Alphabet or Microsoft: which stock is cheaper in 2026?
As of October 5, 2026, Alphabet (GOOGL) trades at 17.3× earnings (P/E) and Microsoft (MSFT) at 28.8×, according to Kaplio. A caveat on Alphabet: its earnings over the last twelve months are far from what the consensus expects, so its current P/E is not representative.
According to the Kaplio Summary
The same verdict as each company's page: price range by multiples, the four lights, the expected return if consensus is right and what Buffett and Lynch would say today.
| Alphabet (GOOGL) | Microsoft (MSFT) | |
|---|---|---|
| Summary valuation | fairly priced ($281–$470) | cheap ($628–$631) |
| The four lights | Valuation: P/E 17.3× (fairly priced) Business: EBITDA margin 44.9 % (excellent) Balance sheet: Net debt/EBITDA 0.2× (solid) Results: 8 of 8 (on track) | Valuation: P/E 28.8× (cheap) Business: ROIC 21 % (solid) Balance sheet: Net debt/EBITDA 0.5× (solid) Results: 8 of 8 (on track) |
| Expected return (per year) | +9.3 % a year (to 2028) | +17.6 % a year (to 2029) |
| Buffett method | quality 91 · would wait | quality 97 · would wait |
| Lynch method | fast grower · approves | stalwart · would wait |
Metrics side by side
| Metric | Alphabet (GOOGL) | Microsoft (MSFT) |
|---|---|---|
| Overview | ||
| Market Cap | $4.2T | $3.8T |
| Price | $343.50 | $517.53 |
| Valuation | ||
| P/E | 17.3× | 28.8× |
| P/B | 6.5× | 8.7× |
| P/S | 9.3× | 11.6× |
| EV/EBITDA | 12.9× | 19.0× |
| FCF Yield | 1.3 % | 1.7 % |
| Dividend Yield | 0.2 % | 0.7 % |
| Profitability | ||
| ROIC | 15.2 % | 21.0 % |
| ROE | 50.8 % | 33.2 % |
| Gross Margin | 60.9 % | 67.9 % |
| Operating Margin | 33.1 % | 46.8 % |
| Net Margin | 54.8 % | 40.3 % |
| Growth | ||
| Revenue 5Y CAGR | 17.2 % | 14.6 % |
| EPS 5Y CAGR | 29.8 % | 17.3 % |
| FCF 5Y CAGR | 11.3 % | 3.6 % |
| Balance Sheet | ||
| Net Debt / EBITDA | 0.2× | 0.5× |
| Debt / Equity | 0.2× | 0.3× |
Trailing twelve months where available; otherwise the latest fiscal year. Growth: five-year compound annual rate.