GOOGLNEUTRAL

GOOGL P/E Ratio Analysis

16.9x

Higher than 0% of Communication Services sector peers

Updated 154h ago·SEC filings & market data

Key Takeaway

The P/E ratio measures the price you pay for each dollar of a company's earnings, so a 16.9x figure means investors pay $16.90 for every $1 of Alphabet's annual profit.

Sector Performance

0th percentile

GOOGL

16.9x

Sector Median

21.8x

Sector Avg

20.7x

Prior Period

17.8x(Aug 2026)

↑ Improving

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Deep Analysis

The P/E ratio measures the price you pay for each dollar of a company's earnings, so a 16.9x figure means investors pay $16.90 for every $1 of Alphabet's annual profit.

This is below the Communication Services sector median of 21.8x, placing the stock at the 0th percentile among its sector peers, meaning it is cheaper than nearly all of them. The metric is decreasing: it fell 4.7% quarter-over-quarter from 17.8x, while the year-over-year change is not available. A lower P/E combined with a declining trend can signal that earnings are growing faster than the share price, or that the market is losing enthusiasm for the stock. This mix creates a potential value opportunity, but the downward momentum also carries the risk of further compression. The current low valuation and falling trend support the NEUTRAL verdict, as the stock is neither clearly undervalued on a forward basis nor showing the deterioration that would warrant a bearish stance.

Frequently Asked Questions

What does the P/E Ratio tell investors about GOOGL?

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 GOOGL's P/E Ratio compare to its sector?

GOOGL's P/E Ratio of 16.9x compares to a Communication Services sector median of 21.8x, placing it in the 0th percentile.

Who are GOOGL's closest peers by P/E Ratio?

The closest Communication Services peers by P/E Ratio include: META (21.8x), NFLX (23.5x).

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Learn More About P/E Ratio

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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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