Alphabet Inc ($GOOGL) Possible Buy to $1045 Confident Investor Rating: Good

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 Fair
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $1192.52
Target stock price (averages with growth) $1314.43
Target stock price (averages with no growth) $659.59
Target stock price (manual assumptions) $1207.31

The following company description is from Google Finance: http://www.google.com/finance?q=googl

Alphabet Inc. 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. It offers Google Assistant, which allows users to type or talk with Google; Google Maps, which helps users navigate to a store, and Google Photos, which helps users store and organize all of their photos.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Alphabet Inc.

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: $972.08
  • Growth: 0.15
  • Current EPS (TTM): $27.62
  • P/E: 35
  • Future EPS Calc: $55.55
  • Future Stock Price Calc: $1944.37
  • Target stock price: $1207.3

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I hope that this makes you a Confident Investor.

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