| Company name | Alphabet Inc |
| Stock ticker | GOOGL |
| Live stock price | [stckqut]GOOGL[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Good |
| EPS growth | Poor |
| P/E growth | Good |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $1231.65 |
| Target stock price (averages with growth) | $1745.45 |
| Target stock price (averages with no growth) | $1348.75 |
| Target stock price (manual assumptions) | $1207.61 |
The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/googl
Alphabet Inc., incorporated on July 23, 2015, is a holding company. The Company’s businesses include Google Inc. (Google) and its Internet products, such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo and X. The Company’s segments include Google and Other Bets. The Google segment includes its Internet products, such as Search, Ads, Commerce, Maps, YouTube, Google Cloud, Android, Chrome and Google Play, as well as its hardware initiatives. The Google segment is engaged in advertising, sales of digital content, applications and cloud offerings, and sales of hardware products. The Other Bets segment is engaged in the sales of Internet and television services through Google Fiber, sales of Nest products and services, and licensing and research and development (R&D) services through Verily.
Google is engaged in investing in infrastructure, data management, analytics and artificial intelligence (AI). The Company offers Google Assistant, which allows users to type or talk with Google in a natural conversational way to help them get things done; Google Maps, which helps users navigate to a store while showing them current traffic conditions, and Google Photos, which helps users store and organize all of their photos. The Company invests in platforms, such as Chrome browser, Android mobile operating system, Chrome operating system and Daydream virtual reality platform, as well as its hardware devices, such as the Pixel phone and Google Home.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Alphabet Inc as long as the indicators that I describe in my book The Confident Investor are favorable.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Alphabet Inc calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $1068.07
- Growth: 0.13
- Current EPS (TTM): $37.7
- P/E: 28
- Future EPS Calc: $69.45
- Future Stock Price Calc: $1944.87
- Target stock price: $1207.61
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I hope that this makes you a Confident Investor.