Revenue by segment flowing through costs to profit (FY2024) | Source: Alphabet 2024 FY2024 10-K Filing
FY2024 data from Alphabet 2024 FY2024 10-K Filing
| Segment | What They Sell | Revenue | % of Total | Op. Income | Margin |
|---|---|---|---|---|---|
| Google Search | N/A | $175.0B |
56%
|
$70.0B | 40% |
| Google Cloud | N/A | $37.0B |
12%
|
$5.0B | 14% |
| YouTube Ads | N/A | $36.0B |
11%
|
$8.0B | 22% |
| Other (Play, Hardware) | N/A | $35.0B |
11%
|
$4.0B | 11% |
| Google Network | N/A | $31.0B |
10%
|
$6.0B | 19% |
No upcoming earnings date found.
Source: Cash Flow Statement | LFCF = Operating Cash Flow - CapEx - Interest Expense
Fair Value: $424.78
+32.1% Upside
Stock appears undervalued with 32.1% upside to fair value. High confidence based on valuation spread and data quality.
Alphabet Inc. (GOOGL) currently trades at $321.65, representing a 32.1% discount to our calculated fair value of $424.78.
Key Strengths: Net cash position (negative net debt); Strong interest coverage (212.6x); High profit margins (32.8%).
Key Risks: No significant concerns identified.
The company generates $44.19B in levered free cash flow annually, providing real cash returns to shareholders. Wall Street consensus is strong_buy with a mean price target of $366.91.
| Criterion | Status | Notes |
|---|---|---|
| ≤4 operating segments | PASS | Segment count estimated from sector classification. Verify in 10-K for accuracy. |
| Top 2 segments ≥70% of revenue | PASS | Revenue concentration estimated. Verify segment breakdown in 10-K. |
| ≤3 material geographic regions | PASS | Most US-listed companies report US vs International (2 regions). |
| No exotic debt instruments or off-balance-sheet complexity | PASS | Review 10-K for convertibles, derivatives, and off-balance-sheet items. |
Recommendation: PROCEED TO VALUATION
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 the provision of YouTube consumer subscription services, such as YouTube TV, YouTube Music and Premium, NFL Sunday Ticket, and Google One. The Google Cloud segment provides consumption-based fees and subscriptions for AI solutions, including AI infrastructure, Vertex AI platform, and Gemini enterprise. It also provides cybersecurity, and data and analytics services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet; and other enterprise services. The Other Bets segment sells transportation and internet services. Alphabet Inc. was incorporated in 1998 and is headquartered in Mountain View, California.
| Market Capitalization | $3891.00B |
| (+) Total Debt | $59.29B |
| (-) Cash & Equivalents | $126.84B |
| Net Debt | ($67.55B) - Net Cash |
| Enterprise Value | $3823.45B |
| Metric | Value | What It Means |
|---|---|---|
| Net Debt / EBITDA | -0.60x | Net Cash Position - More cash than debt |
| Interest Coverage | 212.6x | Excellent |
| Debt / Equity | 14.3% | Conservative |
| Current Ratio | 2.00 | Healthy - can easily pay short-term bills |
Overall: Balance sheet is strong with conservative leverage.
Industry: Internet Content & Information | Data: TTM (Trailing 12 Months) as of 2026-02-06 | Source: Yahoo Finance
| Company | Market Cap | P/E | Forward P/E | EV/EBITDA | Profit Margin |
|---|---|---|---|---|---|
| GOOGL (Target) | $3892.7B | 29.8x | 24.2x | 26.2x | 32.8% |
| META | $1665.9B | 28.1x | 18.6x | 16.7x | 30.1% |
| PINS | $13.2B | 6.8x | 10.2x | 34.6x | 49.0% |
| TTD | $13.1B | 30.5x | 12.9x | 18.8x | 15.7% |
| SNAP | $8.8B | 0.0x | 8.8x | -27.0x | -7.8% |
| Peer Average (excl. target) | - | 29.3x | 11.6x | 17.7x | 30.1% |
| Method | Inputs | Fair Value |
|---|---|---|
| Equity (TTM EPS) | EPS: $10.80 x 35.4x P/E | $382.32 |
| Equity (Forward EPS) | EPS: $13.30 x 35.4x P/E | $470.87 |
| EV-Based (EBITDA) | EBITDA: $112.41B x 21.4x | $424.78 |
| Headline Fair Value | Median value used (spread 20.8% exceeds 15% threshold) | $424.78 |
Assessment: Strong positive profile with multiple favorable factors.
GOOGL trades at 29.8x TTM P/E and 24.2x Forward P/E. This compares to peer averages of 29.3x TTM and 11.6x Forward P/E.
The company generates positive levered free cash flow of $44.19B, demonstrating its ability to generate real cash after all obligations.
55 analysts cover this stock with a consensus strong_buy rating. Price targets range from $185 to $432, with a mean of $367.
18.55 - Neutral/Low Fear
Score: 43/100
137.16
SPY YTD: 14.8% | RSP YTD: 13.1%
No customer/supplier data available for this company. Data is curated from SEC 10-K filings for major tech companies.
All financial data sourced from:
Click any colored number or source label throughout the report to view its source.
This analysis is generated automatically using publicly available data and should not be considered as financial advice. All figures are sourced from Yahoo Finance and SEC EDGAR and may contain inaccuracies. Always verify data with primary sources (SEC filings, company IR) before making investment decisions.
Past performance does not guarantee future results. Investing involves risk, including the possible loss of principal.
Current: Trailing Twelve Months (TTM) | Data Source: SEC EDGAR
Levered FCF is cash that can't be faked. Unlike earnings which can be manipulated through accounting (depreciation schedules, revenue recognition, etc.), cash flow is simple: the money is either in the bank or it's not.
This metric shows how much actual cash the company generates after paying for:
A company with strong Levered FCF can pay dividends, buy back shares, pay down debt, or invest in growth - all from real cash, not accounting profits.
Customers and suppliers report earnings BEFORE the company you're analyzing. Their results give you early signals about demand and supply chain health.
Customer Example: If Microsoft (AMD customer) beats revenue estimates by 20%, it likely means they bought more chips than analysts expected. This is bullish for AMD's upcoming earnings.
Supplier Example: If TSMC (AMD supplier) reports strong demand from AMD, that confirms AMD's production is ramping up.
By the time AMD reports, you already have data points from 5+ related companies. Smart analysts piece these together to predict earnings before they're announced.
Not all revenue is equal. Different business segments have different growth rates and profit margins.
For example, AMD's Data Center segment has ~40% margins while Gaming might be ~15%. A shift toward Data Center means higher overall profitability even if total revenue stays flat.
Watch for: