Microsoft Excel LibreOffice Calc

Alphabet Inc. (GOOG)


Common Stock Valuation Ratios (Price Multiples)

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Current Valuation Ratios

Alphabet Inc., current price multiples

Microsoft Excel LibreOffice Calc
Alphabet Inc. Adobe Inc. Facebook Inc. International Business Machines Corp. Intuit Inc. Microsoft Corp. Oracle Corp. salesforce.com inc. Software & Computer Services Technology
Selected Financial Data
Current share price (P) $1,334.87
No. shares of common stock outstanding 689,687,449
Growth rate (g) 13.46%
 
Earnings per share (EPS) $44.57
Next year expected EPS $50.56
Operating profit per share $38.16
Sales per share $198.38
Book value per share (BVPS) $257.55
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 29.95 55.59 25.16 13.64 44.44 29.16 16.74 128.95 38.21 29.19
Price to next year expected earnings 26.40 49.69 21.79 10.51 32.83 26.45 14.42 128.85 33.57 25.26
Price-earnings-growth (PEG) 2.22 4.69 1.62 0.46 1.26 2.85 1.04 1,590.12 2.77 1.87
Price to operating profit (P/OP) 34.98 50.70 22.33 9.01 37.32 26.63 13.71 267.54 27.87 22.16
Price to sales (P/S) 6.73 15.95 9.96 1.50 10.20 9.09 4.70 10.78 7.33 5.90
Price to book value (P/BV) 5.18 15.38 6.61 7.09 18.46 11.18 8.52 9.17 7.67 7.71

Based on: 10-K (filing date: 2019-02-05).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Alphabet Inc., historical price multiples

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Price to earnings (P/E) 25.92 59.34 28.45 29.71 24.87
Price to operating profit (P/OP) 30.27 28.74 23.37 24.29 21.78
Price to sales (P/S) 5.82 6.78 6.14 6.27 5.44
Price to book value (P/BV) 4.49 4.93 3.99 3.91 3.44

Based on: 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-09).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Alphabet Inc.’s P/E ratio increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Alphabet Inc.’s P/OP ratio increased from 2016 to 2017 and from 2017 to 2018.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Alphabet Inc.’s P/S ratio increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Alphabet Inc.’s P/BV ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018.

Price to Earnings (P/E)

Alphabet Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 695,186,396 695,297,530 691,420,327 688,319,767 680,622,782
Selected Financial Data (US$)
Net income available to all stockholders (in millions) 30,736  12,662  19,478  15,826  14,444 
Earnings per share (EPS)2 44.21 18.21 28.17 22.99 21.22
Share price1, 3 1,145.99 1,080.60 801.49 683.11 527.83
Valuation Ratio
P/E ratio4 25.92 59.34 28.45 29.71 24.87
Benchmarks
P/E Ratio, Competitors5
Adobe Inc. 46.11 57.41 46.80 70.59 132.73
Facebook Inc. 21.51 35.20 37.05 84.21 74.26
International Business Machines Corp. 14.25 25.07 14.29 9.65 13.55
Intuit Inc. 46.88 37.26 29.60 63.89 26.44
Microsoft Corp. 50.00 26.25 26.08 30.63 16.11
Oracle Corp. 45.90 22.49 18.53 17.92 16.33
salesforce.com inc. 731.11 324.94
P/E Ratio, Sector
Software & Computer Services 31.08 35.65 26.47 28.24 21.67
P/E Ratio, Industry
Technology 24.30 27.49 21.13 19.29 18.78

Based on: 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-09).

1 Data adjusted for splits and stock dividends.

2 2018 Calculation
EPS = Net income available to all stockholders ÷ No. shares of common stock outstanding
= 30,736,000,000 ÷ 695,186,396 = 44.21

3 Closing price as at the filing date of Alphabet Inc.’s Annual Report.

4 2018 Calculation
P/E ratio = Share price ÷ EPS
= 1,145.99 ÷ 44.21 = 25.92

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Alphabet Inc.’s P/E ratio increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Price to Operating Profit (P/OP)

