P/E Ratio
Higher than 45% of Communication Services sector peers
Updated 193h ago
Sector Performance
45th percentileGOOG
29.4x
Sector Median
31.1x
Sector Avg
62.8x
Deep Analysis
The P/E ratio (price-to-earnings) of 29.4x means investors are paying $29.40 for every $1 of Alphabet’s annual earnings.
This is below the sector median of 32.8x, placing Alphabet at the 43rd percentile among Communication Services peers—slightly cheaper than the typical company. Over the last eight quarters the trend has been decreasing, though quarter-over-quarter the ratio rose 15.7% (from 25.4x to 29.4x), while the year-over-year change is not available. The combination of a P/E below the sector median with a long-term decreasing trend suggests valuation risk has been falling, but the recent sharp quarterly increase could indicate a near-term shift toward higher expectations. This metric supports the overall BULLISH verdict: a below-median ratio leaves room for multiple expansion, and the longer-term compression often accompanies improving earnings that justify a higher stock price.
Frequently Asked Questions
What does the P/E Ratio tell investors about GOOG?
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
How is the P/E Ratio calculated?
P/E Ratio is calculated as: Price / EPS.
How does GOOG's P/E Ratio compare to its sector?
GOOG's P/E Ratio of 29.4x compares to a Communication Services sector median of 31.1x, placing it in the 45th percentile.
Who are GOOG's closest peers by P/E Ratio?
The closest Communication Services peers by P/E Ratio include: NYT (32.8x), SPOT (32.8x), NFLX (26.0x), GOOGL (25.5x), PINS (39.5x).
The Formula
Price / EPS
Why It Matters
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
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29.4x
Sector Median
31.1x
Sector Avg
62.8x
How GOOG's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.