P/E Ratio
Higher than 27% of Communication Services sector peers
Updated 169h ago
Sector Performance
27th percentileGOOGL
25.5x
Sector Median
31.1x
Sector Avg
62.8x
Deep Analysis
The P/E ratio compares Alphabet’s stock price to its earnings per share; at 25.5x, investors are paying $25.50 for every $1 of annual earnings.
This is below the Communication Services sector median of 32.8x, placing Alphabet in the 29th percentile among sector peers — meaning it is cheaper than 71% of those companies. The metric has been stable over the last eight quarters, with a year-over-year decline of 6.8% and a quarter-over-quarter decline of 8.3%. A below-median P/E that is gradually declining can signal a potential buying opportunity, as the stock’s valuation is compressing relative to earnings and peers. This combination supports the overall BULLISH verdict by suggesting Alphabet offers a lower entry point without a deterioration in business fundamentals.
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 25.5x compares to a Communication Services sector median of 31.1x, placing it in the 27th percentile.
Who are GOOGL's closest peers by P/E Ratio?
The closest Communication Services peers by P/E Ratio include: GOOG (29.4x), NYT (32.8x), SPOT (32.8x), NFLX (26.0x), 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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25.5x
Sector Median
31.1x
Sector Avg
62.8x
How GOOGL's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.