Alphabet Inc.GOOGL
NMS • Communication Services
$350.50
P/E
17.40
PEG
0.06
FCF Yield
1.7%
Rev Growth YoY
+24.2% YoY
Gross Margin
61.6%
Health Score
8/10
D/E Ratio
0.15
Confidence
MEDIUM
Business Snapshot
Alphabet Inc. operates in the Communication Services sector within the Internet Content & Information industry, generating revenue primarily through digital advertising, cloud computing, and subscription services. It is a dominant player in the global digital advertising market, holding a commanding competitive position alongside its cloud infrastructure and AI research divisions. With a market capitalisation of $4.29T, it ranks among the largest publicly traded companies globally, supported by TTM revenue of $445.87B. The company's defining characteristic is its dual-class share structure combined with an entrenched search and advertising ecosystem that generates enormous cash flows, funding aggressive reinvestment into AI, cloud, and autonomous technology ventures.
Financial Health
Gross margin stands at 61.6%, down slightly from 62.4% in the prior year, while net margin is a robust 54.8% — an exceptionally high figure for a company of this scale. The balance sheet is fortress-like, with a debt/equity ratio of just 0.15x and a current ratio of 2.72x, indicating ample liquidity and minimal leverage...
Risk Assessment
- EARNINGS QUALITY — Only 2 of the last 4 quarters beat estimates, indicating moderate guidance credibility and potential for negative surprises.
- VALUATION DIVERGENCE — The FMP DCF fair value is N/A while the Python DCF estimate is $394.35, leaving a single-model valuation range with high sensitivity to terminal growth assumptions.
- 52-WEEK POSITION — The current price of $350.50 is below the midpoint of the 52-week range ($322.23), sitting 14.2% below the 52-week high of $408.61.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER — Insiders recorded 0 buys versus 1 sell over the last 90 days, a net selling signal that may indicate reduced insider confidence.
- FCF / CASH BURN — FCF yield of 1.7% is above 1% but remains modest relative to the $4.29T market cap, limiting the cash return potential for shareholders....
Gross margin stands at 61.6%, down slightly from 62.4% in the prior year, while net margin is a robust 54.8% — an exceptionally high figure for a company of this scale. The balance sheet is fortress-like, with a debt/equity ratio of just 0.15x and a current ratio of 2.72x, indicating ample liquidity and minimal leverage. Free cash flow of $73.27B confirms the company generates substantial cash, though the FCF yield of 1.7% is modest relative to the $4.29T market cap. Return on equity of 48.7% demonstrates highly efficient capital deployment. Overall, the financial position supports significant reinvestment capacity and potential for continued shareholder returns, with negligible dilution risk given the cash generation profile.
- EARNINGS QUALITY — Only 2 of the last 4 quarters beat estimates, indicating moderate guidance credibility and potential for negative surprises. - VALUATION DIVERGENCE — The FMP DCF fair value is N/A while the Python DCF estimate is $394.35, leaving a single-model valuation range with high sensitivity to terminal growth assumptions. - 52-WEEK POSITION — The current price of $350.50 is below the midpoint of the 52-week range ($322.23), sitting 14.2% below the 52-week high of $408.61. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER — Insiders recorded 0 buys versus 1 sell over the last 90 days, a net selling signal that may indicate reduced insider confidence. - FCF / CASH BURN — FCF yield of 1.7% is above 1% but remains modest relative to the $4.29T market cap, limiting the cash return potential for shareholders.
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