Alphabet Inc. (GOOGL) Stock Analysis — Graham Number, Scorecard & Financials

NASDAQ · Communication Services

Alphabet Inc.

GOOGL · Internet Content & Information

$383.84

▼ -1.85 (-0.48%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Alphabet Inc. at $383.84.

The business passes 5 of 7 of Graham's defensive criteria — adequate but not exceptional.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 59.7%

Operating Margin 32.0%

Net Income Margin 32.8%

Fin. Health A

Years to Pay Off Debt 0.4 yrs

Working Capital vs Long-Term Debt $56.7B

Working Capital $103.3B

Valuation F

Margin of Safety 0.0%

Price-to-Book 5.38x

Cash Flow C

Free Cash Flow $73.3B

CapEx % of Net Income 69.2%

Owner Earnings $244.8B

5/7

Graham Score

Enterprising

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $4,650.4B

Enterprise Value $4,642.1B

P/E (TTM) 29.28

Dividend Yield 0.22%

Exchange NASDAQ

Key Margins

Gross Profit 59.7%

Operating Margin 32.0%

Net Margin 32.8%

Company Info

Sector Communication Services

Industry Internet Content & Information

Employees 194668

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Alphabet Inc. at $383.84.

The business passes 5 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $383.84, the stock trades at a 191% premium to its Graham Number of $131.69. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

About Alphabet Inc.

Alphabet Inc. offers 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 provides products and services, including ads, Android, Chrome, devices, 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 Google Play and YouTube; and devices, as well as the provision of YouTube consumer subscription services, such as YouTube TV, YouTube Music and Premium, NFL Sunday Ticket, and Google One. The Google Cloud segment offers consumption-based fees and subscriptions for AI solutions, including AI infrastructure, Vertex AI platform, and Gemini enterprise. It also provides cybersecurity, and data and analytics services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet; and other enterprise services. The Other Bets segment sells transportation and internet services. Alphabet Inc. was incorporated in 1998 and is headquartered in Mountain View, California.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022
Gross Profit %	59.7% ▲	58.2%	56.6%	55.4%
Operating Margin %	32.0% ▼	32.1%	27.4%	26.5%
Net Income %	32.8% ▲	28.6%	24.0%	21.2%
Diluted EPS	10.81 ▲	8.04	5.80	4.56

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$595.3B	$450.3B	$402.4B	$365.3B	N/A
Total Debt	$59.3B ↑	$22.6B	$27.1B	$29.7B	N/A
Working Capital	$103.3B ▲	$74.6B	$89.7B	$95.5B	N/A
Years to Pay Debt	0.45	0.23	0.37	0.49	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$73.3B ▲	$72.8B	$69.5B	$60.0B	N/A
Owner Earnings	$244.8B	$168.0B	$118.0B	$104.9B	N/A
CapEx % of Net Income	69.2%	52.5%	43.7%	52.5%	N/A

