A Business at a Glance
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As our founders Larry and Sergey wrote in the original founders' letter, "Google is not a conventional company. We do not intend to become one." That unconventional spirit has been a driving force throughout our history, inspiring us to tackle big problems and invest in moonshots. It led us to be a pioneer in the development of artificial intelligence (AI) and, since 2016, be an AI-first company. We continue this work under the leadership of Alphabet and Google CEO, Sundar Pichai. Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments, Google Services and Google Cloud, and all non-Google businesses collectively as Other Bets. Supporting these businesses, we have centralized certain AI-related research and development focused on advanced research in AI and developing the frontier models that serve our businesses, which is reported in Alphabet-level activities.
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Google advertising | $209.50B | $224.47B | $237.85B | $264.59B | $294.69B | 46% |
Google Search & other | $148.95B | $162.45B | $175.03B | $198.08B | $224.53B | 35% |
Google subscriptions, platforms, and devices | $28.03B | $29.05B | $34.69B | $40.34B | $48.03B | 8% |
YouTube ads | $28.84B | $29.24B | $31.51B | $36.15B | $40.37B | 6% |
Google Network | $31.70B | $32.78B | $31.31B | $30.36B | $29.79B | 5% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 402.8B | 402.8B | 350.0B | 307.4B | 282.8B | 257.6B |
| Net Income | 132.2B | 132.2B | 100.1B | 73.8B | 60.0B | 76.0B |
| EPS | $10.81 | $10.81 | $8.04 | $5.80 | $4.56 | $5.61 |
| Free Cash Flow | 73.3B | 73.3B | 72.8B | 69.5B | 60.0B | 67.0B |
| ROIC | 24.1% | 36.3% | 36.8% | 36.7% | 37.0% | 47.7% |
| Gross Margin | 59.7% | 59.7% | 58.2% | 56.6% | 55.4% | 56.9% |
| Debt/Equity | 0.15 | 0.15 | 0.08 | 0.09 | 0.11 | 0.10 |
| Dividends/Share | $0.82 | $0.83 | $0.60 | $0.00 | - | - |
| Operating Income | 129.0B | 129.0B | 112.4B | 84.3B | 74.8B | 78.7B |
| Operating Margin | 32.0% | 32.0% | 32.1% | 27.4% | 26.5% | 30.6% |
| ROE | 31.8% | 35.7% | 30.8% | 26.0% | 23.4% | 30.2% |
| Shares Outstanding | 12,227M | 12,227M | 12,452M | 12,723M | 13,152M | - |
Alphabet Inc. passes 7 of 9 quality checks, indicating strong fundamentals.
Alphabet Inc. trades at 29.7x trailing earnings, compared to its 15-year median P/E of 26.7x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 29.2x vs a median of 30.3x. The company's 5-year average ROIC is 38.9% with a gross margin of 57.4%. Total shareholder yield (dividends + buybacks) is 1.4%. At current prices, the estimated annualized return to fair value is +35.8%.
Alphabet Inc. (GOOGL) has a current P/E ratio of 29.7, compared to its historical median P/E of 26.7. The stock is currently considered Fair based on its historical valuation range.
Alphabet Inc. (GOOGL) has a 5-year average return on invested capital (ROIC) of 38.9%. This indicates strong capital allocation and a potential competitive advantage.
Alphabet Inc. (GOOGL) has a market capitalization of $3.9T. It is classified as a mega-cap stock.
Yes, Alphabet Inc. (GOOGL) pays a dividend with a trailing twelve-month yield of 0.26%. The company also returns capital through share buybacks, with a buyback yield of 1.16%.
Based on historical P/E analysis, Alphabet Inc. (GOOGL) appears fair. The current P/E of 29.7 is 12% above its historical median of 26.7. The estimated fair value CAGR (P/E method) is 25.3%.
Alphabet Inc. (GOOGL) operates in the Services-Computer Programming, Data Processing, Etc. industry, within the Technology sector.
Alphabet Inc. (GOOGL) reported annual revenue of $402.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
Alphabet Inc. (GOOGL) has a net profit margin of 32.8%. This is a strong margin indicating high profitability.
Alphabet Inc. (GOOGL) generated $73.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Alphabet Inc. (GOOGL) has a debt-to-equity ratio of 0.15. This indicates a conservatively financed balance sheet.
Alphabet Inc. (GOOGL) reported earnings per share (EPS) of $10.81 in its most recent fiscal year.
Alphabet Inc. (GOOGL) has a return on equity (ROE) of 35.7%. This indicates the company generates strong returns for shareholders.
Alphabet Inc. (GOOGL) has a 5-year average gross margin of 57.4%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 13 years of financial data for Alphabet Inc. (GOOGL), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Alphabet Inc. (GOOGL) has a book value per share of $33.96, based on its most recent annual SEC filing.