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
| Profile Item | GOOG |
|---|---|
| Name | Alphabet Inc. |
| Country/Region | United States |
| GICS Sector | Communication Services |
| GICS Industry Group | Media & Entertainment |
| GICS Industry | Interactive Media & Services |
| GICS Sub-Industry | Interactive Media & Services |
| Market Capitalization | 4,361.81 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | August 19, 2004 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: GOOG | Industry 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
Return Distribution
Risk Metrics
| Metric | Current stock: GOOG | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 31.73% | 46.75% |
| Beta (5Y) | 1.23 | 0.98 |
| Max Drawdown (5Y) | -44.60% | -75.38% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: GOOG | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 2.57 | 0.13 |
| Sortino Ratio (1Y) | 4.55 | 0.20 |
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%
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%
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%
Profitability Metrics
| Metric | Current stock: GOOG | Industry 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.
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.
Growth Metrics
| Metric | Current stock: GOOG | Industry 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
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
Financial Strength Metrics
| Metric | Current stock: GOOG | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 2.72 | 1.56 |
| Debt / Equity (MRQ) | 0.19 | 0.52 |
| Net Debt / EBITDA | -0.70 | 1.43 |
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%
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%
Dividend Metrics
| Metric | Current stock: GOOG | Industry 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
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
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
Valuation Metrics
| Metric | Current stock: GOOG | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 17.89 | 20.53 |
| P/S Ratio (TTM) | 9.78 | 1.58 |
| P/B Ratio (MRQ) | 7.01 | 2.08 |
| Free Cash Flow Yield (TTM) | 0.52% | 6.51% |