Alphabet Inc. (GOOG) is a publicly traded company in the Communication Services — Internet Content & Information industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Alphabet Inc. operates globally, providing a wide array of products and digital platforms to customers across the United States, Europe, the Middle East, Africa, the Asia-Pacific region, Canada, and Latin America. The company's business is organized into three primary segments: Google Services, Google Cloud, and Other Bets.
Is Alphabet Inc. stock overvalued or undervalued in 2026?
On the earnings the consensus expects for 2027 ($15.34 per share), Alphabet Inc. (GOOG) trades at 18.1× earnings (P/E), below the median of the 80 communication companies over $2bn in Kaplio's universe. The P/E on the last twelve months (14.5×) is based on earnings per share of $19.16, which include about $8.52 of gains from outside the business; without them, they would be around $10.64. That is why this range uses expected earnings. At the decade median (31.1×) $477 (+71 %); at its sector median (20.0×) $307 (+10 %).
Kaplio overview: Alphabet Inc.
Market cap $3.41T · 52 weeks $273 – $399 (30 % below the high) · P/E 14.5× · 2027 est. P/E 18.1× · Dividend 0.30 % · Next earnings February 3, 2027 · expected EPS $3.26 · Closing price, Oct 30 · accounts published Oct 28.
- Valuation: P/E 14.5× (cheap).
- Business: EBITDA margin 44.9 % (excellent).
- Balance sheet: Net debt/EBITDA 0.2× (solid).
- Earnings: 7 of 8 (uneven).
What would it be worth at its usual multiples?
On those earnings: at the decade median (31.1×) $477 (+71 %); at its sector median (20.0×) $307 (+10 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
Earnings per share over the last twelve months ($19.16) include about $8.52 of gains from outside the business; without them, they would be around $10.64, and the consensus expects $15.34 for 2027. That is why this range uses expected earnings.
Why is Alphabet Inc.'s P/E so low?
Alphabet Inc. trades at a P/E of 14.5× on reported earnings, but over the last 12 months 45 % of its pre-tax income ($131B) came from outside the business, such as revaluations or sales of stakes in other companies. It is real money, but it doesn't repeat every year. Without that part, its P/E would be about 26.2×. On analysts' expected earnings for 2027, its P/E is 18.1×. Kaplio's calculation from the official quarterly accounts filed up to the quarter ended September 30, 2026.
| Quarter ended | From the business | Outside the business | Net income |
|---|---|---|---|
| December 31, 2025 | $35.9B | $3.2B | $34.5B |
| March 31, 2026 | $39.7B | $37.7B | $62.6B |
| June 30, 2026 | $40.8B | $98.0B | $112B |
| September 30, 2026 | $40.6B | −$8.2B | $26.5B |
What matters in communication: 5 of 6 pass
- FCF yield 2.2 %, fails.
- 3y revenue growth 15.4 %, passes.
- EBITDA margin 44.9 %, passes.
- Capex / Revenue 22.7 %, passes, near the threshold.
- Net debt / EBITDA 0.2×, passes.
- Payout on FCF 13.7 %, passes.
- EV/EBITDA vs own 5y 10.9×, info.
Against its peers (reference peers) — Alphabet Inc.: P/E 14.5×; EV/EBITDA 18.9×; ROIC 14.8 %; $3.4T. Meta Platforms, Inc. (P/E 21.0×; EV/EBITDA 13.7×; ROIC 18.1 %; $1.4T), Baidu, Inc. (P/E —; EV/EBITDA 46.5×; ROIC 2.1 %; $26.0B), Pinterest, Inc. (P/E 77.5×; EV/EBITDA 40.0×; ROIC 4.2 %; $11.0B).
Expensive or cheap against its last ten years?
P/E at each close: today 14.5× · median 31.1× · minimum 14.5× · maximum 67.8× · cheap below 28.2× · expensive above 41.6×. Earnings over the last 12 months are distorted: today's P/E compared with its history is not representative.
Dividend
token · Yield 0.30 % ($0.83 per share in 2025) · Years raising it 1 · paying since 2024 · Free cash flow coverage 8.4× · With $1,000 invested today you'd collect $3.00 a year ($0.25 a month).
Kaplio's reading: Alphabet Inc.
Updated on October 27, 2026 · accounts published on July 22, 2026
Reading of October 26, 2026: A highly profitable platform with widening margins and a fortress balance sheet
Alphabet trades at a P/E of 15.8× over the last 12 months, but without one-off gains it would be about 31.3×, in line with its decade median of 31.1×.
- Is Alphabet expensive or cheap? Without one-off gains, the P/E rises to about 31.3×, level with its decade median of 31.1× and well above the sector's 20.0×.
- How is the business doing? Operating margin reached 33 % over the last 12 months, above the 26 % average of fiscal 2014-2025, with revenue up 15 %.
- How strong is the balance sheet? Debt/equity is 0.18 and net debt was just 0.2× EBITDA in fiscal 2025, with net cash of $5.51 per share.
- What to expect from the next earnings? Analysts expect EPS of $3.03 when Alphabet reports on October 28, 2026; 66 of 79 analysts recommend buying.
- Does the dividend fit within the cash the platform generates? Fiscal 2025 dividends took 13.7 % of free cash flow, far below the 80 % ceiling considered healthy for internet platforms.
Is Alphabet expensive or cheap?
Over the last 12 months Alphabet shows a P/E of 15.8×, below the sector median of 20.0× and about half its ten-year median of 31.1×. Most of that discount comes from the accounts. 51 % of pre-tax profit came from outside the business, such as revaluations or sales of stakes in other companies. Without that money the P/E would be about 31.3×, right on its decade median. On analysts' 2027 earnings it is 20.5×, and EV/EBITDA without those gains is 22.8×. A free cash flow yield of 2.2 % over the last 12 months shows the market is paying a full price for the cash the business generates.
How is the business doing?
Revenue grew 15 % over the last 12 months and EPS rose 35 %, though part of that EPS jump comes from the one-off gains. The operating margin of 33 % is above the 32 % of fiscal 2025 and well above the 26 % average of fiscal 2014-2025, so the core business earns more on each dollar of sales as it grows. ROIC of 15.2 % over the last 12 months is 9.5 points above the sector median of 5.7 %, and it stayed above 10 % in 9 of the last 10 fiscal years. The 55 % net margin is inflated by those gains, so the operating margin is the cleaner gauge.
How strong is the balance sheet?
Alphabet carries little debt. Debt/equity is 0.18 over the last 12 months and net debt was 0.2× EBITDA in fiscal 2025, far below the 1.5× tolerated for internet platforms. Net cash of $5.51 per share is only 1.8 % of the current price, so the cushion is solid but does not move the valuation. A current ratio of 2.72, an Altman Z of 15.0 in the safe zone and a Piotroski score of 7 out of 9 point the same way. The dividend yields 0.3 % over the last 12 months and took 8 % of fiscal 2025 earnings, so dividends are a small part of shareholder returns.
What to expect from the next earnings?
Alphabet has beaten EPS estimates in 8 of the last 8 quarters. On July 22, 2026 it reported EPS of $9.11 against $2.87 expected, a +217.4 % surprise and the largest of those 8 quarters. The bar for October 28, 2026 is $3.03. The 2026 EPS consensus has barely moved in the last 30 days, holding at $20.60 among 12 analysts, and revenue estimates are also flat. Coverage is broad: 79 analysts, with 66 recommending buy, 9 hold and 1 sell. With expectations stable, the figure to watch is how much of reported profit comes from the business itself and how much from gains on stakes.
Does the dividend fit within the cash the platform generates?
Internet platforms live off network effects and now off heavy AI capex, so this sector is judged on growth, EBITDA margin and how much cash survives investment. Alphabet passes most tests. Revenue per share grew 15.4 % a year in fiscal 2022-2025, against a healthy level of 10 %, and the EBITDA margin was 44.9 % in fiscal 2025, against 30 %. Capex took 22.7 % of revenue, close to the 25 % ceiling. That spending explains why the free cash flow yield, 1.9 % on fiscal 2025 cash at today's price, misses the 3 % bar. With a 13.7 % payout on free cash flow, the dividend fits with ample room.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Profitability
| Return on Equity | 42.62% |
| Return on Invested Capital | 14.81% |
| Return on Assets | 23.49% |
| Gross Margin | 60.86% |
| Operating Margin | 33.32% |
| Net Margin | 50.03% |
Financial Health
| Debt / Equity | 0.21 |
| Current Ratio | 2.79 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 15.03 |
Price Performance
| 1 month | -18.25% |
| 3 months | -25.30% |
| Year-to-date | -11.34% |
| 1 year | -1.28% |
| 3 years | +116.38% |
| 5 years | +90.74% |
| 10 years | +630.04% |
Dividend History
Paid in the last 12 months: $0.8600 per share in 4 payments.
| Date | Amount |
|---|---|
| 2026-09-04 | $0.2200 |
| 2026-06-08 | $0.2200 |
| 2026-03-09 | $0.2100 |
| 2025-12-08 | $0.2100 |
| 2025-09-08 | $0.2100 |
| 2025-06-09 | $0.2100 |
| 2025-03-10 | $0.2000 |
| 2024-12-09 | $0.2000 |
| 2024-09-09 | $0.2000 |
| 2024-06-10 | $0.2000 |
Amounts adjusted for stock splits.
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Explore sector: Communication Services · Internet Content & Information
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