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Alphabet Inc
NASDAQ:GOOGL

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Alphabet Inc
NASDAQ:GOOGL
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Price: 349.94 USD 0.05% Market Closed
Market Cap: $4.2T

EV/GP

17.3
Current
73%
More Expensive
vs 3-y average of 10

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
17.3
=
Enterprise Value
$3.6T
/
Gross Profit
$240.3B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
17.3
=
Enterprise Value
$3.6T
/
Gross Profit
$240.3B

Valuation Scenarios

Alphabet Inc is trading above its 3-year average

If EV/GP returns to its 3-Year Average (10), the stock would be worth $202.01 (42% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-74%
Maximum Upside
No Upside Scenarios
Average Downside
55%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 17.3 $349.94
0%
3-Year Average 10 $202.01
-42%
5-Year Average 10.1 $205.37
-41%
Industry Average 4.5 $90.52
-74%
Country Average 6.5 $131.87
-62%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close

Market Distribution

Higher than 85% of companies in the United States of America
Percentile
85th
Based on 9 428 companies
85th percentile
17.3
Low
0 — 4.2
Typical Range
4.2 — 10.6
High
10.6 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 4.2
Median 6.5
70th Percentile 10.6
Max 1 764 211.7

Alphabet Inc
Glance View

Alphabet Inc., birthed from the colossal success of Google, stands as a testament to the transformative power of innovation and strategic diversification. Born out of a reorganization in 2015, Alphabet was designed to segregate Google's core services, like search and advertising, from its wildly ambitious "Other Bets" ventures, such as self-driving cars, health tech, and urban innovation initiatives. This structural transformation enabled Alphabet to pursue moonshot ideas without hampering the profitability and operational focus of Google's core business. Google, undeniably the crown jewel of Alphabet's empire, drives the vast majority of the company's revenue through its dominance in digital advertising. With unparalleled reach through its search engine, YouTube, and the Google Display Network, Google captures billions in revenue by connecting advertisers with an expansive global audience. Beyond advertising, Alphabet has ventured into various sectors to broaden its revenue streams. Google Cloud, for example, has carved out a substantial niche in the competitive cloud computing industry, catering to both corporate giants and budding startups with its powerful infrastructure and artificial intelligence capabilities. Meanwhile, the company's "Other Bets," though yet to reach the financial heights of Google, represent a bold exploration into emerging technologies. Projects like Waymo seek to revolutionize transportation with autonomous vehicles, while initiatives under Verily and Calico aim to extend human life and enhance healthcare. In this way, Alphabet not only continues to fortify its dominance in the digital realm but also positions itself as a vanguard of future technological breakthroughs.

GOOGL Intrinsic Value
205.83 USD
Overvaluation 41%
Intrinsic Value
Price $349.94
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