Key takeaways
- To buy shares in Alphabet, which owns Google, you'll need a broker that gives Australians access to US stock markets.
- Consider buying fractional shares if your broker allows it so you can invest in GOOGL without needing the full share price upfront.
- Use dollar-cost averaging to manage risk when building your position in Alphabet over time.
Alphabet (GOOGL) is an Internet and information business based in California. The company has two segments: Google and Other Bets. Google includes platforms such as Google Search, Gmail, Chrome, Android, Google Drive, YouTube and Google Maps. Other Bets is involved in selling Internet and TV services as well as licensing and research and development services.
How to buy shares in Alphabet
- Compare share trading platforms. To buy shares in a company listed in the US from Australia you'll need to find a trading platform that offers access to US stock markets. Look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, which will typically include your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Alphabet. Find the share by name or ticker symbol: GOOGL. Research its history to confirm it's a solid investment that matches your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Alphabet reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying using consistent intervals and amounts.
- Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Alphabet, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Alphabet. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights.
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Have Alphabet's shares ever split?
Alphabet's shares were split on a 20:1 basis on 17 July 2022. So if you had owned 1 share the day before the split, the next day you would own 20 shares. This wouldn't directly have changed the overall worth of your Alphabet shares – just the quantity. However, indirectly, the new 95% lower share price could have impacted the market appetite for Alphabet shares which in turn could have impacted Alphabet's share price.
Alphabet shares at a glance
| 52-week range | US$140.2347 - US$328.83 |
|---|---|
| 50-day moving average | US$269.1448 |
| 200-day moving average | US$202.6909 |
| Target price | US$324.5472 |
| PE ratio | 31.0542 |
| Dividend yield | US$1.02 (0.32%) |
| Earnings per share (TTM) | US$10.14 |
Use the fields above to explore the returns from a historical investment. Please refer to the charts further up this page to see performance over 5 years, or other periods. Past performance doesn't indicate future results. Capital is at risk.
Is it a good time to buy Alphabet stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Is it worth buying Alphabet stock?
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 31x. In other words, Alphabet shares trade at around 31x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
However, Alphabet's P/E ratio is best considered in relation to those of others within the internet content & information industry or those of similar companies.
- Apple (AAPL.US): 37.90
- Microsoft Corporation (MSFT.US): 34.97
- N/A (FB.US): 0.00
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 1.7086. 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.
However, it's sensible to consider Alphabet's PEG ratio in relation to those of similar companies.
- Apple (AAPL.US): 2.82
- Microsoft Corporation (MSFT.US): 2.09
- N/A (FB.US): 0.00
Alphabet's EBITDA
Alphabet's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$145.2 billion (£109.4 billion).
The EBITDA is a measure of a Alphabet's overall financial performance and is widely used to measure stock profitability.
To put Alphabet's EBITDA into context you can compare it against that of similar companies.
- Apple (AAPL.US): USD$144.7 billion
- Microsoft Corporation (MSFT.US): USD$166.4 billion
Alphabet share price volatility
Over the last 12 months, Alphabet's shares have ranged in value from as little as US$140.2347 up to US$328.83. A popular way to gauge a stock's volatility is its "beta".
Beta measures a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Alphabet's is 1.082. 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).
To put Alphabet's beta into context you can compare it against those of similar companies.
- Apple (AAPL.US): 1.109
- Microsoft Corporation (MSFT.US): 1.065
Alphabet financials
| Revenue TTM | US$385.5 billion |
|---|---|
| Operating margin TTM | 30.51% |
| Gross profit TTM | US$228.1 billion |
| Return on assets TTM | 16.28% |
| Return on equity TTM | 35.45% |
| Profit margin | 32.23% |
| Book value | 32.033 |
| Market capitalisation | US$3.8 trillion |
| EBITDA | US$145.2 billion |
TTM: trailing 12 months
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.).
To gain some more context, you can compare Alphabet's total ESG risk score against those of similar companies.
- Apple (AAPL.US): 26.15
- Microsoft Corporation (MSFT.US): 18.94
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.
Wondering how that compares? Below are the controversy scores of similar companies.
Environmental, social, and governance (ESG) summary
Alphabet Inc Class A 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 overview
Alphabet 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, devices, 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 and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers AI infrastructure, Vertex AI platform, cybersecurity, data and analytics, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.
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