Latest Ratios: P/E Ratio 14.9x · EV/EBITDA 18.7x · ROE 35.7%. (2002–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.44T | $3.84T | $2.37T | $1.79T | $1.17T | $1.96T | $1.20T | $934.0B | $728.4B | $736.1B | $539.8B |
| Enterprise Value | $3.46T | $3.87T | $2.37T | $1.80T | $1.18T | $1.97T | $1.20T | $931.4B | $715.7B | $729.3B | $530.8B |
| P/E Ratio → | 14.90 | 29.03 | 23.69 | 24.30 | 19.46 | 25.79 | 29.89 | 27.17 | 23.64 | 58.13 | 27.76 |
| P/S Ratio | 7.29 | 9.53 | 6.77 | 5.83 | 4.13 | 7.61 | 6.59 | 5.77 | 5.32 | 6.64 | 5.98 |
| P/B Ratio | 8.36 | 9.24 | 7.29 | 6.33 | 4.56 | 7.79 | 5.41 | 4.64 | 4.10 | 4.83 | 3.88 |
| P/FCF | 174.01 | 52.38 | 32.58 | 25.80 | 19.46 | 29.26 | 28.09 | 30.16 | 31.90 | 30.79 | 20.90 |
| P/OCF | 20.86 | 23.30 | 18.92 | 17.62 | 12.76 | 21.40 | 18.48 | 17.13 | 15.18 | 19.85 | 14.98 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 9.60 | 6.78 | 5.84 | 4.16 | 7.64 | 6.60 | 5.75 | 5.23 | 6.58 | 5.88 |
| EV / EBITDA | 18.73 | 25.75 | 18.58 | 18.66 | 13.31 | 21.59 | 21.92 | 20.24 | 19.58 | 22.04 | 17.78 |
| EV / EBIT | 26.85 | 24.23 | 19.76 | 20.88 | 16.40 | 21.61 | 24.97 | 23.45 | 20.43 | 26.71 | 21.87 |
| EV / FCF | — | 52.77 | 32.60 | 25.84 | 19.59 | 29.38 | 28.10 | 30.07 | 31.35 | 30.51 | 20.55 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 59.7% | 59.7% | 58.2% | 56.6% | 55.4% | 56.9% | 53.6% | 55.6% | 56.5% | 58.9% | 61.1% |
| Operating Margin | 32.0% | 32.0% | 32.1% | 27.4% | 26.5% | 30.6% | 22.6% | 21.1% | 20.1% | 23.6% | 26.3% |
| Net Profit Margin | 32.8% | 32.8% | 28.6% | 24.0% | 21.2% | 29.5% | 22.1% | 21.2% | 22.5% | 11.4% | 21.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 35.7% | 35.7% | 32.9% | 27.4% | 23.6% | 32.1% | 19.0% | 18.1% | 18.6% | 8.7% | 15.0% |
| ROA | 25.3% | 25.3% | 23.5% | 19.2% | 16.6% | 22.4% | 13.5% | 13.5% | 14.3% | 6.9% | 12.4% |
| ROIC | 25.1% | 25.1% | 27.5% | 23.0% | 21.5% | 24.5% | 14.7% | 14.1% | 13.3% | 14.2% | 14.9% |
| ROCE | 30.2% | 30.2% | 33.0% | 27.3% | 25.3% | 28.2% | 16.7% | 16.0% | 14.8% | 16.2% | 17.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.14 | 0.14 | 0.08 | 0.10 | 0.12 | 0.11 | 0.12 | 0.08 | 0.02 | 0.03 | 0.03 |
| Debt / EBITDA | 0.39 | 0.39 | 0.20 | 0.28 | 0.34 | 0.31 | 0.49 | 0.35 | 0.11 | 0.12 | 0.13 |
| Net Debt / Equity | — | 0.07 | 0.01 | 0.01 | 0.03 | 0.03 | 0.00 | -0.01 | -0.07 | -0.04 | -0.06 |
| Net Debt / EBITDA | 0.19 | 0.19 | 0.02 | 0.03 | 0.09 | 0.08 | 0.01 | -0.06 | -0.35 | -0.20 | -0.30 |
| Debt / FCF | — | 0.39 | 0.03 | 0.04 | 0.13 | 0.11 | 0.01 | -0.08 | -0.56 | -0.28 | -0.35 |
