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Alphabet (GOOGL) Stock Analysis

This is a peer-relative look at Alphabet (GOOGL): 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 (GOOGL)
Profile ItemGOOGL
NameAlphabet Inc. Class A Common Stock
Country/RegionUnited States
GICS SectorCommunication Services
GICS Industry GroupMedia & Entertainment
GICS IndustryInteractive Media & Services
GICS Sub-IndustryInteractive Media & Services
Market Capitalization3,916.15 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateAugust 19, 2004
Security TypeCommon Stock

Price Performance

Cumulative Growth

GOOGL
GSPC
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Alphabet (GOOGL) 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 (GOOGL) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Alphabet (GOOGL) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGLIndustry group median
Total Return (1Y)26.85%2.21%
Total Return (3Y, Annualized)33.29%10.94%
Total Return (5Y, Annualized)18.63%-7.29%

Risk Profile

Drawdown History

GOOGL
GSPC
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Alphabet (GOOGL) 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 (GOOGL) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Alphabet (GOOGL) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGLIndustry group median
Volatility (1Y, Annualized)31.67%43.95%
Beta (5Y)1.210.97
Max Drawdown (5Y)-44.32%-69.54%

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. GOOGL 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 (GOOGL) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGLIndustry group median
Sharpe Ratio (1Y)0.71-0.03
Sortino Ratio (1Y)1.12-0.05

Profitability

ROE (TTM)

Alphabet (GOOGL) posts ROE of 48.68%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

GOOGL

Media & Entertainment industry group

48.68%

Group distribution
GOOGL
48.68%
Max
45.82%
Q3
17.46%
Median
7.50%
Q1
-3.05%
Min
-26.31%
Largest peers
NFLX
53.46%
GOOGL
48.68%
SPOT
35.81%
META
32.26%
NTES
20.37%
CMCSA
11.43%
DIS
8.01%
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Where Alphabet (GOOGL) 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 (GOOGL) 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.

GOOGL

Media & Entertainment industry group

54.77%

Group distribution
GOOGL
54.77%
Max
32.91%
Q3
11.58%
Median
5.49%
Q1
-3.17%
Min
-25.14%
Largest peers
GOOGL
54.77%
META
31.15%
NFLX
29.69%
NTES
27.88%
SPOT
15.73%
CMCSA
9.20%
DIS
8.70%
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Where Alphabet (GOOGL) 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 (GOOGL) 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.

GOOGL

Media & Entertainment industry group

34.03%

Group distribution
Max
40.16%
GOOGL
34.03%
Q3
18.63%
Median
10.04%
Q1
0.29%
Min
-19.55%
Largest peers
NTES
40.16%
META
35.41%
NFLX
34.63%
GOOGL
34.03%
DIS
19.30%
CMCSA
18.16%
SPOT
13.52%
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Where Alphabet (GOOGL) 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 (GOOGL) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGLIndustry group median
ROE (TTM)48.68%7.50%
ROA (TTM)12.96%3.10%
Net Margin (TTM)54.77%5.49%
Operating Margin (TTM)34.03%10.04%
Gross Margin (TTM)60.90%52.28%

Growth

Revenue Growth

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

EPS Growth

Alphabet (GOOGL) grew earnings per share 34.45%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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

Growth Metrics

Alphabet (GOOGL) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGLIndustry group median
Revenue Growth (YoY)15.09%5.07%
Revenue Growth (3Y CAGR)12.51%5.29%
EPS Growth (YoY)34.45%5.94%
EPS Growth (3Y CAGR)33.34%24.28%

Financial Strength

Current Ratio (MRQ)

Alphabet (GOOGL) 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.

GOOGL

Media & Entertainment industry group

2.72

Group distribution
Max
4.50
GOOGL
2.72
Q3
2.42
Median
1.53
Q1
0.90
Min
0.25
Largest peers
NTES
3.45
GOOGL
2.72
SPOT
2.13
META
1.90
NFLX
1.08
CMCSA
0.82
DIS
0.71
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Where Alphabet (GOOGL) 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 (GOOGL) 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.

GOOGL

Media & Entertainment industry group

0.19

Group distribution
Max
3.84
Q3
1.71
Median
0.60
GOOGL
0.19
Q1
0.17
Min
0.00
Largest peers
CMCSA
0.94
NFLX
0.60
META
0.42
DIS
0.39
GOOGL
0.19
NTES
0.07
SPOT
0.05
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Where Alphabet (GOOGL) 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 (GOOGL) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGLIndustry group median
Current Ratio (MRQ)2.721.53
Debt / Equity (MRQ)0.190.60
Net Debt / EBITDA-0.701.43

Dividends

Dividend Yield (TTM)

Alphabet (GOOGL) has dividend yield of 0.26%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

GOOGL

Media & Entertainment industry group

0.26%

Group distribution
Max
1.70%
Q3
0.69%
GOOGL
0.26%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
CMCSA
5.78%
NTES
3.38%
DIS
1.33%
META
0.32%
GOOGL
0.26%
NFLX
0.00%
SPOT
0.00%
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Where Alphabet (GOOGL) 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 (GOOGL) 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.

GOOGL

Media & Entertainment industry group

4.26%

Group distribution
Max
60.80%
Q3
28.16%
GOOGL
4.26%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
NTES
41.85%
CMCSA
41.77%
DIS
30.93%
META
7.16%
GOOGL
4.26%
NFLX
0.00%
SPOT
0.00%
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Where Alphabet (GOOGL) 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 (GOOGL) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGLIndustry group median
Dividend Yield (TTM)0.26%0.00%
Dividend Payout Ratio (TTM)4.26%0.00%

Valuation

P/E Ratio (TTM)

Alphabet (GOOGL) trades at P/E ratio of 16.07, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

GOOGL

Media & Entertainment industry group

16.07

Group distribution
Max
73.62
Q3
36.70
Median
19.19
GOOGL
16.07
Q1
10.72
Min
1.50
Largest peers
SPOT
35.60
DIS
23.20
META
21.92
NFLX
19.03
NTES
16.47
GOOGL
16.07
CMCSA
7.18
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Where Alphabet (GOOGL) 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 (GOOGL) trades at 8.78 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

GOOGL

Media & Entertainment industry group

8.78

Group distribution
GOOGL
8.78
Max
8.78
Q3
3.91
Median
1.61
Q1
0.65
Min
0.00
Largest peers
GOOGL
8.78
META
6.78
SPOT
6.39
NFLX
5.51
DIS
1.97
CMCSA
0.66
NTES
0.65
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Where Alphabet (GOOGL) 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 (GOOGL) trades at 6.29 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.

GOOGL

Media & Entertainment industry group

6.29

Group distribution
Max
12.23
GOOGL
6.29
Q3
5.66
Median
1.94
Q1
0.76
Min
-1.97
Largest peers
NTES
15.18
SPOT
12.23
NFLX
9.23
GOOGL
6.29
META
6.03
DIS
1.77
CMCSA
0.87
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Where Alphabet (GOOGL) 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 (GOOGL) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: GOOGLIndustry group median
P/E Ratio (TTM)16.0719.19
P/S Ratio (TTM)8.781.61
P/B Ratio (MRQ)6.291.94
Free Cash Flow Yield (TTM)0.58%6.15%