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Alphabet (GOOG) Stock Analysis

This is a peer-relative look at Alphabet (GOOG): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Media & Entertainment peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Alphabet (GOOG)
Profile ItemGOOG
NameAlphabet Inc.
Country/RegionUnited States
GICS SectorCommunication Services
GICS Industry GroupMedia & Entertainment
GICS IndustryInteractive Media & Services
GICS Sub-IndustryInteractive Media & Services
Market Capitalization4,361.81 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateAugust 19, 2004
Security TypeCommon Stock

Price Performance

Cumulative Growth

GOOG
GSPC
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Alphabet (GOOG) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Alphabet (GOOG) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Alphabet (GOOG) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Alphabet (GOOG) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGIndustry group median
Total Return (1Y)85.46%8.95%
Total Return (3Y, Annualized)39.30%5.93%
Total Return (5Y, Annualized)21.62%-7.76%

Risk Profile

Drawdown History

GOOG
GSPC
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Alphabet (GOOG) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Alphabet (GOOG) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Alphabet (GOOG) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGIndustry group median
Volatility (1Y, Annualized)31.73%46.75%
Beta (5Y)1.230.98
Max Drawdown (5Y)-44.60%-75.38%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. GOOG is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Alphabet (GOOG) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGIndustry group median
Sharpe Ratio (1Y)2.570.13
Sortino Ratio (1Y)4.550.20

Profitability

ROE (TTM)

Alphabet (GOOG) posts ROE of 48.68%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

GOOG

Media & Entertainment industry group

48.68%

Group distribution
GOOG
48.68%
Max
48.68%
Q3
16.74%
Median
6.46%
Q1
-5.13%
Min
-37.13%
Largest peers
NFLX
49.54%
GOOG
48.68%
SPOT
44.48%
META
29.85%
NTES
22.13%
CMCSA
11.49%
DIS
8.01%
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Where Alphabet (GOOG) stands on ROE within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Alphabet (GOOG) keeps 54.77% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.

GOOG

Media & Entertainment industry group

54.77%

Group distribution
GOOG
54.77%
Max
30.77%
Q3
9.84%
Median
3.58%
Q1
-4.22%
Min
-24.17%
Largest peers
GOOG
54.77%
NTES
29.84%
META
29.84%
NFLX
28.22%
SPOT
18.43%
CMCSA
8.97%
DIS
8.70%
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Where Alphabet (GOOG) stands on net margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Alphabet (GOOG) turns 34.03% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

GOOG

Media & Entertainment industry group

34.03%

Group distribution
Max
41.37%
GOOG
34.03%
Q3
17.93%
Median
9.02%
Q1
-1.89%
Min
-27.39%
Largest peers
NTES
41.37%
META
34.83%
GOOG
34.03%
NFLX
33.38%
DIS
19.30%
CMCSA
17.23%
SPOT
13.71%
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Where Alphabet (GOOG) stands on operating margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Alphabet (GOOG) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGIndustry group median
ROE (TTM)48.68%6.46%
ROA (TTM)12.96%2.60%
Net Margin (TTM)54.77%3.58%
Operating Margin (TTM)34.03%9.02%
Gross Margin (TTM)60.90%50.70%

Growth

Revenue Growth

Alphabet (GOOG) grew revenue 15.09%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

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Alphabet (GOOG): Revenue Growth across different time periods, set against Media & Entertainment industry-group medians.

EPS Growth

Alphabet (GOOG) grew earnings per share 34.45%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

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Alphabet (GOOG): EPS Growth across different time periods, set against Media & Entertainment industry-group medians.

Growth Metrics

Alphabet (GOOG) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGIndustry group median
Revenue Growth (YoY)15.09%3.97%
Revenue Growth (3Y CAGR)12.51%4.72%
EPS Growth (YoY)34.45%-13.38%
EPS Growth (3Y CAGR)33.34%24.28%

Financial Strength

Current Ratio (MRQ)

Alphabet (GOOG) has current ratio of 2.72, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.

