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Alphabet (GOOG) Stock Analysis

This is a peer-relative look at Alphabet (GOOG): its performance, risk, profitability, 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 Capitalization4,256.01 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateAugust 19, 2004
Security TypeCommon Stock

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.

Performance at a Glance

Alphabet (GOOG) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGIndustry group median
Total Return (1Y)108.54%-4.70%

Risk

Drawdown

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.

Risk at a Glance

Alphabet (GOOG) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGIndustry group median
Volatility (1Y, Annualized)29.18%46.18%
Beta (5Y)1.240.97

Profitability

ROE (TTM)

Alphabet (GOOG) posts ROE of 38.89%, 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

38.89%

Group distribution
GOOG
38.89%
Max
38.89%
Q3
15.58%
Median
6.43%
Q1
-3.97%
Min
-29.59%
Largest peers
NFLX
48.50%
GOOG
38.89%
SPOT
37.99%
META
32.93%
NTES
22.13%
CMCSA
20.92%
DIS
11.01%
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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 37.92% 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

37.92%

Group distribution
GOOG
37.92%
Max
30.77%
Q3
10.81%
Median
3.55%
Q1
-3.19%
Min
-24.17%
Largest peers
GOOG
37.92%
META
32.84%
NTES
29.84%
NFLX
28.52%
SPOT
15.45%
CMCSA
15.00%
DIS
11.54%
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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 36.12% 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

36.12%

Group distribution
Max
41.37%
GOOG
36.12%
Q3
17.06%
Median
7.79%
Q1
-3.39%
Min
-27.39%
Largest peers
NTES
41.37%
META
40.62%
GOOG
36.12%
NFLX
32.30%
SPOT
15.77%
DIS
15.51%
CMCSA
13.15%
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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 at a Glance

Alphabet (GOOG) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGIndustry group median
ROE (TTM)38.89%6.43%
ROA (TTM)14.64%3.04%
Net Margin (TTM)37.92%3.55%
Operating Margin (TTM)36.12%7.79%
Gross Margin (TTM)60.37%52.29%

Financial Strength

Current Ratio (MRQ)

Alphabet (GOOG) has current ratio of 1.92, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

GOOG

Media & Entertainment industry group

1.92

Group distribution
Max
4.37
Q3
2.32
GOOG
1.92
Median
1.39
Q1
0.89
Min
0.31
Largest peers
NTES
3.29
META
2.35
SPOT
2.06
GOOG
1.92
NFLX
1.41
CMCSA
0.87
DIS
0.68
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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 0.20, 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

0.20

Group distribution
Max
2.46
Q3
1.25
Median
0.50
GOOG
0.20
Q1
0.15
Min
0.00
Largest peers
CMCSA
1.07
NFLX
0.54
DIS
0.41
META
0.36
GOOG
0.20
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 at a Glance

Alphabet (GOOG) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGIndustry group median
Current Ratio (MRQ)1.921.39
Debt / Equity (MRQ)0.200.50
Net Debt / EBITDA-0.191.23

Dividends

Dividend Yield (TTM)

Alphabet (GOOG) has dividend yield of 0.23%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

GOOG

Media & Entertainment industry group

0.23%

Group distribution
Max
2.17%
Q3
1.02%
GOOG
0.23%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
CMCSA
5.89%
NTES
3.44%
DIS
1.44%
META
0.36%
GOOG
0.23%
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 6.41%, 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

6.41%

Group distribution
Max
45.76%
Q3
22.57%
GOOG
6.41%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
NTES
39.66%
CMCSA
25.88%
DIS
20.00%
META
7.64%
GOOG
6.41%
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.

Dividends at a Glance

Alphabet (GOOG) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGIndustry group median
Dividend Yield (TTM)0.23%0.00%
Dividend Payout Ratio (TTM)6.41%0.00%

Valuation

P/E Ratio (TTM)

Alphabet (GOOG) trades at P/E ratio of 26.60, 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

26.60

Group distribution
Max
65.67
Q3
35.82
GOOG
26.60
Median
21.74
Q1
11.07
Min
1.56
Largest peers
SPOT
31.06
GOOG
26.60
NFLX
23.51
META
20.49
DIS
16.39
NTES
15.55
CMCSA
4.38
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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 10.07 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

10.07

Group distribution
GOOG
10.07
Max
8.27
Q3
3.98
Median
1.38
Q1
0.59
Min
0.00
Largest peers
GOOG
10.07
META
6.66
NFLX
6.54
SPOT
5.39
DIS
1.83
NTES
0.68
CMCSA
0.64
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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 8.83 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

8.83

Group distribution
Max
12.69
GOOG
8.83
Q3
5.79
Median
1.82
Q1
0.78
Min
-2.93
Largest peers
NTES
15.98
NFLX
9.86
SPOT
9.62
GOOG
8.83
META
5.87
DIS
1.64
CMCSA
0.90
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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 at a Glance

Alphabet (GOOG) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGIndustry group median
P/E Ratio (TTM)26.6021.74
P/S Ratio (TTM)10.071.38
P/B Ratio (MRQ)8.831.82
Free Cash Flow Yield (TTM)0.66%8.08%