GOOGLBULLISH

GOOGL PEG Ratio Analysis

0.33x

Higher than 33% of Communication Services sector peers

Updated 256h ago·SEC filings & market data

Key Takeaway

The PEG ratio measures a stock's price relative to its earnings growth—a lower number suggests the stock is cheaper for each unit of expected growth.

Sector Performance

33th percentile

GOOGL

0.33x

Sector Median

0.38x

Sector Avg

0.83x

Prior Period

0.31x(Jun 2026)

↓ Declining

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Deep Analysis

The PEG ratio measures a stock's price relative to its earnings growth—a lower number suggests the stock is cheaper for each unit of expected growth.

At 0.33x, Alphabet's PEG sits below the Communication Services sector median of 0.37x, placing it in the 33rd percentile among peers. The metric has been stable over the last eight quarters, with a year-over-year decline of 2.9% and a quarter-over-quarter increase of 6.5%. This combination of a low PEG and a stable trend indicates limited downside risk from overvaluation, while the slight quarterly uptick shows no sharp deterioration. As a result, the metric directly supports the overall BULLISH verdict by reinforcing that Alphabet remains attractively priced relative to its growth profile.

Frequently Asked Questions

What does the PEG Ratio tell investors about GOOGL?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

How does GOOGL's PEG Ratio compare to its sector?

GOOGL's PEG Ratio of 0.33x compares to a Communication Services sector median of 0.38x, placing it in the 33th percentile.

Who are GOOGL's closest peers by PEG Ratio?

The closest Communication Services peers by PEG Ratio include: META (0.38x), NFLX (0.28x), RDDT (0.06x), BIDU (0.77x), TWLO (0.82x).

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Learn More About PEG Ratio

PEG Ratio Explained: The Metric That Fixes P/E's Biggest Flaw

P/E tells you what you're paying. PEG tells you whether it's worth it. Here's how to calculate it, interpret it, and why most investors use it wrong.

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

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