Alphabet Inc.

Technology
Computer Software: Programming, Data Processing
www.abc.xyz

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $2.14T
PE 23
Debt $15.78B
Cash $19.96B
EV $2.14T
FCF $55.82B

Earnings

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Sales & Net Margins

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Earnings	$94.27B
EBIT	$111.98B
ROE	30%
ROA	26%
FCF	$55.82B
Equity	$314.12B
Growth Stability	77%
PE	22.73
PEG	1.07
PB	6.82
P/FCF	38.38
P/S	6.3
Price/Cash	0.01
Debt/Equity	0.05
Debt/FCF	0.28
Net Margins	29%
Gross Margins	58%
Op. Margins	33%
Earnings CAGR	25%
Sales Growth YoY	15%
Sales Growth QoQ	4%
Sales CAGR	20%
FCF CAGR	19%
Equity CAGR	11%
Earnings Stability	0.89
Earnings Growth YoY	34%
Earnings Growth QoQ	11%

Earnings CAGR 5Y	21%
Sales CAGR 5Y	18%
FCF CAGR 5Y	18%
Equity CAGR 5Y	9%
Earnings CAGR 3Y	9%
Sales CAGR 3Y	9%
FCF CAGR 3Y	-2%
Equity CAGR 3Y	8%
Market Cap	$2.14T
Revenue	$339.86B
Assets	$430.27B
Total Debt	$15.78B
Cash	$19.96B
Shares Outstanding	12.26B
EV	2.14T
Earnings Score	95%
Moat Score	97%
Safety Score	96%
Final Score	96%
Working Capital	76.74B
Current Ratio	1.95
Gross Profit	$196.59B
Shares Growth 3y	-3%
Equity Growth QoQ	4%
Equity Growth YoY	15%

Assets & ROA

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Stockholders Equity & ROE

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Alphabet is a holding company. Internet media giant Google is a wholly owned subsidiary. Google generates 99% of Alphabet revenue, of which more than 85% is from online ads. Google's other revenue is from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue. Sales of hardware such as Chromebooks, the Pixel smartphone, and smart home products, which include Nest and Google Home, also contribute to other revenue. Alphabet's moonshot investments are in its other bets segment, where it bets on technology to enhance health (Verily), faster internet access to homes (Google Fiber), self-driving cars (Waymo), and more. Alphabet's operating margin has been 25%-30%, with Google at 30% and other bets operating at a loss.

SEC Filings

Direct access to Alphabet Inc. (GOOGL) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Alphabet Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Alphabet Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 25%

Stability 89%

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Alphabet Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Alphabet Inc..

Years

Calculation mode

= $2.1T

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$56B	$67B	$79B	$95B	$113B	$134B	$160B	$191B	$228B	$271B	$323B	$3.2T
DCF		$60B	$66B	$71B	$77B	$83B	$90B	$98B	$106B	$115B	$125B	$1.2T
Value	$2.1T

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	12/2023	TTM
Net Margins	21%	21%	22%	11%	22%	21%	22%	30%	21%	24%	29%
ROA	-	13%	14%	14%	15%	14%	15%	25%	20%	21%	26%
ROE	-	13%	14%	8%	17%	17%	18%	30%	23%	26%	30%

Good Net Margins (29.02%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

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	12/2023	TTM
Debt over FCF	-	0.4	0.15	0.17	0.18	0.16	0.38	0.23	0.26	0.23	0.28
Debt over Equity	0.05	0.05	0.03	0.03	0.02	0.02	0.07	0.06	0.06	0.06	0.05
Growth Stability	-	-	-	77%	100%	100%	100%	100%	100%	100%	77%

Good Debt/FCF ratio (0.28)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.05)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (77%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	14%	20%	23%	23%	18%	13%	41%	10%	9%	18%
Earnings YoY growth	-	12%	23%	-35%	143%	12%	17%	89%	-21%	23%	21%
Equity YoY growth	-	16%	16%	10%	16%	13%	10%	13%	2%	11%	9%
FCF YoY growth	-	41%	60%	-7%	-4%	36%	38%	56%	-10%	16%	18%