Income Statement

	2025	2024	2023	2022
Tax Effect Of Unusual Items	4,071,984	370,968	-286,479	-981,507
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	156,460,000	133,132,000	100,032,000	91,333,000
Total Unusual Items	24,238,000	2,262,000	-2,061,000	-6,173,000
Total Unusual Items Excluding Goodwill	24,238,000	2,262,000	-2,061,000	-6,173,000
Net Income From Continuing Operation Net Minority Interest	132,170,000	100,118,000	73,795,000	59,972,000
Reconciled Depreciation	21,136,000	15,311,000	11,946,000	13,475,000
Reconciled Cost Of Revenue	162,535,000	146,306,000	133,332,000	126,203,000
EBITDA	180,698,000	135,394,000	97,971,000	85,160,000
EBIT	159,562,000	120,083,000	86,025,000	71,685,000
Net Interest Income	3,601,000	4,214,000	3,557,000	1,817,000
Interest Expense	736,000	268,000	308,000	357,000
Interest Income	4,337,000	4,482,000	3,865,000	2,174,000
Normalized Income	112,003,984	98,226,968	75,569,521	65,163,493
Net Income From Continuing And Discontinued Operation	132,170,000	100,118,000	73,795,000	59,972,000
Total Expenses	273,797,000	237,628,000	223,101,000	207,994,000
Total Operating Income As Reported	129,039,000	112,390,000	84,293,000	74,842,000
Diluted Average Shares	12,230,000	12,447,000	12,722,000	13,159,000
Basic Average Shares	12,116,000	12,319,000	12,630,000	13,063,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	132,170,000	100,118,000	73,795,000	59,972,000
Net Income Common Stockholders	132,170,000	100,118,000	73,795,000	59,972,000
Net Income	132,170,000	100,118,000	73,795,000	59,972,000
Net Income Including Noncontrolling Interests	132,170,000	100,118,000	73,795,000	59,972,000
Net Income Continuous Operations	132,170,000	100,118,000	73,795,000	59,972,000
Tax Provision	26,656,000	19,697,000	11,922,000	11,356,000
Pretax Income	158,826,000	119,815,000	85,717,000	71,328,000
Other Income Expense	26,186,000	3,211,000	-2,133,000	-5,331,000
Other Non Operating Income Expenses	1,667,000	1,137,000	556,000	1,179,000
Special Income Charges	281,000	-188,000	-628,000	-337,000
Write Off	-281,000	188,000	628,000	337,000
Earnings From Equity Interest	281,000	-188,000	-628,000	-337,000
Gain On Sale Of Security	24,238,000	2,262,000	-2,061,000	-6,173,000
Net Non Operating Interest Income Expense	3,601,000	4,214,000	3,557,000	1,817,000
Interest Expense Non Operating	736,000	268,000	308,000	357,000
Operating Income	129,039,000	112,390,000	84,293,000	74,842,000
Operating Expense	111,262,000	91,322,000	89,769,000	81,791,000
Research And Development	61,087,000	49,326,000	45,427,000	39,500,000
Selling General And Administration	50,175,000	41,996,000	44,342,000	42,291,000
Selling And Marketing Expense	28,693,000	27,808,000	27,917,000	26,567,000
General And Administrative Expense	21,482,000	14,188,000	16,425,000	15,724,000
Other Gand A	21,482,000	14,188,000	16,425,000	15,724,000
Gross Profit	240,301,000	203,712,000	174,062,000	156,633,000
Cost Of Revenue	162,535,000	146,306,000	133,332,000	126,203,000
Total Revenue	402,836,000	350,018,000	307,394,000	282,836,000
Operating Revenue	402,836,000	350,018,000	307,394,000	282,836,000

