Alphabet Inc. (GOOG) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-64.9%

$99.02

vs $282.06 price

Levered DCF

$128.94

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

8.85

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	28.76×	23.42×	24.13×	19.33×	25.43×	29.59×	26.96×	23.43×
P/B	9.16×	7.22×	6.28×	4.53×	7.68×	5.36×	4.6×	4.05×
P/S	9.44×	6.7×	5.79×	4.1×	7.5×	6.53×	5.72×	5.26×
EV / EBITDA	21.2×	17.34×	18.2×	13.7×	18.74×	19.27×	17.93×	16.05×
Gross margin	59.7%	58.2%	56.6%	55.4%	56.9%	53.6%	55.6%	56.5%
Operating margin	32.0%	32.1%	27.4%	26.5%	30.6%	22.6%	21.1%	20.1%
Net margin	32.8%	28.6%	24.0%	21.2%	29.5%	22.1%	21.2%	22.5%
Current ratio	2.01×	1.84×	2.1×	2.38×	2.93×	3.07×	3.37×	3.92×
Debt / equity	0.14×	0.08×	0.1×	0.12×	0.11×	0.12×	0.08×	0.02×
Interest coverage	175.32×	419.37×	273.68×	209.64×	227.5×	305.36×	342.31×	241.44×
Dividend yield	0.3%	0.3%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	7.6%	7.4%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	31.8%	30.8%	26.0%	23.4%	30.2%	18.1%	17.0%	17.3%
Return on invested capital	21.8%	25.8%	22.4%	21.1%	22.2%	13.1%	12.8%	12.2%
Return on assets	22.2%	22.2%	18.3%	16.4%	21.2%	12.6%	12.4%	13.2%
Free cash flow yield	1.9%	3.1%	3.9%	5.2%	3.5%	3.6%	3.3%	3.2%
Earnings yield	3.5%	4.3%	4.1%	5.2%	3.9%	3.4%	3.7%	4.3%
Enterprise value	$3.8T	$2.3T	$1.8T	$1.2T	$1.9T	$1.2T	$923.5B	$707.1B
Net debt / EBITDA	0.16×	0.01×	0.03×	0.09×	0.07×	0×	-0.05×	-0.29×
Cash conversion cycle (days)	30	35	36	45	40	42	39	36