* Note: Prices are in Million (M) USD.
Description:
Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $21,036 M
Debt : $41,668 M
EBITDA : $157,748 M
Net Debt (Debt - Cash): $20,632 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Communication
Industry: Internet content & information
Based on industry, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 20.56
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $25,335 M
Average Revenue: $113,439 M
Revenue Converted To Free Cash Flow (%): 22.3%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $350,018 M
Revenue 4 Years Ago (2020-12-31): $182,527 M
Last 5 Years Average Revenue Growth: 18%
Since Revenue Growth is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $12,447 M
Share Count 5 Years Ago (2020-12-31): $13,741 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $10.60
Trailing 12-Month Earnings Per Share (EPS): $10.06
Average Earnings Per Share (EPS): $10.33
Dividend Per Share (DPS): $1
Payout Ratio: 10%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 18.1%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $212
52-Week Low: $142
Threshold Price (15% Above 52-Week Low): $164
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $2,471,461 M
Since Market Cap is greater than 1 Trillion, 5 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 5% exposure of Total Portfolio.
Value-Trade has assigned 30 points to above Alphabet Inc Class C (GOOG) stock.
Last 4 Years Avg PE 26.98, Fair Value PE 25, Industry Based PE 25, Growth Based PE 18, RCFC Based PE 29.87, ROE Based PE 24.49, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 23.77. Value-Trades has assined P/E value 23.77. Since an average (Current Year EPS + Next Year EPS) earning per share is $10.33.
The fair value of Alphabet Inc Class C (GOOG) stock should be (23.77 x $10.33) = $245.59.