| Interest Coverage | 216.80 | 216.80 | 448.07 | 279.30 | 200.80 | 263.24 | 357.16 | 397.25 | 307.25 | 250.48 | 195.76 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.01 | 2.01 | 1.84 | 2.10 | 2.38 | 2.93 | 3.07 | 3.37 | 3.92 | 5.14 | 6.29 |
| Quick Ratio | 2.01 | 2.01 | 1.84 | 2.10 | 2.34 | 2.91 | 3.05 | 3.35 | 3.89 | 5.11 | 6.27 |
| Cash Ratio | 1.23 | 1.23 | 1.07 | 1.36 | 1.64 | 2.17 | 2.41 | 2.65 | 3.15 | 4.21 | 5.15 |
| Asset Turnover | — | 0.68 | 0.78 | 0.76 | 0.77 | 0.72 | 0.57 | 0.59 | 0.59 | 0.56 | 0.54 |
| Inventory Turnover | — | — | — | — | 47.27 | 94.82 | 116.39 | 71.97 | 53.79 | 60.86 | 131.11 |
| Days Sales Outstanding | — | 56.98 | 54.58 | 56.95 | 51.95 | 55.68 | 62.76 | 62.00 | 56.54 | 61.59 | 57.54 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.3% | 0.3% | 0.3% | — | — | — | — | — | — | — | — |
| Payout Ratio | 7.6% | 7.6% | 7.4% | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.7% | 3.4% | 4.2% | 4.1% | 5.1% | 3.9% | 3.3% | 3.7% | 4.2% | 1.7% | 3.6% |
| FCF Yield | 0.6% | 1.9% | 3.1% | 3.9% | 5.1% | 3.4% | 3.6% | 3.3% | 3.1% | 3.2% | 4.8% |
| Buyback Yield | 1.3% | 1.2% | 2.6% | 3.4% | 5.1% | 2.6% | 2.6% | 2.0% | 1.2% | 0.7% | 0.7% |
| Total Shareholder Yield | 1.6% | 1.5% | 2.9% | 3.4% | 5.1% | 2.6% | 2.6% | 2.0% | 1.2% | 0.7% | 0.7% |
| Shares Outstanding | — | $12.2B | $12.4B | $12.7B | $13.2B | $13.6B | $13.7B | $14.0B | $14.1B | $14.1B | $14.0B |
Includes 30+ ratios · 24 years · Updated daily
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Quick answers to the most common questions about buying GOOG stock.
Alphabet Inc.'s current P/E ratio is 14.9x. The historical average is 36.6x.
Alphabet Inc.'s current EV/EBITDA is 18.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.4x.
Alphabet Inc.'s return on equity (ROE) is 35.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 22.7%.
Based on historical data, Alphabet Inc. is trading at a P/E of 14.9x. Compare with industry peers and growth rates for a complete picture.
Alphabet Inc.'s current dividend yield is 0.29% with a payout ratio of 7.6%.
Alphabet Inc. has 59.7% gross margin and 32.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Alphabet Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Capex intensity compressing free cash flow
Metrics are mathematically derived from official filings.
Discount to Peers Despite Growth Acceleration
According to reported market data, Alphabet trades at a trailing P/E of 26.06 and a forward P/E of 14.16, below Microsoft's 29.86 and Apple's 46.14, a discount that appears to reflect elevated regulatory and capital intensity concerns rather than growth expectations alone.
