Alphabet

OVERVALUEDGOOG · NASDAQ · Communication Services
GOOG·NASDAQ·Communication Services
OVERVALUED
Alphabet
22.0%downside
MARKET PRICE
$342.32
FAIR PRICE
$267.08
MARGIN
$75.24
UNDERVALUEDFAIROVERVALUED
P/E RATIO
31.2x
DIV. YIELD
0.25%
ROE
35.0%
MARKET CAP
$4.09T
FPI
fairpriceindex.com

FAIR PRICE VALUATION

22.0%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$342.32

FAIR PRICE

$267.08

MARGIN

$75.24

UNDERVALUEDFAIROVERVALUED

P/E Ratio

31.2x

What is P/E? →

Div. Yield

0.25%

ROE

35.0%

Exceptional

Market Cap

$4.09T

Mega-cap

FPI RATING

7.9/ 10

Strong profitability and low debt levels, but expensive valuation relative to fundamentals.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$213.66CONSERVATIVE ENTRY
$267.08FAIR PRICE
$342.32MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$213.66

Fair price × 0.80

DISTANCE

37.6%

Price to entry level

At the current price of $342.32, GOOG trades 37.6% above the conservative entry level of $213.66. This entry level represents a 20% margin of safety below the calculated fair price of $267.08 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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KEY FACTS

CEO

Sundar Pichai

COUNTRY

US

HEADQUARTERS

Mountain View

SECTOR

Communication Services

EXCHANGE

NASDAQ

METHODOLOGY

How we calculate GOOG's fair price

Alphabet's fair price of $267.08 is derived from a blended model that combines DCF analysis (50%), relative valuation against Communication Services peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $342.32, GOOG trades 22.0% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting GOOG's risk profile.

RELATIVE · 30%

Comparing GOOG's valuation multiples against Communication Services peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for GOOG, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate GOOG's fair value with your own inputs.

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FAQ

What is the fair price of GOOG?+

Based on our blended model combining DCF analysis (50%), relative valuation against Communication Services peers (30%), and analyst consensus (20%), the fair price for Alphabet is $267.08. At the current market price of $342.32, GOOG trades 22.0% above its calculated fair value.

Is GOOG overvalued or undervalued?+

Alphabet is currently overvalued based on our valuation model. The stock trades at $342.32, which is 22.0% above the fair price of $267.08. The P/E ratio of 31.2x is a key metric in the valuation.

What is the margin of safety for GOOG?+

With a 20% margin of safety applied to the fair price of $267.08, the conservative entry level for GOOG is $213.66. At the current market price of $342.32, the stock trades 37.6% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is GOOG's fair price updated?+

We update fair price calculations for GOOG daily after market close. The current fair price of $267.08 incorporates the latest market data and sector multiples.

What factors affect GOOG's fair price calculation?+

GOOG's fair price of $267.08 is derived from DCF analysis (50% weight), relative valuation against Communication Services peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 31.2x, ROE of 35.0%, and dividend yield of 0.25%.

Is GOOG a good buy right now?+

At $342.32, GOOG trades 22.0% above our fair value estimate of $267.08. The stock is currently overvalued. ROE stands at 35.0% (exceptional). Fair Price Index provides valuation data — always do your own research before investing.

Does GOOG pay dividends?+

GOOG has a dividend yield of 0.25%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.