Alphabet Inc. (Class A)
Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including a…
Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in Google Play and YouTube; and devices, as well as the provision of YouTube consumer subscription services, such as YouTube TV, YouTube Music and Premium, NFL Sunday Ticket, and Google One. The Google Cloud segment offers consumption-based fees and subscriptions for AI solutions, including AI infrastructure, Vertex AI platform, and Gemini enterprise. It also provides cybersecurity, and data and analytics services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet; and other enterprise services. The Other Bets segment sells transportation and internet services. Alphabet Inc. was incorporated in 1998 and is headquartered in Mountain View, California.Priced within the modelled range
5-year outlook: Not shown because confidence is low: Normalised free-cash-flow DCF disagrees strongly.
Other models: USD 31.87–319.18 (median 261.46). The recommended value is in line with them.
Why: Free cash flow is far below earnings (heavy investment), and even a three-year average understates value, so an EV/EBITDA multiple, which is not distorted by capex timing, fits best.
Details and the full model are below.
Market price within modeled range
EV/EBITDA (12x) using TTM through 30 Sep 2026 EBITDA at a 12x enterprise multiple, after subtracting debt and adding cash. Used because free cash flow is depressed by heavy investment, so cash-flow models understate value. The range uses 10x to 14x; it is illustrative, not a statistical confidence interval or investment advice.
Assumptions: growth 18.38%, discount rate 10.40%, terminal growth 2.90% (sector defaults). See a worked example.
Blended growth assumption: 18.4% (sector default 7.0%, own revenue history 12.5%, analyst revenue consensus 27.0%).
Analyst consensus expects revenue growth of 27.0% a year; the growth assumption used is 18.4%.
Adjust assumptions
Why this model: Free cash flow is far below earnings (heavy investment), and even a three-year average understates value, so an EV/EBITDA multiple, which is not distorted by capex timing, fits best.
Compare models- Recommended: EV/EBITDA (12x) — USD 319.18 (+13.0%)
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EPS-based Gordon proxy
— USD 261.46 (-7.5%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 50.90 (-82.0%)
Not used: Free cash flow is only 8% of net income, so a cash-flow model is probably depressed by investment timing.
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FCFF (steady state)
— USD 31.87 (-88.7%)
Not used: Free cash flow is only 8% of net income, so a cash-flow model is probably depressed by investment timing.
- EV/EBITDA (12x) — USD 319.18 (+13.0%)
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Fade DCF (10-year growth fade)
— USD 50.43 (-82.2%)
Not used: Free cash flow is only 8% of net income, so a cash-flow model is probably depressed by investment timing.
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EV/Sales (Rule of 40)
— USD 581.31 (+105.7%)
Not used: Used only when cash-flow models land far below the price; here they do not.
| Bear USD 267.65 | -5.6% |
| Base USD 319.18 | 11.5% |
| Bull USD 370.72 | 23.8% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
3 months price change: -20.91% · USD 282.57 · Market data through 05 Nov 2026 ; dashed line is today’s model base value (USD 319.18). The fair value is today’s estimate, not what the model said in the past.
Saved price history is current through 05 Nov 2026; last refreshed 06 Nov 2026 07:25 (6 hours, 36 minutes ago).
10 Aug 2026Range USD 278.99 – 357.2905 Nov 2026
More detail: quality, peers, price history, dividends and financials
Quality score: 100 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +13.6% a year | 20 / 20 |
| Balance sheet | net cash | 20 / 20 |
| Margins | EBITDA margin 68% | 20 / 20 |
Peers in Communication Services
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| GOOGL (this company) | USD 282.57 | 11.5% | 14.8 | 5.2 | 0.3% | 100 |
| DTE.DE Deutsche Telekom AG | EUR 25.87 | 49.7% | 14.4 | 2.1 | 5.5% | 82 |
| PUB.PA Publicis Groupe S.A. | EUR 102.60 | 42.0% | 15.7 | 2.5 | 3.5% | 90 |
| VOD.L Vodafone Group Public Limited Company | GBP 1.17 | 41.9% | – | 0.7 | 3.2% | 66 |
| CMCSA Comcast | USD 24.95 | 39.1% | 7.9 | 1.0 | 5.4% | 82 |
| TEF.MC Telefonica, S.A. | EUR 3.36 | 33.8% | – | – | 8.9% | 59 |
| INF.L Informa plc | GBP 8.40 | 23.0% | – | 1.9 | 2.4% | 66 |
| SONY Sony Group Corporation | USD 27.54 | 19.5% | – | – | – | 82 |
| EMBRAC-B.ST Embracer Group AB | SEK 95.44 | 18.5% | – | 1.0 | – | 56 |
| Peer median | 14.4 | 1.5 | ||||
Dividends
Paid in the last 12 months: USD 0.86 per share · yield 0.30% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.650 |
| 2025 | 0.830 |
| 2024 | 0.600 |
Trailing 12-month financials
TTM through 30 Sep 2026 · quarterly EODHD data · data downloaded 05 Nov 2026 18:28
| Revenue | USD 471,098,000,000 |
|---|---|
| EBITDA | USD 318,708,000,000 |
| EBIT | USD 290,713,000,000 |
| Net income | USD 235,694,000,000 |
| Free cash flow | USD 19,747,000,000 |
| Capital expenditures | USD 159,804,000,000 |
| Debt | USD 141,917,000,000 |
| Cash | USD 265,098,000,000 |
| Working capital | USD 240,164,000,000 |
| Shares outstanding | 12,368,000,000 |
| Reported dividends per share | USD 0.8654 |