Assess Alphabet's (GOOG) Fundamentals Before Making a Purchase

After moving -1.3% during today's afternoon session, Alphabet is now trading at a price of $137.17 per share. On average, analysts give it a target price of $143.5.

Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America.

Potential Alphabet Investors Should Analyze the Following:

  • Alphabet has moved 35.0% over the last year.

  • The company has a price to earnings growth (PEG) ratio of 1.3. A number between 0 and 1 could mean that the market is undervaluing Alphabet's estimated growth potential

  • Its Price to Book (P/B) ratio is 6.48

Understanding Alphabet's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2023-02-03 282,836,000 -81,791,000 26 -16.13
2022-02-02 257,637,000 -67,984,000 31 34.78
2021-02-03 182,527,000 -56,571,000 23 4.55
2020-02-04 161,857,000 -54,033,000 22 -8.33
2019-02-06 136,819,000 -44,675,000 24 -7.69
2018-02-06 110,855,000 -36,390,000 26

Over the last 6 years, Alphabet's operating margins have averaged 25.3%, which is comparable to the Software industry average of 21.81%. The firm's margins exhibit a relatively stable growth trend of 0.3%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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