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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 $335.38, about 70.7% overvalued vs fair value, +38.9% 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 335.38
0.02%
(Delayed)
• Vol 90d: 37.3%
52-Week Range
Market Cap
$4.34T
Enterprise Value
$4.21T
Overall Score
View breakdown
Overall
Growth
Good
Profitability
Excellent
Health
Fair
Efficiency
Fair
Valuation
Good
Growth
Good
Profitability
Excellent
Health
Fair
Efficiency
Fair
Valuation
Good
Completeness: 100%
Confidence: 62%
Updated: Sep 12
Top Beats

Quick Facts

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

Next Events

Dividend Sep 14
Earnings Oct 28

Fair Value Snapshot

Bear Base Bull
$90
$98
$107
Current: $335.38 -71% vs base

Engine Room Money Flow™

Mega Cap

Corporate Free Cash Flow - Where revenue goes and how value is created

Flow Steps
Revenue
$402.8B
15.1%%
Gross Profit
$240.3B
18%%
Operating Income
$129.0B
14.8%%
Net Income
$132.2B
32%%
Operating Cash Flow
$164.7B
31.5%%
Free Cash Flow
$73.3B
0.7%%
Financing Activities
$-23.6B
Net Change in Cash
$7.0B
23346.7%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Corporate Free Cash Flow

Quality & Reliability Indicators

Cash Conversion Ratio FY2025
55.4%
Fair

Operating Cash Flow / Net Income

FCF / Net Income - measures how well earnings convert to cash

Operating Cash Flow Margin FY2025
40.9%
Excellent

Operating Cash Flow / Revenue

OCF / Revenue - cash profitability from operations

Reinvestment Rate
55.5%
Fair

CapEx / OCF - how much cash is reinvested

Free Cash Flow Margin FY2025
18.2%
Good

Free Cash Flow / Revenue

FCF / Revenue - ultimate cash margin available to owners

Free Cash Flow Yield
1.69%
Poor

FCF / Market Cap - yield for equity holders

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 some concerns
Moderate efficiency issues detected. Review active leaks below for improvement areas.
4
Active Leaks
2/4
Improving
0
High Impact
0
Critical
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 0.26), 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
81

Ability to sustain premium gross margins and defend profitability against competition

Key signals
Gross Margin Quality 73/100
Operating Margin
32.0% vs -0.5% median P99
Gross Profit Margin
59.7% vs 59.9% median P48
Margin Durability 92/100
Operating Margin
— vs 8.0% 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 0.92), pointing to resilient pricing power.

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

Key signals
Revenue Consistency 70/100
Rev Growth YoY
— vs 17.1% median
Contracted Demand 76/100
Revenue CAGR 3Y
12.5% vs 4.0% median P71
Def Rev Growth
30.6% vs -2.9% median P81
STRENGTHS
  • Consistent Subscription Growth Revenue consistency is strong (score 0.70), pointing to a sticky customer base.
  • Deferred Revenue Momentum Contracted demand signals are healthy (score 0.76), 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 P39
Rev Growth YoY
15.1% vs 2.1% median P72
Innovation Payoff 76/100
Revenue CAGR 3Y
12.5% vs 4.0% median P71
Rule of 40
33.3% vs 10.9% 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 9.0% median P93
FCF Trend 26/100
FCF Margin
— vs 2.1% 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 0.26), 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 -3.4% median P93
ROIC
23.2% vs 0.4% median P94
Return Durability 89/100
ROIC
— vs 7.2% 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 0.89), indicating durable capital efficiency.

Capacity to keep investing through downturns without balance sheet stress

Key signals
Debt Capacity 91/100
Interest Coverage (EBIT)
216.80x vs -1.46x median P97
Cash Flow to Debt Ratio
1.96x vs 0.15x median P84
Liquidity Position 50/100
Current Ratio
2.01x vs 1.91x median P54
Net Debt/EBITDA
0.16x vs -0.04x median P46
STRENGTHS
  • Debt Covered by Cash Generation Debt capacity is solid (score 0.91), 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 (32.7%), Profitability (35.8%), and Safety (31.6%). Growth 33% Safety 32% Profitability 36%

Click axes to expand details. Marker shows current allocation.

Loading 3-year trend analysis...

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% 84p Buyback % -1.0% 74p
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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