Alphabet (GOOGL) has been quietly grinding higher, with shares up about 22% over the past 3 months and more than 58% in the past year. This has prompted fresh questions about valuation.
See our latest analysis for Alphabet.
The backdrop is a strong year of execution in search, YouTube, and especially cloud, and the latest 1 day share price gain of 1.55% suggests momentum is still building after a powerful multi year total shareholder return.
If Alphabet’s move has you thinking more broadly about tech, now could be a good time to explore high growth tech and AI stocks for other potential growth stories.
With revenue and profits still growing double digits and the stock trading just below average analyst targets, investors face a key question: Is Alphabet still undervalued, or is the market already pricing in its next leg of growth?
According to oscargarcia, the narrative fair value of $340 sits above Alphabet’s last close at $307.16, framing the stock as modestly mispriced.
Google’s balance sheet is like a bunker built with gold bricks. Cash and Marketable Securities: over $120B. Debt: practically negligible. Operating Margin: approximately 25 to 30%. Free Cash Flow: $70 to $80B per year. It is effectively raining money.
Read the complete narrative.
Curious how a cash rich fortress, accelerating earnings, and a premium future earnings multiple combine into that higher price tag? The full narrative unpacks the exact growth, margin, and valuation assumptions driving this call.
Result: Fair Value of $340 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, regulatory pressure and AI driven search disruption remain real swing factors that could compress Alphabet’s moat and derail any valuation re-rating.
Find out about the key risks to this Alphabet narrative.
While the narrative pegs Alphabet as about 9.7% undervalued at $340, the market’s own yardstick tells a more cautious story. At 29.8 times earnings versus 16.8 times for the US Interactive Media and Services industry, Alphabet looks expensive even if it sits below peer and fair ratio levels.
If the fair ratio of 37.3 times is where the market could drift over time, investors are weighing whether today’s rich premium is justified by Alphabet’s growth and quality, or whether it leaves less room for upside if sentiment cools.
See what the numbers say about this price — find out in our valuation breakdown.
If you see things differently or want to stress test the numbers yourself, you can spin up a custom Alphabet narrative in just a few minutes by starting with Do it your way.