Balance Sheet

	2025	2024	2023	2022	2021
Ordinary Shares Number	12,088,000	12,211,000	12,460,000	12,849,000
Share Issued	12,088,000	12,211,000	12,460,000	12,849,000
Net Debt	15,839,000
Total Debt	59,291,000	22,574,000	27,121,000	29,679,000
Tangible Book Value	381,885,000	293,199,000	254,181,000	227,184,000
Invested Capital	461,812,000	335,967,000	295,249,000	269,001,000
Working Capital	103,293,000	74,589,000	89,716,000	95,495,000
Net Tangible Assets	381,885,000	293,199,000	254,181,000	227,184,000
Capital Lease Obligations	12,744,000	11,691,000	15,251,000	16,822,000
Common Stock Equity	415,265,000	325,084,000	283,379,000	256,144,000
Total Capitalization	461,812,000	335,967,000	295,249,000	269,001,000
Total Equity Gross Minority Interest	415,265,000	325,084,000	283,379,000	256,144,000
Stockholders Equity	415,265,000	325,084,000	283,379,000	256,144,000
Gains Losses Not Affecting Retained Earnings	-1,916,000	-4,800,000	-4,402,000	-7,603,000
Other Equity Adjustments	-1,916,000	-4,800,000	-4,402,000	-7,603,000
Retained Earnings	324,055,000	245,084,000	211,247,000	195,563,000
Capital Stock	93,126,000	84,800,000	76,534,000	68,184,000
Common Stock	93,126,000	84,800,000	76,534,000	68,184,000
Total Non Current Liabilities Net Minority Interest	77,271,000	36,050,000	37,199,000	39,820,000
Other Non Current Liabilities	8,449,000	4,694,000	4,395,000	2,247,000
Tradeand Other Payables Non Current	9,531,000	8,782,000	8,474,000	9,258,000
Non Current Deferred Liabilities			1,396,000	1,113,000	5,792,000
Non Current Deferred Revenue			911,000	599,000	535,000
Non Current Deferred Taxes Liabilities			485,000	514,000	5,257,000
Long Term Debt And Capital Lease Obligation	59,291,000	22,574,000	24,330,000	27,202,000
Long Term Capital Lease Obligation	12,744,000	11,691,000	12,460,000	14,345,000
Long Term Debt	46,547,000	10,883,000	11,870,000	12,857,000
Current Liabilities	102,745,000	89,122,000	81,814,000	69,300,000
Other Current Liabilities		6,322,000	9,525,000	9,106,000	9,799,000
Current Deferred Liabilities	6,578,000	5,036,000	4,137,000	3,908,000
Current Deferred Revenue	6,578,000	5,036,000	4,137,000	3,908,000
Current Debt And Capital Lease Obligation		2,887,000	2,791,000	2,477,000	2,189,000
Current Capital Lease Obligation		2,887,000	2,791,000	2,477,000	2,189,000
Pensionand Other Post Retirement Benefit Plans Current	17,546,000	15,069,000	15,140,000	14,028,000
Payables And Accrued Expenses	78,621,000	69,017,000	50,221,000	39,781,000
Current Accrued Expenses	64,948,000	54,259,000	39,980,000	33,021,000
Payables	13,673,000	14,758,000	10,241,000	6,760,000
Other Payable	950,000	3,866,000			397,000
Total Tax Payable	523,000	2,905,000	2,748,000	1,632,000
Income Tax Payable	523,000	2,905,000	2,748,000	1,632,000
Accounts Payable	12,200,000	7,987,000	7,493,000	5,128,000
Total Assets	595,281,000	450,256,000	402,392,000	365,264,000
Total Non Current Assets	389,243,000	286,545,000	230,862,000	200,469,000
Other Non Current Assets	16,245,000	14,874,000	10,051,000	8,707,000
Non Current Deferred Assets	9,113,000	17,180,000	12,169,000	5,261,000
Non Current Deferred Taxes Assets	9,113,000	17,180,000	12,169,000	5,261,000
Investments And Advances	68,687,000	37,982,000	31,008,000	30,492,000
Investmentin Financial Assets	68,687,000	37,982,000	31,008,000	30,492,000
Available For Sale Securities	68,687,000	37,982,000	31,008,000	30,492,000
Goodwill And Other Intangible Assets	33,380,000	31,885,000	29,198,000	28,960,000
Other Intangible Assets				2,084,000	1,417,000
Goodwill	33,380,000	31,885,000	29,198,000	28,960,000
Net PPE	261,818,000	184,624,000	148,436,000	127,049,000
Accumulated Depreciation	-98,485,000	-79,390,000	-67,458,000	-59,042,000
Gross PPE	360,303,000	264,014,000	215,894,000	186,091,000
Leases			11,425,000	10,575,000	9,146,000
Construction In Progress			35,229,000	27,657,000	23,172,000
Other Properties	311,955,000	218,611,000	175,459,000	80,648,000
Machinery Furniture Equipment			472,000	314,000	208,000
Buildings And Improvements	48,348,000	45,403,000	40,435,000
Land And Improvements			74,083,000	66,897,000	58,881,000
Current Assets	206,038,000	163,711,000	171,530,000	164,795,000
Other Current Assets	16,309,000	15,714,000	12,650,000	10,775,000
Inventory				2,670,000	1,170,000
Receivables	62,886,000	52,340,000	47,964,000	40,258,000