Alphabet Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 695,186,396 695,297,530 691,420,327 688,319,767 680,622,782
Selected Financial Data (US$)
Income from operations (in millions) 26,321  26,146  23,716  19,360  16,496 
Operating profit per share2 37.86 37.60 34.30 28.13 24.24
Share price1, 3 1,145.99 1,080.60 801.49 683.11 527.83
Valuation Ratio
P/OP ratio4 30.27 28.74 23.37 24.29 21.78
Benchmarks
P/OP Ratio, Competitors5
Adobe Inc. 42.06 44.86 36.62 49.21 86.32
Facebook Inc. 19.10 27.76 30.46 49.89 43.72
International Business Machines Corp. 9.41 12.22 12.94 8.11 8.79
Intuit Inc. 37.92 25.94 23.33 31.60 18.25
Microsoft Corp. 23.63 24.93 21.70 20.57 12.81
Oracle Corp. 12.83 16.52 13.09 12.84 12.12
salesforce.com inc. 395.31 908.77 411.51
P/OP Ratio, Sector
Software & Computer Services 22.67 24.94 21.63 20.98 16.35
P/OP Ratio, Industry
Technology 18.45 19.88 16.75 14.70 14.48

Based on: 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-09).

1 Data adjusted for splits and stock dividends.

2 2018 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 26,321,000,000 ÷ 695,186,396 = 37.86

3 Closing price as at the filing date of Alphabet Inc.’s Annual Report.

4 2018 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 1,145.99 ÷ 37.86 = 30.27

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Alphabet Inc.’s P/OP ratio increased from 2016 to 2017 and from 2017 to 2018.

Price to Sales (P/S)

Alphabet Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 695,186,396 695,297,530 691,420,327 688,319,767 680,622,782
Selected Financial Data (US$)
Revenues (in millions) 136,819  110,855  90,272  74,989  66,001 
Sales per share2 196.81 159.44 130.56 108.95 96.97
Share price1, 3 1,145.99 1,080.60 801.49 683.11 527.83
Valuation Ratio
P/S ratio4 5.82 6.78 6.14 6.27 5.44
Benchmarks
P/S Ratio, Competitors5
Adobe Inc. 13.23 13.32 9.34 9.27 8.59
Facebook Inc. 8.52 13.80 13.70 17.32 17.51
International Business Machines Corp. 1.56 1.82 2.12 1.56 1.76
Intuit Inc. 9.52 6.99 6.17 5.56 5.32
Microsoft Corp. 7.51 6.19 5.13 3.99 4.10
Oracle Corp. 4.41 5.56 4.45 4.66 4.67
salesforce.com inc. 8.89 6.96 7.09 7.82 9.54
P/S Ratio, Sector
Software & Computer Services 5.96 6.37 5.44 4.89 4.44
P/S Ratio, Industry
Technology 4.91 5.12 4.24 3.78 3.89

Based on: 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-09).

1 Data adjusted for splits and stock dividends.

2 2018 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 136,819,000,000 ÷ 695,186,396 = 196.81

3 Closing price as at the filing date of Alphabet Inc.’s Annual Report.

4 2018 Calculation
P/S ratio = Share price ÷ Sales per share
= 1,145.99 ÷ 196.81 = 5.82

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Alphabet Inc.’s P/S ratio increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Price to Book Value (P/BV)

Alphabet Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 695,186,396 695,297,530 691,420,327 688,319,767 680,622,782
Selected Financial Data (US$)
Stockholders’ equity (in millions) 177,628  152,502  139,036  120,331  104,500 
Book value per share (BVPS)2 255.51 219.33 201.09 174.82 153.54
Share price1, 3 1,145.99 1,080.60 801.49 683.11 527.83
Valuation Ratio
P/BV ratio4 4.49 4.93 3.99 3.91 3.44
Benchmarks
P/BV Ratio, Competitors5
Adobe Inc. 12.76 11.50 7.37 6.35 5.26
Facebook Inc. 5.65 7.54 6.39 7.02 6.05
International Business Machines Corp. 7.40 8.20 9.30 8.92 13.73
Intuit Inc. 24.12 26.72 24.96 10.00 7.79
Microsoft Corp. 10.02 7.69 6.08 4.66 3.96
Oracle Corp. 3.84 3.90 3.49 3.66 3.82
salesforce.com inc. 9.93 7.78 9.45 10.57 12.79
P/BV Ratio, Sector
Software & Computer Services 6.24 6.22 5.26 4.89 4.55
P/BV Ratio, Industry
Technology 6.42 5.55 4.54 4.39 4.29

Based on: 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-09).

1 Data adjusted for splits and stock dividends.

2 2018 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 177,628,000,000 ÷ 695,186,396 = 255.51

3 Closing price as at the filing date of Alphabet Inc.’s Annual Report.

4 2018 Calculation
P/BV ratio = Share price ÷ BVPS
= 1,145.99 ÷ 255.51 = 4.49

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Alphabet Inc.’s P/BV ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018.