Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Analysis of Revenues
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Historical Valuation Ratios (Summary)
Alphabet Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The financial ratios exhibit several notable trends over the observed periods. Initially, the Price to Earnings (P/E) ratio demonstrates a general decline from 34.65 in March 2021 to 17.91 in March 2025, with fluctuations that include a moderate rise around late 2023. This decreasing trend suggests that the company's earnings may be growing relative to its share price or that market valuation has become more conservative over time.
Similarly, the Price to Operating Profit (P/OP) ratio follows a downward trajectory from 33.85 in March 2021 to 16.92 in March 2025. There are intermittent increases, particularly towards the end of 2023 and mid-2024, indicating some variability in operating profit relative to share price, but the overall movement suggests improving operating profit margins or a correction in market valuation.
The Price to Sales (P/S) ratio initially increases from 7.65 in March 2021 to a peak near 8.26 in September 2021, then experiences a significant drop to 4.35 by December 2022. Post this low, it regains some ground to fluctuate between approximately 4.66 and 6.75 through March 2025 without reaching previous highs. This pattern may reflect changes in sales growth rates, market price adjustments, or shifts in investor sentiment toward sales performance.
The Price to Book Value (P/BV) ratio shows an overall increasing trend from 4.5 at the beginning of 2020 to a peak near 7.95 in September 2021, then declines to 4.84 by September 2022. Subsequently, it rises again, peaking above 7.3 in mid-2024 before decreasing to 5.76 by March 2025. This oscillating pattern indicates changing market perceptions of the company's net asset value relative to its market price, potentially influenced by asset revaluations, profitability changes, or broader market conditions.
Overall, the data indicate a general improvement in valuation multiples related to earnings and operating profit, as reflected in declining P/E and P/OP ratios, which may be driven by enhanced profitability or market corrections. Meanwhile, the P/S and P/BV ratios reveal more volatility, suggesting fluctuations in sales effectiveness and asset valuation perceptions over the analyzed periods.
Price to Earnings (P/E)
Alphabet Inc., historical P/E calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Net income (in millions) | ||||||||||||||||||||||||||||
| Earnings per share (EPS)2 | ||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/E ratio4 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/E Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2025 Calculation
EPS
= (Net incomeQ1 2025
+ Net incomeQ4 2024
+ Net incomeQ3 2024
+ Net incomeQ2 2024)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Alphabet Inc. Quarterly or Annual Report.
4 Q1 2025 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The financial data reveals several notable trends relating to share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the examined periods.
- Share Price
- The share price demonstrated an overall upward trajectory from 67.07 US$ in March 2020 to a peak near 193.3 US$ by December 2024. Initially, the price showed steady quarterly increases through 2021, reaching approximately 148 US$ at year-end 2021. However, there was a notable decline in 2022, with the share price falling to around 94.82 US$ in September 2022 before recovering towards the end of 2022 to about 105.22 US$. From early 2023 onward, the share price resumed an upward trend, reaching its highest levels in late 2024 above 190 US$. An interim decline is observed in the final quarter included (March 2025), where the price dropped to approximately 163.85 US$.
- Earnings per Share (EPS)
- EPS data begins from March 2021, indicating consistent growth over the periods reported. Starting at 2.99 US$, EPS increased steadily each quarter, surpassing 9 US$ by March 2025. Notably, the growth rate appears to accelerate slightly in later quarters, signifying improving profitability. Even during intervals of share price volatility (such as in 2022), EPS remained on a positive and upward path without corresponding sharp decreases.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio starts at approximately 34.65 in March 2021, reflecting higher market valuation relative to earnings at that time. Over the succeeding quarters, this ratio generally declined to levels in the low 20s by late 2021, indicating a reduction in valuation multiples despite rising share prices and EPS. There was a brief rise to over 26 in late 2022 and mid-2023, but the overall trend remains downward to 17.91 by March 2025. This pattern suggests that earnings growth outpaced share price increases during this period, possibly reflecting market adjustments or changing investor expectations.
In summary, the data reveals sustained earnings growth accompanied by a robust, albeit volatile, share price performance. The decreasing P/E ratio suggests the stock became relatively less expensive compared to earnings over time, which, combined with accelerating EPS, may indicate an improving fundamental valuation. The observed fluctuations in share price, especially during 2022, contrast with consistent earnings improvements, highlighting potential external market or sector factors influencing the stock price independently of core profitability.
Price to Operating Profit (P/OP)
Alphabet Inc., historical P/OP calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Income from operations (in millions) | ||||||||||||||||||||||||||||
| Operating profit per share2 | ||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/OP ratio4 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2025 Calculation
Operating profit per share
= (Income from operationsQ1 2025
+ Income from operationsQ4 2024
+ Income from operationsQ3 2024
+ Income from operationsQ2 2024)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Alphabet Inc. Quarterly or Annual Report.
4 Q1 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the share price, operating profit per share, and the price-to-operating profit (P/OP) ratio over the observed periods.
- Share Price Trends
- The share price experienced a general upward trajectory from March 2020 through December 2021, starting at $67.07 and peaking at $148.04. However, in the first half of 2022, a decline was observed, with prices falling to $94.82 by September 2022. Subsequently, the price showed signs of recovery, reaching $141.80 by December 2023. From early 2024 onward, the share price demonstrated strong growth again, reaching a high of $193.30 in December 2024 before slightly declining to $163.85 in March 2025.
- Operating Profit Per Share
- Operating profit per share data is available starting from March 2021, where it began at $3.06 and showed steady and consistent growth through the years. It increased from $3.06 in March 2021 to $9.68 in March 2025, illustrating a strong improvement in profitability on a per-share basis over the analyzed period. Notably, the growth rate remained positive throughout all quarters without significant volatility.