Taxes Receivable					966,000
Accounts Receivable	62,886,000	52,340,000	47,964,000	40,258,000
Allowance For Doubtful Accounts Receivable	-924,000	-879,000	-771,000	-754,000
Gross Accounts Receivable	63,810,000	53,219,000	48,735,000	41,012,000
Cash Cash Equivalents And Short Term Investments	126,843,000	95,657,000	110,916,000	113,762,000
Other Short Term Investments	96,135,000	72,191,000	86,868,000	91,883,000
Cash And Cash Equivalents	30,708,000	23,466,000	24,048,000	21,879,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	73,266,000	72,764,000	69,495,000	60,010,000
Repurchase Of Capital Stock	-45,709,000	-62,222,000	-61,504,000	-59,296,000
Repayment Of Debt	-32,427,000	-12,701,000	-11,550,000	-54,068,000
Issuance Of Debt	64,564,000	13,589,000	10,790,000	52,872,000
Capital Expenditure	-91,447,000	-52,535,000	-32,251,000	-31,485,000
Income Tax Paid Supplemental Data			19,164,000	18,892,000	13,412,000
End Cash Position	30,708,000	23,466,000	24,048,000	21,879,000
Beginning Cash Position	23,466,000	24,048,000	21,879,000	20,945,000
Effect Of Exchange Rate Changes	208,000	-612,000	-421,000	-506,000
Changes In Cash	7,034,000	30,000	2,590,000	1,440,000
Financing Cash Flow	-37,388,000	-79,733,000	-72,093,000	-69,757,000
Cash Flow From Continuing Financing Activities	-37,388,000	-79,733,000	-72,093,000	-69,757,000
Net Other Financing Charges	400,000	1,154,000	8,000	35,000
Proceeds From Stock Option Exercised	-14,167,000	-12,190,000	-9,837,000	-9,300,000
Cash Dividends Paid	-10,049,000	-7,363,000	0	0
Common Stock Dividend Paid	-10,049,000	-7,363,000	0	0
Net Common Stock Issuance	-45,709,000	-62,222,000	-61,504,000	-59,296,000
Common Stock Payments	-45,709,000	-62,222,000	-61,504,000	-59,296,000
Net Issuance Payments Of Debt	32,137,000	888,000	-760,000	-1,196,000
Net Long Term Debt Issuance	32,137,000	888,000	-760,000	-1,196,000
Long Term Debt Payments	-32,427,000	-12,701,000	-11,550,000	-54,068,000
Long Term Debt Issuance	64,564,000	13,589,000	10,790,000	52,872,000
Investing Cash Flow	-120,291,000	-45,536,000	-27,063,000	-20,298,000
Cash Flow From Continuing Investing Activities	-120,291,000	-45,536,000	-27,063,000	-20,298,000
Net Other Investing Changes	-2,370,000	-2,667,000	-1,051,000	1,589,000
Net Investment Purchase And Sale	-24,882,000	12,597,000	6,734,000	16,567,000
Sale Of Investment	84,607,000	104,310,000	87,619,000	97,972,000
Purchase Of Investment	-109,489,000	-91,713,000	-80,885,000	-81,405,000
Net Business Purchase And Sale	-1,592,000	-2,931,000	-495,000	-6,969,000
Purchase Of Business	-1,592,000	-2,931,000	-495,000	-6,969,000
Net PPE Purchase And Sale	-91,447,000	-52,535,000	-32,251,000	-31,485,000
Purchase Of PPE	-91,447,000	-52,535,000	-32,251,000	-31,485,000
Operating Cash Flow	164,713,000	125,299,000	101,746,000	91,495,000
Cash Flow From Continuing Operating Activities	164,713,000	125,299,000	101,746,000	91,495,000
Change In Working Capital	618,000	-8,406,000	-3,845,000	-2,235,000
Change In Other Working Capital	-806,000	-1,375,000	1,048,000	951,000
Change In Other Current Assets	-4,542,000	-1,397,000	-2,143,000	-5,046,000
Change In Payables And Accrued Expense	14,745,000	257,000	5,083,000	4,177,000
Change In Accrued Expense	13,838,000	-102,000	4,419,000	3,470,000
Change In Payable	907,000	359,000	664,000	707,000
Change In Account Payable	907,000	359,000	664,000	707,000
Change In Receivables	-8,779,000	-5,891,000	-7,833,000	-2,317,000
Changes In Account Receivables	-8,779,000	-5,891,000	-7,833,000	-2,317,000
Other Non Cash Items	2,108,000	3,419,000	4,330,000	3,483,000
Stock Based Compensation	24,953,000	22,785,000	22,460,000	19,362,000
Deferred Tax	8,348,000	-5,257,000	-7,763,000	-8,081,000
Deferred Income Tax	8,348,000	-5,257,000	-7,763,000	-8,081,000
Depreciation Amortization Depletion	21,136,000	15,311,000	11,946,000	13,475,000
Depreciation And Amortization				13,475,000
Amortization Cash Flow				641,000	886,000
Amortization Of Intangibles				641,000	886,000
Depreciation	21,136,000	15,311,000	11,946,000	13,475,000
Operating Gains Losses	-24,620,000	-2,671,000	823,000	5,519,000
Gain Loss On Investment Securities	-24,620,000	-2,671,000	823,000	5,519,000
Net Income From Continuing Operations	132,170,000	100,118,000	73,795,000	59,972,000

