Stock · GOOGL · Communication Services

Alphabet Inc Class A

United States · Large Cap · listed since 2004 · Revenue 12 mo. $445.9B

Price as of 11/06/2026

StockScorer score
7.3
of 10 8 of 11 points High Match To the score
Price
$284.78
1 Y −9.6%
Market cap
$3.5T
Phase
Growth
revenue growing, core business profitable
Revenue +12.5% a year (3 years)EBIT margin 32.0%Payout 34.2% of operating cash flow

Summary

Alphabet Inc Class A is around the middle of the Communication Services sector overall

50.9 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

Capital spending of €82.1B is pushing down FCF: the price requires 20.4% FCF growth a year, 14.0% at a normal investment rate.

If free cash flow stays at €65.7B (2025), it supports €730.5B. The remaining €2.4T of the market value assume it grows 20.4% a year for 10 years and not at all afterwards.

Required FCF growth per year

20.4%

no growth afterwards

Market value breakdown€3.2T market value, price as of 11/06/2026

€730.5B without growth
€2.4T priced-in growth
  • 5 yrs achieved 8.3%
  • 10 yrs achieved 16.0%
  • priced in 20.4%

Valuation against its own history

Price to operating cash flow 18.9×, within its usual range.

Middle half of 20 quarters: 15.2× to 20.2×, median 18.2×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

1 sign supports the expectation, 1 speaks against it.

What supports it

with respect to the priced-in expectation

  • High, stable gross margin median 56.8%, range 7.5 pp (10 years)

What speaks against it

with respect to the priced-in expectation

  • Profit well above operating result 1.65 times EBIT, last 12 months

AI summary of the 2025 annual report

The business of Alphabet Inc Class A according to its report

A language model selected and condensed statements from the report. Each statement carries a verbatim quote. The selection is not complete and shows the state of the report. It gives no rating and does not feed into the score.

Form 10-K, fiscal year ended 12/31/2025, filed 02/05/2026. Open the report at the SEC

Business model according to the report

  • Google Services mainly earns money by showing performance and brand advertising on Google Search, YouTube and partner websites.

    Quote
    Google Services generates revenues primarily by delivering both performance and brand advertising that appears on Google Search & other properties, YouTube, and Google Network partners' properties
  • Google Cloud mainly earns money from usage-based fees and subscriptions for cloud infrastructure, platforms, applications and other cloud services.

    Quote
    Through our Google Cloud Platform and Google Workspace offerings, Google Cloud generates revenues primarily from consumption-based fees and subscriptions for infrastructure, platform, applications, and other cloud services.
  • Platforms mainly earn money from sales of apps and in-app purchases through Google Play.

    Quote
    platforms, which primarily include revenues from Google Play sales of apps and in-app purchases
  • The devices category mainly consists of sales of the Pixel family of devices.

    Quote
    devices, which primarily include sales of the Pixel family of devices.

Customers according to the report

  • The advertising solutions help millions of companies grow their businesses.

    Quote
    Our advertising solutions help millions of companies grow their businesses through our wide range of products across devices and formats
  • Many advertisers, distributors, digital publishers and content providers can end their contracts with the company at any time.

    Quote
    Many of our advertisers, companies that distribute our products and services, digital publishers, and content providers can terminate their contracts with us at any time.

Competition according to the report

  • Some competitors have longer operating histories and established relationships in various sectors.

    Quote
    Some competitors have longer operating histories and well-established relationships in various sectors.
  • Competing successfully depends heavily on the company's ability to keep developing and distributing new products and technologies across its businesses.

    Quote
    Competing successfully depends heavily on our ability to continually develop and distribute innovative products and technologies to the marketplace across our businesses.
  • Competitors may also be able to offer products and services faster or more cost-effectively than the company can.

    Quote
    Our competitors may also be able to innovate and provide products and services faster or more cost effectively than we can

Risks according to the report

  • More than 70% of total revenues in 2025 came from online advertising.

    Quote
    We generated more than 70% of total revenues from online advertising in 2025.
  • The company's ability to expand its technical infrastructure is increasingly limited by the availability of power, water and land.

    Quote
    Our ability to scale our technical infrastructure is increasingly constrained by the availability of power, water, and land.
  • Making servers and network equipment for the technical infrastructure, especially specialized AI chips, is limited to a small number of qualified suppliers.

    Quote
    manufacturing and supply of servers and network equipment for our technical infrastructure, particularly for specialized AI chips, is limited to a small number of qualified suppliers.
  • Device margins have had, and could continue to have, a negative effect on overall margins because of price pressure and higher costs of sales.

    Quote
    margins on our devices have had, and may continue to have, an adverse effect on our consolidated margins due to pricing pressures and higher cost of sales.

Since the last quarter

Q1 → Q2 2026

A mixed quarter: 2 figures better, 2 worse.

