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Company Analysis

Alphabet Inc. GOOG

A comprehensive view of key metrics, scores, and financial health for Alphabet Inc.

Overview of Alphabet Inc.

GOOG NMS
Communication Services Internet Content & Information Framework: Software & SaaS Mega Cap
Alphabet Inc. (GOOG), is a Mega Cap company, in the Internet Content & Information industry, last closed at $278.04, about 65.3% overvalued vs fair value, -2.6% 1Y return, placing in the top 25% of its sector.
Metrics P/E 29.0× Rev Growth 15.1% ROE 35.7% Gross Margin 59.7% Div Yield 0.27%
USD 278.04
-0.06%
(Delayed)
• Vol 90d: 38.0%
52-Week Range
Market Cap
$3.45T
Enterprise Value
$3.51T
Overall Score
View breakdown
Overall
Growth
Good
Profitability
Good
Health
Fair
Efficiency
Fair
Valuation
Good
Growth
Good
Profitability
Good
Health
Fair
Efficiency
Fair
Valuation
Good
Completeness: 100%
Confidence: 97%
Updated: Oct 31
Top Beats

Quick Facts

Website https://abc.xyz
HQ Mountain View, CA
Employees 190,820
Fiscal year Dec 31

Next Events

No upcoming events available.

Fair Value Snapshot

Bear Base Bull
$88
$96
$105
Current: $278.04 -65% vs base

Engine Room Money Flow™

Mega Cap

Software & SaaS - Where revenue goes and how value is created

Flow Steps
Total Revenue
$402.8B
15.1%%
Gross Profit
$240.3B
18%%
Operating Income (GAAP)
$129.0B
14.8%%
Operating Cash Flow
$164.7B
31.5%%
Free Cash Flow
$73.3B
0.7%%
Capital Allocation
-$55.8B
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Software & SaaS

Quality & Reliability Indicators

Gross Margin
59.7%

Gross Profit / Revenue — context only; ad platforms typically 60–80%, marketplaces and streaming lower by design

FCF Margin FY2025
18.2%
Good

Free Cash Flow / Revenue

Free Cash Flow / Revenue — primary investor metric for software companies

Rule of 40
33.3
Fair

Revenue Growth (%) + FCF Margin (%) — SaaS health score: ≥40 healthy, ≥60 elite

SBC % of Revenue
6.2%
Good

Stock-Based Compensation / Revenue — real dilution cost excluded from GAAP FCF; 5–15% typical for growth SaaS

R&D Intensity
15.2%
Excellent

R&D Expense / Revenue — growth investment intensity (10–25% typical for SaaS)

Operating Margin (GAAP)
32.0%
Excellent

Operating Income / Revenue — GAAP profitability; negative is common for high-growth SaaS

FCF Yield
2.1%
Fair

Free Cash Flow / Market Cap — investor return potential

Owner's Pocket - Capital Allocation

Total Returned to Shareholders

Combined dividends, buybacks, and debt reduction

$55.8B
76.1% of FCF
Dividends
$10.0B
% of FCF 13.7%
Buybacks
$45.7B
% of FCF 62.4%

Where It Leaks

Cash Flow Health critical
Significant cash flow inefficiencies identified. Multiple high-impact leaks require attention.
4
Active Leaks
2/4
Improving
0
High Impact
1
Critical
Key Insights

Key concerns identified: CapEx Hunger

Moat Analysis Software & SaaS Specialized

Competitive Advantage Assessment

Evaluating Alphabet Inc.'s durable competitive advantages across 6 defense dimensions

Overall Moat Strength
75
/100
Moderate
Scores based on quantitative metrics and qualitative factors
Full moat analysis

Key strengths

  • Premium Software Margins Gross margin quality is strong versus peers (score 0.73), consistent with premium software economics.
  • Asset-Light Returns Return profile is strong (score 0.94), supporting a capital-efficient model.

Key risks

  • FCF Trend Is Softening FCF trend is weak (score 0.27), suggesting cash scalability is deteriorating.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

Select any axis label to open that defense below.