GOOG

Media & Entertainment industry group

2.72

Group distribution
Max
4.86
GOOG
2.72
Q3
2.72
Median
1.56
Q1
0.87
Min
0.09
Largest peers
NTES
3.29
GOOG
2.72
META
2.23
SPOT
2.11
NFLX
1.14
CMCSA
0.80
DIS
0.71
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Where Alphabet (GOOG) stands on current ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Alphabet (GOOG) has debt-to-equity ratio of 0.19, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

GOOG

Media & Entertainment industry group

0.19

Group distribution
Max
2.58
Q3
1.26
Median
0.52
GOOG
0.19
Q1
0.17
Min
0.00
Largest peers
CMCSA
1.00
NFLX
0.55
META
0.43
DIS
0.39
GOOG
0.19
NTES
0.06
SPOT
0.06
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Where Alphabet (GOOG) stands on debt-to-equity ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Alphabet (GOOG) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGIndustry group median
Current Ratio (MRQ)2.721.56
Debt / Equity (MRQ)0.190.52
Net Debt / EBITDA-0.701.43

Dividends

Dividend Yield (TTM)

Alphabet (GOOG) has dividend yield of 0.25%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

GOOG

Media & Entertainment industry group

0.25%

Group distribution
GOOG
0.25%
Max
0.24%
Q3
0.12%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
CMCSA
5.24%
NTES
3.20%
DIS
1.43%
META
0.36%
GOOG
0.25%
NFLX
0.00%
SPOT
0.00%
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Where Alphabet (GOOG) stands on dividend yield within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Alphabet (GOOG) has payout ratio of 4.26%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

GOOG

Media & Entertainment industry group

4.26%

Group distribution
Max
34.19%
Q3
14.58%
GOOG
4.26%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
CMCSA
42.31%
NTES
39.66%
DIS
30.93%
META
7.91%
GOOG
4.26%
NFLX
0.00%
SPOT
0.00%
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Where Alphabet (GOOG) stands on payout ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Alphabet (GOOG) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGIndustry group median
Dividend Yield (TTM)0.25%0.00%
Dividend Payout Ratio (TTM)4.26%0.00%

Valuation

P/E Ratio (TTM)

Alphabet (GOOG) trades at P/E ratio of 17.89, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

GOOG

Media & Entertainment industry group

17.89

Group distribution
Max
74.32
Q3
36.91
Median
20.53
GOOG
17.89
Q1
11.74
Min
1.83
Largest peers
SPOT
25.91
NFLX
23.17
META
22.23
DIS
21.59
GOOG
17.89
NTES
16.63
CMCSA
8.08
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Where Alphabet (GOOG) stands on P/E ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Alphabet (GOOG) trades at 9.78 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.

GOOG

Media & Entertainment industry group

9.78

Group distribution
GOOG
9.78
Max
6.92
Q3
3.80
Median
1.58
Q1
0.67
Min
0.00
Largest peers
GOOG
9.78
META
6.61
NFLX
6.38
SPOT
5.54
DIS
1.83
NTES
0.74
CMCSA
0.72
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Where Alphabet (GOOG) stands on P/S ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Alphabet (GOOG) trades at 7.01 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

GOOG

Media & Entertainment industry group

7.01

Group distribution
Max
13.02
GOOG
7.01
Q3
5.78
Median
2.08
Q1
0.83
Min
-5.00
Largest peers
NTES
17.33
SPOT
10.86
NFLX
10.24
GOOG
7.01
META
6.17
DIS
1.68
CMCSA
1.00
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Where Alphabet (GOOG) stands on P/B ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Alphabet (GOOG) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGIndustry group median
P/E Ratio (TTM)17.8920.53
P/S Ratio (TTM)9.781.58
P/B Ratio (MRQ)7.012.08
Free Cash Flow Yield (TTM)0.52%6.51%