GOOG

Alphabet

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Communication Services

industry

Internet Content & Information

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/29/26

Business Summary

Alphabet generates cash primarily by monetizing user attention and digital intent at global scale, converting traffic across search, video, and digital properties into advertising revenue with extraordinary efficiency. The 31.80% operating margin reflects the power of a platform model where incremental revenue carries high contribution margins once infrastructure is built. High ROIC of 31.40% demonstrates that capital deployed into data centers, software, and ecosystem expansion yields outsized returns. Its moat is rooted in distribution scale, embedded user behavior, and advertiser dependence, creating a self-reinforcing ecosystem that continually funds innovation while sustaining profitability.

VALUATION

P/E

29.2

Market Cap ($M USD)

$3,836,498

Forward P/E

23.5

PEG

1.6

PRICE TO SALES

9.6

PRICE TO BOOK

9.2

EV / EBITDA

20.8

5-Year Average P/E

DIVIDEND

Yield

0.30%

Annual Payout

$0.84

Payout Ratio

7.60%

Consecutive Years of Dividend Growth

1

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$10.91

Next Year EPS Growth Estimate

$13.43

Next Year Revenue Growth Estimate

15.20%

Return on Equity (ROE)

31.80%

Operating Margin

32.00%

Debt-to-Equity

0.1

Piotroski F-Score

6

Altman Z-Score

15.1

Return on Invested Capital (ROIC)

31.40%%

Current Ratio

2

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 29.2x earnings and 23.5x forward earnings, the market is pricing Alphabet as a durable compounder rather than a speculative growth name, and the 1.6 forward PEG suggests growth is not being given away but is reasonably aligned with expectations. An Altman Z-Score of 15.1 signals extreme balance sheet safety, reinforcing that bankruptcy risk is effectively negligible, while a 2 current ratio and 32.00% Debt/Equity confirm controlled leverage. With a $3,836,498M market cap and 31.80% operating margins, this is a fortress franchise trading at a growth-adjusted multiple that looks rational rather than euphoric. The market is not deeply mispricing it, but the combination of high ROIC and financial strength implies long-duration compounding remains intact.

AI Exposure / Tech Reliance

As a leader in Internet Content & Information within Communication Services, Alphabet sits directly at the center of AI-driven content, search, and digital advertising evolution. The scale implied by its $3,836,498M market cap and 31.80% operating margin provides enormous reinvestment capacity into AI infrastructure. Companies in this industry that control distribution and data pipelines are structurally advantaged in adapting to AI monetization shifts.

The Bull Case

A GARP investor buys this because 31.40% ROIC paired with 15.20% ROE and 31.80% operating margins signals a machine that converts capital into cash at elite rates. The Piotroski F-Score of 6 indicates fundamentally sound operations without distress signals, while the Altman Z-Score of 15.1 reinforces balance sheet resilience. A 23.5 forward P/E for a company generating 31.80% operating margins and carrying only 32.00% Debt/Equity is not expensive in absolute terms, especially with a PEG of 1.6 suggesting growth is reasonably priced. Add a 2 current ratio and institutional ownership listed at $378.72, and you have a widely held, financially stable compounder that fits squarely into a quality-at-a-reasonable-price framework.

The Bear Case

The red flag is valuation relative to growth trajectory: a 1.6 forward PEG is not cheap, and a 29.2 P/E leaves little margin for disappointment. Debt/Equity at 32.00% is manageable but no longer trivial for a mega-cap that must constantly reinvest to defend dominance. The dividend metrics are uninspiring, with a TTM Yield of 0.1 and Dividend Per Share USD of 0.30% against a Payout Ratio of $0.84, offering minimal income support if multiple compression occurs. With Short % of Float not provided and Consensus metrics showing 0.30% and 1.24, visibility into sentiment is limited, which adds uncertainty around positioning risk into the next earnings date of 04/29/26.

Market Sentiment & Smart Money

Short Interest %

0.30%

Analyst Consensus

1.24

Average Analyst Price Target

$378.72

Institutional Ownership %

60.90%

1-Year Beta

1.14

Insider Buying % (6 Mo)

6.60%%

Distance to 52-Week High

90.20%%

Distance to 52-Week Low

212.80%%