  • Revenue, 12 mo.$422.5B → $445.9B+5.5%better
  • FCF, 12 mo.$64.4B → $53.3B−17.3%worse
  • FCF margin15.3% → 12.0%−3.3 ppworse
  • Return on equity33.5% → 38.1%+4.7 ppbetter

4 more unchanged: Gross margin, EBIT margin, Net debt, Shares outstanding

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability78.4above the middleEarns more than the sector: Return on equity 31.83%, sector 11.44%.
MetricStockSector medianPosition in sector
Return on equity31.83%11.44%Rank 92
Return on capital (Greenblatt)35.34%22.01%Rank 73
EBIT margin32.03%17.12%Rank 90
FCF margin18.19%15.81%Rank 65
Gross margin59.65%44.45%Rank 73
Growth87.0above the middleGrows faster than the sector: Sustainable growth (ROE × retained earnings) 22.70%, sector 9.07%.
MetricStockSector medianPosition in sector
Revenue growth, 1 year15.09%4.46%Rank 80
Earnings growth, 3 years per year33.35%5.70%Rank 85
Earnings growth, 5 years per year29.82%6.76%Rank 90
Sustainable growth (ROE × retained earnings)22.70%9.07%Rank 93
Valuation20.5below the middleValued higher than the sector: EV/sales 8.55, sector 2.84.
MetricStockSector medianPosition in sector
Earnings yield3.79%3.92%Rank 44
FCF yield2.09%6.59%Rank 16
EV/saleslower is better8.552.84Rank 4
EV/EBITlower is better26.6916.58Rank 18
Momentum20.8below the middleShare price doing worse than the sector: Share price, 6 months −28.46%, sector −0.69%.
MetricStockSector medianPosition in sector
Share price, 1 year−9.60%−11.03%Rank 52
Share price, 6 months−28.46%−0.69%Rank 3
Share price, 3 months−14.49%4.43%Rank 5
Distance from 52-week high−29.27%−16.85%Rank 22
Quality28.8below the middleQuality below the sector: Price reaction to results, market-adjusted −12.59%, sector 0.56%.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better16.79%−0.38%Rank 5
Change in share countlower is better−1.74%−0.06%Rank 77
Dividend streak in years15Rank 30
Price reaction to results, market-adjusted−12.59%0.56%Rank 3
Balance sheet & risk69.6above the middleLess risk than the sector: Equity ratio 69.76%, sector 37.05%.
MetricStockSector medianPosition in sector
Equity ratio69.76%37.05%Rank 84
Net debt/EBITDAlower is better−0.371.47Rank 76
Debt to equitylower is better0.140.75Rank 76
Volatility, 1 yearlower is better33.70%31.95%Rank 43

Ten years in figures

Revenue from $90.3B (2016) to $402.8B (2025), 18.1% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCF, $BSharesNet debt
201690.326.3%25.814.0B−$9.0B
2017110.923.6%23.914.1B−$6.7B
2018136.820.1%22.814.1B−$12.7B
2019161.921.2%31.014.0B−$2.5B
2020182.522.6%42.813.7B$307.0M
2021257.630.6%67.013.6B$7.6B
2022282.826.5%60.013.2B$7.8B
2023307.427.4%69.512.7B$3.1B
2024350.032.1%72.812.4B$2.0B
2025402.832.1%73.312.2B$28.6B
7.3 / 10High MatchStockScorer score8 of 11 points

5 of 7 StockScorer Score rules met · How the score is built

Alphabet Inc Class A mainly meets criteria in the Profitability category. Result from 18 strategies checked.

This stock · Profitability: 100%This stock · Growth: 100%This stock · Valuation: 0%This stock · Momentum: 0%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How Alphabet Inc Class A's score is built

Alphabet Inc Class A is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

5 of 7 rules met

8 of 11 points

  1. Free cash flow yield above the sector mediannot met0 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector medianmet2 of 2 points
  3. Return on equity above the sector medianmet1 of 1 point
  4. Free cash flow margin above the sector medianmet2 of 2 points
  5. Revenue growth above 15%met2 of 2 points
  6. 3-year earnings growth above 12% p.a.met1 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketnot met0 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Alphabet Inc Class A stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • Altman Z-Score: Stress Test
  • Earnings Quality: Accrual Check (Sloan)
  • Growth Momentum (CAN SLIM principle)
  • Undervalued Stocks: Multi-Factor Check
  • Defensive: Low Volatility
  • Magic Formula: Value + Quality
  • High-Growth / Rule of 40
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Dividend Aristocrats & Continuity
  • Dividend Quality: 4 Factors
  • Levermann Strategy (13 Criteria)
  • Trending Value: Value + Momentum

Alphabet Inc Class A key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Alphabet Inc Class A.

MetricStockSector
P/E ratio26.421.7
P/B ratio8.42.5
Return on equity (ROE)31.8%11.4%
Equity ratio69.8%37.1%
Debt-to-equity (D/E)0.140.75
Dividend yield0.3%2.8%

Similar stocks in Communication Services

How comparable stocks in the same sector score in the StockScorer model.

SymbolCompanyRating
GOOGLAlphabet Inc Class Athis page
METAMeta Platforms Inc.High7.3
0700.HKTencent Holdings Ltdlocked
6098.TRecruit Holdings Co Ltdlocked
SPOTSpotify Technology SAlocked
NBISNebius Group N.V.locked

Frequently asked questions about Alphabet Inc Class A stock

How does Alphabet Inc Class A stock (GOOGL) score in the StockScorer model?
Alphabet Inc Class A stock reaches a StockScorer score of 7.3 out of 10, which is a high match with the rule-based strategies. 5 out of 7 flagship profile rules are met.
What is Alphabet Inc Class A's P/E ratio?
Alphabet Inc Class A's P/E ratio is 26.4. The Communication Services sector median is 21.7.
What sector is Alphabet Inc Class A in?
Alphabet Inc Class A is assigned to the Communication Services sector. Its rank within the sector is 50.9 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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