Internet Content & Information · NASDAQ
Current Price
$349.94
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Alphabet Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Alphabet Inc. provides various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment offers products and services, including ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play store; and Fitbit wearable devices, Google Nest home products, Pixel phones, and other devices, as well as in the provision of YouTube non-advertising services. The Google Cloud segment offers infrastructure, platform, and other services; Google Workspace that include cloud-based collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells health technology and internet services. The company was founded in 1998 and is headquartered in Mountain View, California.
ROIC (TTM)
19.2%
ROE (TTM)
39.0%
FCF Yield
1.52%
Based on trailing twelve-month data, GOOGL shows a free cash flow per share of N/A and a ROIC of 19.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 1.52% are important context metrics when evaluating GOOGL's stock valuation relative to peers.
The intrinsic value of GOOGL depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether GOOGL is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $349.94. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Alphabet Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Internet Content & Information industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting GOOGL's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Alphabet Inc., this means projecting how much free cash flow the Internet Content & Information will produce over the next 5-10 years, then discounting those amounts to today's dollars. GOOGL's ROIC of 19.2% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For GOOGL, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