Pricing Power

Strong
82

Ability to sustain premium gross margins and defend profitability against competition

Key signals
Gross Margin Quality 73/100
Operating Margin
32.0% vs -1.3% median P97
Gross Profit Margin
59.7% vs 59.9% median P49
Margin Durability 96/100
Operating Margin
— vs 10.1% median
STRENGTHS
  • Premium Software Margins Gross margin quality is strong versus peers (score 0.73), consistent with premium software economics.
  • Margins Hold Through Cycles Margin durability is strong (score 0.96), pointing to resilient pricing power.

Evidence that customers renew, expand, and keep revenue streams predictable

Key signals
Revenue Consistency 71/100
Rev Growth YoY
— vs 18.1% median
Contracted Demand 75/100
Revenue CAGR 3Y
12.5% vs 4.0% median P71
Def Rev Growth
30.6% vs 0.6% median P79
STRENGTHS
  • Consistent Subscription Growth Revenue consistency is strong (score 0.71), pointing to a sticky customer base.
  • Deferred Revenue Momentum Contracted demand signals are healthy (score 0.75), consistent with recurring revenue strength.

Capacity to reinvest in product development without losing the growth-profit balance

Key signals
R&D Commitment 55/100
R&D Intensity
15.2% vs 9.3% median P40
Rev Growth YoY
15.1% vs 2.5% median P71
Innovation Payoff 76/100
Revenue CAGR 3Y
12.5% vs 4.0% median P71
Rule of 40
33.3% vs 11.2% median P81
STRENGTHS
  • Innovation Converts to Outcomes Innovation payoff is strong (score 0.76), supported by Rule of 40 and revenue compounding.

Ability to translate revenue growth into durable operating and free cash flow

Key signals
Cash Conversion 87/100
FCF Margin
18.2% vs 4.0% median P81
Operating Cash Flow Margin
40.9% vs 9.3% median P93
FCF Trend 27/100
FCF Margin
— vs 1.8% median
STRENGTHS
  • Revenue Converts Cleanly to Cash Cash conversion is strong (score 0.87), showing scalable economics.
RISKS
  • FCF Trend Is Softening FCF trend is weak (score 0.27), suggesting cash scalability is deteriorating.

Returns generated by an asset-light platform without relying on leverage

Key signals
Return Profile 94/100
ROE
35.7% vs -2.0% median P93
ROIC
23.2% vs -0.6% median P94
Return Durability 94/100
ROIC
— vs 11.1% median
STRENGTHS
  • Asset-Light Returns Return profile is strong (score 0.94), supporting a capital-efficient model.
  • Returns Hold Over Time Return durability is healthy (score 0.94), indicating durable capital efficiency.

Capacity to keep investing through downturns without balance sheet stress

Key signals
Debt Capacity 85/100
Interest Coverage (EBIT)
— vs -1.46x median
Cash Flow to Debt Ratio
1.96x vs 0.18x median P85
Liquidity Position 48/100
Current Ratio
2.01x vs 1.93x median P55
Net Debt/EBITDA
0.09x vs -0.34x median P41
STRENGTHS
  • Debt Covered by Cash Generation Debt capacity is solid (score 0.85), supporting resilience through cycles.

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

Software SaaS vs Industry Peers 100% Coverage
Trade-Off Triangle Visualization A ternary plot showing GOOG's balance between Growth (32.8%), Profitability (35.8%), and Safety (31.5%). Growth 33% Safety 31% Profitability 36%

Click axes to expand details. Marker shows current allocation.

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Growth

67th percentile vs peers
68
Key Signals
Rev Growth YoY 15.1% 62p Def Rev Growth 30.6% 81p Revenue CAGR 3Y 12.5% 58p TSR 65.2% 85p Buyback % -1.0% 73p
Strengths
  • Def Rev Growth in top 20% of peers (30.6%, 81th percentile)
  • Cash Flow to Debt Ratio in top 20% of peers (1.96, 82th percentile)
  • Interest Coverage Ratio in top 20% of peers (216.80, 95th percentile)
  • Superior capital returns - 2 return metrics above peer median
  • Growth above peer median with strong metric coverage (100%)
Risks

No significant risks identified for this axis.

Two Futures

Scenario-based fair value ranges for Alphabet Inc..

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This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

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  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
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