12.0x |
| MTCHMatch Group, Inc. | $987.9M | $14.5B | 14.7x |
| METAMeta Platforms, Inc. | $86.9B | $1.8T | 20.9x |
| RDDTReddit, Inc. | $785M | $29.1B | 37.0x |
| PINSPinterest, Inc. | $224.2M | $12.9B | 57.4x |
| GRPNGroupon, Inc. | $4.7M | $722.9M | 154.9x |
| TBLATaboola.com Ltd. | $126.9M | $1T | 7908.9x |
| SNAPSnap IncOperating loss — listed, but not in the median. | -$323.8M | $11.6B | — |
| PPLIPeople IncOperating loss — listed, but not in the median. | -$157.1M | $3.3B | — |
| RUMRUM Group Inc.Operating loss — listed, but not in the median. | -$173.5M | $1.9B | — |
| STUBStubHub Holdings, Inc.Operating loss — listed, but not in the median. | -$1.4B | $1.9B | — |
| DJTTrump Media & Technology Group Corp.Operating loss — listed, but not in the median. | -$947M | $3.6B | — |
| WBTNWEBTOON Entertainment Inc.Operating loss — listed, but not in the median. | -$51.7M | $801M | — |
| NXDRNextdoor Holdings, Inc.Operating loss — listed, but not in the median. | -$45.6M | $610.9M | — |
| BMBLBumble Inc.Operating loss — listed, but not in the median. | -$558.8M | $1.2B | — |
| SPOTSpotify Technology S.A.The SEC has filings for SPOT but none carrying a balance sheet, so there is nothing to build these figures on. Foreign private issuers filing under IFRS are the usual case. | — | — | Skipped |
| TMETencent Music Entertainment GroupThe SEC has filings for TME but none carrying a balance sheet, so there is nothing to build these figures on. Foreign private issuers filing under IFRS are the usual case. | — | — | Skipped |
| ZGZillow Group, Inc.Its reported balance sheet figures do not hold together for the latest quarter, so its enterprise value cannot be established. | $12M | — | Skipped |
| ATHMAutohome Inc.Its enterprise value could not be established from its filings. | $110M | — | Skipped |
| Peer median13 companies with positive operating earnings | 12.0x |
The same Internet Content & Information companies as the return on capital comparison, each measured with GOOGL's own formula — enterprise value ÷ operating earnings — from its latest SEC filings and a quote taken at the same time. Companies with an operating loss are listed but left out of the median; skipped companies could not be measured. Data by Equibles and SEC filings.
Show the enterprise value bridge for each companyHide the enterprise value bridge
GOOGL
Debt $100.6B. This is reported total debt, including $2.6B of finance lease obligations ($449M + $2.1B in the filing). Finance leases are counted as debt because they are a borrowing in substance — the company has committed to fixed payments for an asset it effectively owns.
META
Debt $83.7B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $28.7B of operating lease liabilities as of 2026-06-30 ($26.2B non-current, $2.4B current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
SNAP
Debt $3.5B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $691.1M of operating lease liabilities as of 2026-06-30 ($643.3M non-current, $47.8M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
PINS
Debt $981.1M. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $215.5M of operating lease liabilities as of 2026-06-30. These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
Operating earnings — GOOGL
AI Analysis
Alphabet (GOOGL) has an enterprise value of $3.8T and operating earnings of $147.6B, resulting in an Acquirer's Multiple of 25.9x. Among the peers, Meta (META) has an enterprise value of $1.8T and operating earnings of $86.9B, resulting in a multiple of 20.9x, while Pinterest (PINS) has an enterprise value of $12.9B and operating earnings of $224.2M, resulting in a multiple of 57.4x. Snap (SNAP) is losing money right now, so no multiple can be calculated for it. Meta has the lowest multiple among the group, while Pinterest has the highest. Alphabet’s multiple satisfies zero of the two checks: it is above 10x, and above the peer median of 13 companies (12.0x). The gap between these multiples could narrow if shifts in operating margins or capital allocation strategies align the profit generation of these businesses more closely relative to their market-derived enterprise values.
FS-Score
A 10-check read on financial health, across profitability, balance-sheet stability and operating momentum.
FS-Score
6/10
Decent score — worth a deeper look before investing.
Section 1
Current Profitability
3/3
Profitability is Strong as Alphabet passes all three checks, generating positive net income and free cash flow relative to its assets while maintaining high-quality cash-backed earnings.
- Positive ROA of 22.20%
- Positive FCFTA of 12.31%
- Accruals ratio of 1.25, indicating cash flow from operations exceeds net income
A score of 3/3 indicates that the company is currently making money and generating real cash; this would only change if operating cash flow fell below net income or the company began reporting net losses.
Return on Assets (ROA > 0)
PassFree Cash Flow to Total Assets (FCFTA > 0)
PassAccruals (CFO / Net Income > 1)
PassSection 2
Stability
2/3
The Stability section is Mixed, reflecting a balance between a lower share count and improved liquidity against an increase in long-term debt relative to assets.
- Leverage increased to 0.08 from 0.02 a year ago
- Liquidity improved with the current ratio rising to 2.01 from 1.84
- Net Dilution was negative as the share count fell to 12.23 billion shares from 12.45 billion shares
While the company is reducing share count and improving its current ratio, a continued increase in long-term debt relative to total assets would further weigh on this score.
Change in Leverage (↓ or unchanged)
FailChange in Liquidity (↑ Current Ratio)
PassNet Dilution (annual diluted weighted-average shares, this year vs last)
PassSection 3
Recent Operational Improvements
1/4
Operational improvements are Weak, with the company failing three out of four checks as efficiency and returns on assets have moderated compared to the prior year.
- ROA declined slightly to 22.20% from 22.24%
- FCFTA decreased to 12.31% from 16.16%
- Gross Margin improved to 59.65% from 58.20%
- Asset Turnover fell to 0.68 from 0.78
This score indicates that while pricing power or cost control improved, the company is generating less revenue and cash flow per dollar of assets than it did last year.
Change in ROA (↑)
FailChange in FCFTA (↑)
FailChange in Gross Margin (↑)
PassChange in Asset Turnover (↑)
FailFramework conclusion
Alphabet earns a total FS-Score of 6/10, a result driven by strong current profitability that is offset by weakening year-over-year operational trends. This middle-tier score suggests that while the company is currently healthy and generating significant cash, its internal momentum is mixed rather than clearly improving. The score helps distinguish whether the current valuation represents a temporary mismatch in expectations or a response to these cooling operational metrics.
- Accruals ratio of 1.25 shows that earnings are well-supported by cash flow
- Current ratio increased to 2.01, signaling a stronger short-term buffer
- Asset Turnover fell to 0.68, showing lower revenue generation per dollar of assets
- Net Dilution passed as shares outstanding decreased to 12.23 billion shares
Intrinsic Value (DCF)
A 10-year discounted cash flow, then the bridge from business value to value per share.
Reported cash flow → unlevered free cash flow
Free Cash Flow (reported)
$53.3B
+ After-Tax Interest Expense
$1.9B
− After-Tax Interest Income
$4.2B
= Unlevered Free Cash Flow
$51B
Business value (10-year DCF)
PV of Years 1–10
$449.1B
PV of Terminal Value
$739.4B
= Business Value
$1.2T
Terminal value share
62.21%
Business value → share value
Intrinsic Value (business)
$1.2T
+ Cash & Equivalents
$55.9B
+ Non-operating investments
$318B
− Debt
$100.6B
= Shareholders' Value
$1.5T
÷ Diluted Shares
12.31 billion
= Fair Value / Share
$118.76
Divided by 12.31 billion diluted shares — the weighted-average diluted count from the most recent quarterly income statement, for the quarter ended 2026-06-30.
Risk bucket → discount rate
low (9%)
Year-1 FCF
$51B
Trailing twelve months.
FY2023 $69.5B · FY2024 $72.8B · FY2025 $73.3B
Growth rate (yrs 1–10)
8%
Terminal growth (after yr 10)
3%
Assumed FCF growth: 8%/yr · Revenue growth: last FY +15.1% · 5-yr avg +17.2%/yr
Revenue: FY2020 $182.5B · FY2021 $257.6B · FY2022 $282.8B · FY2023 $307.4B · FY2024 $350B · FY2025 $402.8B
The growth assumption applies to free cash flow, not revenue. Free cash flow can grow faster or slower than sales as margins change.
AI Analysis
Alphabet is assigned a 9% discount rate, reflecting its position in the low-risk bucket. This selection acknowledges the durability of the company's core search advertising model and the stability provided by its fortress balance sheet, which offsets macroeconomic cyclicality. The 8% growth rate for free cash flow is applied to the fixed Year-1 figure of $51B. While Alphabet has delivered revenue growth of 15.1% over the last fiscal year and averaged 17.2% annually over the last five years, this forecast is capped by the framework’s conservative constraints for a low-risk entity, reflecting the inevitable deceleration expected from market maturation and regulatory scrutiny. The terminal growth rate is fixed at 3% for all companies in this framework to align with long-run economic expectations. The fair value of $118.76 per share is derived by adding the present value of the operating business to the company’s cash and non-operating investments, and subtracting debt, before dividing by 12.31 billion diluted shares. Given the current price of $333.08, the upside to fair value is -64.35%. Because the current price is higher than the calculated fair value, there is no margin of safety available. Of the two primary inputs, the 9% discount rate would likely exert the most significant influence on the final result if it were varied, as the valuation of a business with this scale is typically more sensitive to the discount rate than to changes in the growth rate assumptions.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
5.96% vs ~4-5% bond-yield benchmark
Return on Capital
30.43% ROC · 1/2: above the 15% floor, in line with the Internet Content & Information median of 31.1%
Acquirer's Multiple
25.9x · 0/2: above 10x, above the peer median of 13 companies (12.0x).
FS-Score
6/10 — Solid but mixed
Intrinsic Value
-64.35% upside to fair value
The analysis reflects a divide between the operational and pricing dimensions of Alphabet. The Return on Capital of 30.43% and the FS-Score of 6/10 indicate a company performing close to its industry benchmarks, showing stable but unremarkable operational efficiency relative to the median. In contrast, the valuation metrics present a starkly different reading. The Acquirer's Multiple of 25.9x is significantly higher than the 12.0x peer median, and the -64.35% upside to fair value suggests the current price sits well beyond the estimated intrinsic value. This creates a clear tension where the operational quality is not currently mirrored by the price relative to the calculated benchmarks. The overall picture is heavily influenced by the valuation assessments, which place the stock far from the thresholds used by these specific frameworks. If the Intrinsic Value estimate were to shift upward, reflecting more optimistic long-term cash flow projections, it would be the most consequential change to the current evaluation.
Comments
Notes from readers on GOOGL — one each. Comments stay with the company, so they carry across to a later snapshot, and each one shows the date it was written.
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