These metrics estimate what Alphabet Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$131.69

Margin of Safety

Market Cap ÷ Company Value

N/A

P/B Ratio

5.38

Warren's Owner Earnings

$244.8B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

5/7 — Enterprising Investor

✅ Adequate Size

$402.8B

vs > $1.5B revenue

✅ Strong Financial Condition

2.01x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

0.22%

vs Uninterrupted dividends

✅ Earnings Growth

+137.1% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

29.3x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

5.38x P/B (P/E×P/B: 157.6)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

N/A

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$246.20

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	69.2%	52.5%	43.7%	52.5%	N/A
Repurchase of Capital Stock	-$45.7B	-$62.2B	-$61.5B	-$59.3B	N/A
Free Cash Flow	$73.3B ▲	$72.8B ▲	$69.5B ▲	$60.0B •	N/A •
Warren's Owner Earnings	$244.8B	$168.0B	$118.0B	$104.9B	N/A

Peers & Industry Comparison

Internet Content & Information — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
GOOGL	$383.84	$4,650.4B	29.28	59.7%	32.8%	$402.8B
META Meta Platforms, Inc.	$609.32	$1,546.7B	22.1	81.9%	32.8%	$215.0B
SNAP Snap Inc.	$6.18	$10.4B	N/A	55.0%	-7.8%	$5.9B
PINS Pinterest, Inc.	$20.48	$13.1B	33.6	80.1%	9.9%	$4.2B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.56%

Low — management has little skin in the game

Return on Equity (ROE)

31.8%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

22.2%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$45.7B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+162.7% YoY

Debt is growing — management is leveraging up

Leadership Team

Sundar Pichai

CEO & Director

Age 52

Pay: $10,906,079

0.008% of net income

Ruth Porat

President & Chief Investment Officer

Age 67

Pay: $1,015,596

0.001% of net income

Lawrence Edward Page II

Co-Founder & Director

Age 52

Pay: $1

0.000% of net income

Sergey Brin

Co-Founder & Director

Age 51

Pay: $1

0.000% of net income

Anat Ashkenazi

Senior VP & CFO

Age 52

Pay: $1,087,961

0.001% of net income

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	9.08%	528,969,322
Blackrock Inc.	7.59%	441,987,843
FMR, LLC	3.98%	231,778,122
State Street Corporation	3.92%	228,296,955
Geode Capital Management, LLC	2.51%	146,193,037
Morgan Stanley	2.09%	121,794,366
NORGES BANK	1.68%	97,553,478
Price (T.Rowe) Associates Inc	1.44%	83,963,036

Risk Analysis

Beta (Market Risk)

1.27

Moderate volatility — moves slightly more than market

Short Interest

1.3% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.20x

Conservative balance sheet — low financial risk

Current Ratio

1.92x

Adequate liquidity

52-Week Price Range

Low: $147.84 Current: $383.84 High: $387.38

Currently at 99% of 52-week range

360investing

Alphabet Inc.

Metric Explanations

Full Graham Analysis

About Alphabet Inc.

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Graham's Fair Value

Warren's Owner Earnings

Graham's 7 Criteria

Graham's 7 Criteria — Explained

Net Current Asset Value

Earnings Power Value

Cash Flow Analysis

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis