Alphabet Inc. (Formerly Google Inc.)

United States of America Country flag United States of America
Sector: Internet
Ticker: GOOGL
Factsheet Factsheet

Market multiple valuation of Alphabet Inc. ( GOOGL | USA)

The most common multiple used in the valuation of stocks is the P/Earnings NTM multiple (Price to Earnings). P/E relates the current share price with the market expectations in terms of Earnings Per Share. This multiple is used to compare a company's market value with its earnings. A company with a high P/Earnings NTM is considered to be overvalued; a company with a low P/Earnings NTM is considered to be undervalued.
The P/Earnings NTM ratio of Alphabet Inc. is slightly higher than the median of its peer group: around 20.00. The company valuation of Alphabet Inc. according to these metrics is consistent with the market valuation of its peer group.
The P/Earnings NTM ratio of Alphabet Inc. is higher than the average of its sector (Internet): 17.52. The company valuation of Alphabet Inc. according to these metrics is above the market valuation of its sector.
The P/Earnings NTM ratio of Alphabet Inc. is lower than its historical 5-year average: 23.3. The (current) company valuation of Alphabet Inc. is therefore below its valuation average over the last five years.

Valuation
P/E Last P/E (e) 2025P/E NTM
Alphabet Inc.Free trialFree trialFree trial
International PeersFree trialFree trialFree trial
Internet7.7316.2117.52
NASDAQ 10031.1322.2521.79
United States of America0.9412.8913.03
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Beta (Ref: NASDAQ 100)
Levered betaUnlevered beta
1-Year0.820.86
2-Year1.031.07
3-Year1.011.05
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Stock Perf excl. Dividends (in USD)
GOOGLNASDAQ 100Rel. Perf.
Year-to-Date-1.7%4.8%-6.5%
1-Week-2.8%1.2%-4.0%
1-Month-2.6%6.0%-8.5%
1-Year28.2%25.2%3.1%
3-Year38.6%54.6%-15.9%
5-Year146.0%129.6%16.4%
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International Peers - Alphabet Inc.
Company NameCtryMarket
Cap.
last (mUSD)
Alphabet Inc.USA2 296 983
International Peers Median0.36
Meta Platforms Inc.USA1 853 848
Twitter Inc.USAN/A
Electronic Arts Inc.USA34 707
Take-Two Interactive So...USA36 766
eBay Inc.USA33 176
GPRV Analysis
Alphabet Inc.
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
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Net Sales Chart
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Quotes Chart

1-Year Rebased Stock Chart

  • Alphabet Inc.
  • NASDAQ 100
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Did you know ?

On the Infront Analytics platform, there are two ways to identify the listed peers which most closely resemble a private firm:
- with Peer Tracker if you already know a listed peer.
Peer Tracker is a patented technology tool for building peer groups using industry classifications. The degree of similarity between two companies is calculated comparing their sector footprints and measured using comparability scores.
- with Market Screener if you have no listed peer in mind.
Market Screener is a dedicated interface for screening companies using multiple criteria, identifying peers, searching for comparable companies in a specific business sector.

About Market Multiples

Many methods can be used to value a company. In reality, business valuation is often a combination of these different approaches. One of the most widely used quantitative methods is the market multiples method. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. Put simply, this method multiplies the sales or profits of a business by an industry averaged multiplier to calculate the Market Value of the business.
Current multiples include:
- Historical multiples based on standardized financials for the last completed fiscal period: Last, Last Twelve Months (LTM);
- Forward multiples based on consensus estimates for the current fiscal period and next ones: Next Twelve Months (NTM), FY0, FY1.
Current multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price, while current multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV (Enterprise Value).