Alphabet (GOOGL) share price forecast & analysis

Learn how to easily invest in Alphabet shares.

Alphabet
NASDAQ: GOOGL - USD
$2,607.03
- $59.12 ( - 2.22%)
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Alphabet overview

Larry Page and Sergey Brin founded Google in September 1998. Since then, the company has grown to more than 130,000 employees worldwide, with a wide range of popular products and platforms like Search, Maps, Ads, Gmail, Android, Chrome, Google Cloud and YouTube. In October 2015, Alphabet became the parent holding company of Google.

Alphabet shares at a glance

Information last updated 2022-01-16.
52-week rangeUS$1732.83 - US$3019.3301
50-day moving average US$2895.809
200-day moving average US$2657.782
Target priceUS$3334.16
PE ratio 26.8736
Dividend yield N/A (0%)
Earnings per share (TTM) US$103.805

Price chart for Alphabet (NASDAQ:GOOGL)

The advanced price chart for GOOGL displays price movement in different formats like candle sticks, bars, lines and few more. On top of this you can map many technical indicators like Moving average, Bollinger bands and Moving average convergence divergence (MACD). You have options to view these over different time frames as well as compare GOOGL with any other cryptocurrency of your choice.

Is Alphabet under- or over-valued?

Valuing Alphabet stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Alphabet's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Alphabet's P/E ratio

Alphabet's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 27x. In other words, Alphabet shares trade at around 27x recent earnings.

That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).

Alphabet's PEG ratio

Alphabet's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.855. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Alphabet's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Alphabet's EBITDA

Alphabet's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$85.2 billion (£62.9 billion).

The EBITDA is a measure of a Alphabet's overall financial performance and is widely used to measure a its profitability.

Alphabet share dividends

We're not expecting Alphabet to pay a dividend over the next 12 months.

Have Alphabet's shares ever split?

Alphabet's shares were split on a 1998:1000 basis on 2 April 2014. So if you had owned 1000 shares the day before before the split, the next day you'd have owned 1998 shares. This wouldn't directly have changed the overall worth of your Alphabet shares – just the quantity. However, indirectly, the new 49.9% lower share price could have impacted the market appetite for Alphabet shares which in turn could have impacted Alphabet's share price.

Alphabet share price volatility

Over the last 12 months, Alphabet's shares have ranged in value from as little as US$1732.83 up to US$3019.3301. A popular way to gauge a stock's volatility is its "beta".

GOOGL.US volatility(beta: 1.06)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Alphabet's is 1.0583. This would suggest that Alphabet's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).

Alphabet financials

Revenue TTM US$239.2 billion
Operating margin TTM 30.3%
Gross profit TTM US$97.8 billion
Return on assets TTM 14.01%
Return on equity TTM 30.87%
Profit margin 29.52%
Book value 367.946
Market capitalisation US$1.9 trillion

TTM: trailing 12 months

Environmental, social, and governance (ESG) summary

Alphabet Inc was last rated for ESG on: 2019-01-01.

Total ESG score 20.35
Total ESG percentile 29.34
Environmental score 3.52
Social score 6.37
Governance score 7.99
Level of controversy 4

Alphabet's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Alphabet.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Alphabet's total ESG risk score

Total ESG risk: 20.35

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Alphabet's overall score of 20.35 (as at 12/31/2018) is pretty good – landing it in it in the 29th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Alphabet is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Alphabet's environmental score

Environmental score: 3.52/100

Alphabet's social score

Social score: 6.37/100

Alphabet's governance score

Governance score: 7.99/100

Alphabet's controversy score

Controversy score: 4/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Alphabet scored a 4 out of 5 for controversy – the second-lowest score possible, reflecting that Alphabet has a damaged public profile.

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