Alphabet Inc. (GOOGL)

Communication Services · Internet Content & Information · NASDAQ

$338.24

-1.70%

Investru Score

66.2 / 100

Good

Why is GOOGL moving?

GOOGL is down 1.70% today, a pullback within its broader uptrend.

Recent coverage: Alphabet (GOOGL) Challenges EU Orders to Open Up to AI and Search Rivals

Business overview

The company operates in the Communication Services sector within the Internet Content & Information industry.
The business model is supported by high operating margins of 32.0%.
The net margin stands at 32.8%.

Together, these figures reflect a highly profitable, market-leading business model with strong operational efficiency.

Bull case

Alphabet could outperform if its 15.1% revenue growth accelerates alongside its 34.5% earnings growth, while maintaining its strong 32.0% operating margin and high return on invested capital.

Bear case

The investment thesis could be pressured if the low 1.8% free cash flow yield fails to expand or if technical momentum deteriorates further below its moving averages.

GOOGL’s Investru Score changed -1.3 points recently. Want to know exactly what changed and why? That’s a Pro feature →

Score breakdown

Financial Quality: 79
Growth: 53
Profitability: 75
Balance Sheet: 81
Valuation: 66
Momentum: 26

Score history

-1.3 over the last 32 days, driven mainly by momentum (-14).

Financial quality

The return on invested capital is 28.6%.
The return on equity is 31.8%.
The free cash flow margin is 18.2%.
The earnings quality ratio is 1.25.

These metrics demonstrate exceptional capital allocation efficiency and high cash generation relative to reported net income.

ROIC: 28.6%
ROE: 31.8%
FCF Margin: 18.2%
Free Cash Flow (TTM): $73.3B
Earnings Quality (OCF ÷ Net Income): 1.2x

Valuation

The trailing price-to-earnings ratio is 17.18.
The forward price-to-earnings ratio is 21.39.
The trailing PEG ratio is 0.5.
The forward PEG ratio is 0.62.
The median PEG ratio is 0.56.
The enterprise value to EBITDA ratio is 25.01.
The price-to-sales ratio is 9.54.
The free cash flow yield is 1.8%.

These valuation multiples suggest the stock is reasonably priced relative to its growth rate, though higher on an enterprise value and price-to-sales basis.

P/E (TTM): 17.2x
Forward P/E: 21.4x
PEG (P/E ÷ EPS Growth): 0.5x
Company Median PEG: 0.6x
Price / Sales: 9.5x
EV / EBITDA: 25.0x
FCF Yield: 1.8%

Key risks

Free cash flow yield is relatively low at 1.8%, which may limit cash returns to shareholders if capital expenditures rise.(Probability: Medium · Impact: Medium)
Price-to-sales ratio is elevated at 9.54, exposing the valuation to sentiment shifts if revenue growth slows down.(Probability: Medium · Impact: High)
Short-term momentum is subdued, with the stock trading slightly below both its 50-day and 200-day moving averages.(Probability: High · Impact: Low)

Latest earnings

Q2 FY26 EPS: $9.11
Estimate: Data unavailable
Surprise: Data unavailable

The year-over-year EPS growth is 34.5%.
The earnings quality ratio is 1.25.

These earnings figures point to strong underlying profitability backed by high-quality cash conversions.

SEC filings

10-Q · Q2 FY26 · period ended 2026-06-30Filed 2026-07-23
10-Q · Q1 FY26 · period ended 2026-03-31Filed 2026-04-30
10-K · FY25 · period ended 2023-12-31Filed 2026-02-05
10-K · FY25 · period ended 2024-12-31Filed 2026-02-05
10-K · FY25 · period ended 2025-12-31Filed 2026-02-05
10-Q · Q3 FY25 · period ended 2025-09-30Filed 2025-10-30
10-Q · Q2 FY25 · period ended 2025-06-30Filed 2025-07-24
10-K · FY21 · period ended 2021-12-31Filed 2022-02-02
10-K · FY20 · period ended 2020-12-31Filed 2021-02-03

Event filings (8-K) aren't covered by this page's data source yet — only 10-K/10-Q are shown above.

Market cap $4.09T · 52-week range $235.84–$408.61 · market data as of Oct 1, 2026, 4:00 PM ET · latest SEC filing: 2026-07-23