GOOGGOOG
US • COMMUNICATION SERVICES
$353.33
P/E
26.95
PEG
0.33
FCF Yield
0.7%
Rev Growth YoY
+21.8% YoY
Gross Margin
60.4%
Health Score
9/10
D/E Ratio
0.12
Confidence
MEDIUM
Business Snapshot
The company dominates the internet content and information sector, generating revenue primarily through its search and advertising business, YouTube, cloud services, and other emerging technology bets. It operates in the highly competitive digital advertising and cloud computing markets, where it holds a dominant position alongside a handful of other tech giants, with a strong second position in cloud infrastructure. As a mega-cap company with a market capitalisation of $4.08 trillion and trailing twelve-month revenue of $422.50 billion, it possesses enormous financial scale and resources. A defining characteristic is its powerful network effects across search, advertising, and AI, creating a moat reinforced by massive data, compute infrastructure, and a sprawling product ecosystem.
Financial Health
The company's financial health is exceptional. Gross margin stands at a robust 60.4%, while the net margin of 37.9% reflects strong operating efficiency and profitability...
Risk Assessment
- VALUATION — Price/Sales of 9.67x and Price/Book of 8.53x are elevated multiples that factor in substantial future growth expectations.
- VALUATION DIVERGENCE — The current price of $353.33 is significantly above the Python DCF estimate of $150.42, creating a large uncertainty between market price and model-driven intrinsic value.
- 52-WEEK POSITION — The current price of $353.33 is well below the 52-week high of $404.23 and below the midpoint of the 52-week range ($288.81), indicating potential downward momentum from recent highs.
- TECHNICALS — Price is currently below its 50-day moving average of $366.63, a short-term bearish signal, despite being above the longer-term 200-day moving average of $313.34....
The company's financial health is exceptional. Gross margin stands at a robust 60.4%, while the net margin of 37.9% reflects strong operating efficiency and profitability. The balance sheet is fortress-like, with a debt-to-equity ratio of just 0.12x and a healthy current ratio of 2.01x, indicating ample liquidity and minimal financial leverage. Free cash flow is a massive $28.88 billion, although the free cash flow yield of 0.7% is low relative to the company's market price. Overall, this financial profile provides immense capacity for reinvestment in growth initiatives, strategic acquisitions, and shareholder returns such as buybacks and dividends.
- VALUATION — Price/Sales of 9.67x and Price/Book of 8.53x are elevated multiples that factor in substantial future growth expectations. - VALUATION DIVERGENCE — The current price of $353.33 is significantly above the Python DCF estimate of $150.42, creating a large uncertainty between market price and model-driven intrinsic value. - 52-WEEK POSITION — The current price of $353.33 is well below the 52-week high of $404.23 and below the midpoint of the 52-week range ($288.81), indicating potential downward momentum from recent highs. - TECHNICALS — Price is currently below its 50-day moving average of $366.63, a short-term bearish signal, despite being above the longer-term 200-day moving average of $313.34.
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