- Price-to-Operating Profit (P/OP) Ratio
- The P/OP ratio demonstrates a general downward trend from March 2021, starting at 33.85 and decreasing to a low of 15.62 in September 2022, suggesting that the share price growth initially outpaced improvements in operating profit per share. Following this low, the ratio fluctuated but generally remained between 16 and 23. It reached 21.93 in September 2023, then showed some volatility afterwards but declined to 16.92 by March 2025. The overall trend implies increasing market efficiency or normalization in the valuation relative to operating profits after the period of rapid price appreciation.
- Interrelationships and Insights
- The early period saw share price gains that were significantly higher than corresponding increases in operating profit per share, resulting in elevated P/OP ratios. This might reflect market optimism or other valuation factors. The subsequent correction in share price in 2022 coupled with continued operating profit increases led to a significant decrease in the P/OP ratio. The gradual stabilization and moderate rises in this ratio thereafter suggest a better alignment between market valuation and operational profitability.
- Overall, the data suggests a positive earnings trajectory with some market valuation volatility, highlighting periods of aggressive valuation adjustments followed by consolidation phases.
Price to Sales (P/S)
Alphabet Inc., historical P/S calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Revenues (in millions) | ||||||||||||||||||||||||||||
| Sales per share2 | ||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/S ratio4 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/S Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2025 Calculation
Sales per share
= (RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024
+ RevenuesQ2 2024)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Alphabet Inc. Quarterly or Annual Report.
4 Q1 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The analysis of the financial data reveals several important trends and notable changes over the periods presented.
- Share Price
- The share price demonstrated a general upward trend from March 2020 through December 2021, rising significantly from $67.07 to a peak of $148.04. Subsequently, there was a marked decline in the first three quarters of 2022, reaching a low of $94.82 in September 2022. The share price then exhibited a recovery phase, increasing steadily through 2023 and into 2024, peaking at $193.30 in December 2024 before decreasing again to $163.85 by March 2025. This pattern indicates periods of both strong growth and volatility.
- Sales per Share
- A consistent upward trajectory is observed in sales per share starting from March 2021 at $13.54, rising steadily each quarter without any reported declines. This metric increased to $29.64 by March 2025, reflecting sustained revenue growth on a per-share basis over the years analyzed.
- Price-to-Sales Ratio (P/S)
- The P/S ratio, starting from March 2021, initially rose from 7.65 in March 2021 to a peak of 8.26 in September 2021, indicating a relatively high market valuation compared to sales. After that, the ratio decreased substantially through 2022, reaching a low of 4.35 in December 2022. Following this dip, the ratio experienced fluctuations, with increases and decreases through 2023 and 2024, peaking again at 6.75 in December 2024 before falling to 5.53 in March 2025. These shifts suggest changes in market sentiment and valuation relative to sales growth.
Overall, the data portray a company with growing sales per share, accompanied by share price volatility and changing market valuation multiples over the observed period. The divergent movement between steadily increasing sales per share and fluctuating share price and P/S ratios highlights evolving investor perceptions and external market dynamics impacting the stock price independently of sales growth trends.
Price to Book Value (P/BV)
Alphabet Inc., historical P/BV calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Stockholders’ equity (in millions) | ||||||||||||||||||||||||||||
| Book value per share (BVPS)2 | ||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/BV ratio4 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2025 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Alphabet Inc. Quarterly or Annual Report.
4 Q1 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The share price exhibited a general upward trend from March 2020 through December 2021, increasing from $67.07 to a peak of $148.04. However, starting in March 2022, the share price experienced volatility and a notable decline, reaching a lower point of $94.82 in September 2022. Following this trough, there was a recovery trend through 2023 and into 2024, with the price rising to a peak of $193.30 in December 2024 before declining again to $163.85 by March 2025.
The book value per share (BVPS) showed consistent and steady growth throughout the period analyzed. BVPS increased gradually from $14.92 in March 2020 to $28.45 by March 2025, indicating a solid increase in the intrinsic value of the company’s equity over time.
The price-to-book value ratio (P/BV) exhibited more variability compared to the other metrics. Initially, the P/BV ratio rose from 4.5 in March 2020 to a high of 7.95 in September 2021. This period corresponds with the sharp increase in share price while BVPS growth was moderate. The ratio then declined significantly to 4.84 in September 2022, coinciding with the stock price drop mentioned earlier.
After this decline, the P/BV ratio increased again to values above 7 during 2024, peaking at 7.33 in March 2024, reflecting the rebound in share price relative to book value. However, towards the most recent period in March 2025, the ratio fell to 5.76, indicating some moderation in valuation despite the ongoing increase in book value.
- Summary of Trends
-
1. Share price growth was strong initially but experienced significant volatility starting early 2022, with a sharp decline followed by a recovery period and subsequent fluctuations.
2. Book value per share consistently increased, demonstrating steady growth in net asset value per share with no periods of decline.
3. P/BV ratio movements indicate changing market sentiment and valuation multiples, with elevated levels during bull phases and contractions during market corrections or price declines.
- Insights
-
The divergence between steady BVPS growth and fluctuating share price suggests that market valuation was influenced strongly by external factors beyond underlying equity value, including market sentiment and investor expectations. The significant drops in share price and P/BV ratio around 2022 point to potential market corrections or adverse events impacting investor confidence. The recovery in price and P/BV during 2023 and 2024 may reflect regained confidence or improved outlooks.
The high P/BV ratios at certain peaks indicate the stock was trading at a premium to its book value, implying optimistic growth prospects priced in by the market. The moderation of this ratio in the latest period suggests a more cautious or balanced valuation approach by investors.