The gap between the trailing and forward P/E multiples, compressing from 26.06 to 14.16, implies the market expects earnings to roughly double on current estimates, which may be overstated given the Q2 2026 EPS surprise that could reflect non-recurring items. The PEG of 0.87 appears attractive on paper, but it rests on forward growth assumptions that have not yet been confirmed by guidance, so investors should treat the cheapness as conditional. The P/FCF of 46.54 is considerably less favorable than the earnings multiples, which suggests the market is discounting the heavy infrastructure spend that is absorbing reported cash flow.
Stable Margins Anchored by Search Economics
Based on Alphabet's reported figures, gross margin has held between 57.9% and 62.4% across the last ten quarters, while operating margin sits at 31.8% in Q3 2026, a band that indicates a durable structural profit base rather than a cyclical peak.
The stability of gross margin within a narrow range suggests the mix shift toward Google Cloud is not yet diluting the core advertising economics materially, though this may change as compute-intensive AI services scale. Operating margin compressed modestly from its 36.1% peak in Q1 2026, which may indicate rising depreciation from AI hardware rather than deteriorating pricing power. The Q2 2026 net margin of 93.7% is far outside the historical range and appears to reflect non-operating or one-time items, so operating margin is the more reliable gauge of earning power here.
ROIC Rising but Still Modest Against Peers
As reported in financial statements, Alphabet's ROIC climbed from 6.0% in Q3 2025 to 6.4% in Q4 2025 before easing, and at roughly 4.2% to 5.0% in the latest quarters it trails Meta at 27.6% and Microsoft at 23.9%, suggesting a heavy capital base is diluting returns.
The ROIC trend over ten quarters has been broadly flat in the 5% to 7% band, which suggests the company is not compounding returns on invested capital despite strong absolute profits. The sharp rise in net PP&E to roughly $393B implies that incremental capital is currently earning lower returns than the legacy base, a pattern that warrants close monitoring as infrastructure spend continues. ROE figures are distorted by the outsized Q2 2026 net income and should be treated with caution, so ROIC is the more useful indicator of capital efficiency.
Low Leverage With Rising Debt Trajectory
Based on reported figures, debt-to-equity has risen from 0.07 to 0.21 over ten quarters while interest coverage remains high at 34.46x in Q3 2026, indicating debt service is comfortable even as the balance sheet is becoming more levered.
The rise in leverage from near-zero levels appears to be financing infrastructure investment rather than shareholder distributions, which may be a deliberate choice given the cash flow pressure. Debt-to-EBITDA of 2.90x in the latest quarter is well within manageable ranges, but the trend is directionally important and merits continued monitoring. Interest coverage has been volatile across quarters, so a single-period reading may overstate the stability of debt service capacity.
Liquidity Buffer Strong but Cash Thin
According to reported balance sheet figures, the current ratio of 2.79 and quick ratio of 2.69 in Q3 2026 indicate ample near-term coverage, though the modest $56.3B cash balance against $325.8B of total liabilities suggests the buffer depends heavily on operating inflows.
The high current ratio appears supported by receivables and short-term investments rather than a large cash reserve, which implies that a sustained decline in operating cash flow could tighten liquidity faster than headline ratios suggest. The quick ratio tracking so closely to the current ratio indicates inventory is immaterial to liquidity, consistent with a services-driven model. Investors should monitor whether the cash position can keep pace with rising capital commitments.
Working Capital Efficiency Masking Cash Strain
Based on reported figures, the cash conversion cycle of 34 days in Q3 2026 and asset turnover of 0.13 suggest working capital is efficient, yet that efficiency may obscure how much capital is locked in long-lived infrastructure assets that do not appear in these ratios.
Asset turnover has drifted down from 0.22 to 0.13, which likely reflects the expanding asset base rather than weakening sales, but the ratio understates how much capital is being committed to slower-yielding infrastructure. A stable and short cash conversion cycle flatters the working capital picture, while the capex surge sits outside it entirely. Analysts should pair these efficiency metrics with a capex-to-revenue measure to avoid overstating operating efficiency.