Alphabet Inc.
GOOGL
Services-Computer Programming, Data Processing, Etc.
Mkt Cap
$1.739TPE
26.06Debt
$16.31BCash
$30.7BEV
$1.725TFCF
$77.62BP/E Ratio
26.06Debt
$16.31BCash
$30.7BEV
$1.725TFCF
$77.62BAlphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play store; and Fitbit wearable devices, Google Nest home products, Pixel phones, and other devices, as well as in the provision of YouTube non-advertising services. The Google Cloud segment offers infrastructure, cybersecurity, data, analytics, AI, and machine learning, and other services; Google Workspace that include cloud-based collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells health technology and internet services. The company was founded in 1998 and is headquartered in Mountain View, California.
DCF
Discounted Cash Flow Valuation of Alphabet Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $77.62B | $95.47B | $115.5B | $137.5B | $160.8B | $184.9B | $209B | $231.9B | $252.8B | $270.5B | $284B | $2.84T |
| DCF | $83.01B | $87.34B | $90.38B | $91.95B | $91.94B | $90.34B | $87.2B | $82.65B | $76.9B | $70.21B | $702.1B | |
| Value | $1.554T | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 26%
Earnings Stability 87%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 21% | 21% | 22% | 11% | 22% | 21% | 22% | 30% | 21% | 22% |
| ROA | 13% | 13% | 14% | 14% | 15% | 14% | 15% | 25% | 20% | 20% |
| ROE | 14% | 13% | 14% | 8.3% | 17% | 17% | 18% | 30% | 23% | 24% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +21.31%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +2.03%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +17.35%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +1.84%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +19.06%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +3.3%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | 0.40 | 0.15 | 0.17 | 0.18 | 0.16 | 0.38 | 0.23 | 0.26 | 0.21 |
| Debt Equity | 0.05 | 0.05 | 0.03 | 0.03 | 0.02 | 0.02 | 0.07 | 0.06 | 0.06 | 0.06 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 77% | 100% | 100% | 100% | 100% | 100% | 77% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 0.21.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.02.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.77.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 21% | 21% | 20% | 9.8% | 0.44% |
| Net Income | 21% | 36% | 20% | -21% | 2.3% |
| Stockholders Equity | 11% | 11% | 8.3% | 1.8% | -1.4% |
| FCF | 21% | 20% | 25% | -10% | -0.014% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +20.6%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +0.44%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +36.49%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +2.28%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +10.93%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -1.42%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +20.21%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -0.01%.