Latest Ratios: P/E Ratio 32.5x · EV/EBITDA 28.5x · 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 | $4.25T | $3.83T | $2.36T | $1.78T | $1.16T | $1.96T | $1.20T | $935.6B | $735.0B | $741.0B | $554.2B |
| Enterprise Value | $4.28T | $3.86T | $2.36T | $1.78T | $1.17T | $1.97T | $1.20T | $933.1B | $722.3B | $734.3B | $545.2B |
| P/E Ratio → | 32.48 | 28.95 | 23.54 | 24.08 | 19.35 | 25.82 | 29.91 | 27.22 | 23.86 | 58.52 | 28.50 |
| P/S Ratio | 10.55 | 9.50 | 6.73 | 5.78 | 4.10 | 7.62 | 6.60 | 5.78 | 5.37 | 6.68 | 6.14 |
| P/B Ratio | 10.34 | 9.22 | 7.25 | 6.27 | 4.53 | 7.80 | 5.41 | 4.64 | 4.14 | 4.86 | 3.99 |
| P/FCF | 58.00 | 52.25 | 32.38 | 25.57 | 19.35 | 29.30 | 28.10 | 30.21 | 32.19 | 31.00 | 21.46 |
| P/OCF | 25.80 | 23.24 | 18.80 | 17.47 | 12.69 | 21.42 | 18.49 | 17.16 | 15.32 | 19.98 | 15.38 |
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 | — | 9.57 | 6.74 | 5.79 | 4.13 | 7.65 | 6.60 | 5.77 | 5.28 | 6.62 | 6.04 |
| EV / EBITDA | 28.47 | 25.66 | 18.47 | 18.50 | 13.23 | 21.62 | 21.93 | 20.28 | 19.76 | 22.19 | 18.26 |
| EV / EBIT | 33.12 | 24.28 | 19.64 | 20.69 | 16.30 | 21.64 | 24.98 | 23.49 | 20.62 | 26.89 | 22.46 |
| EV / FCF | — | 52.64 | 32.41 | 25.62 | 19.48 | 29.41 | 28.11 | 30.13 | 31.64 | 30.71 | 21.11 |
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 | 32.1% | 32.1% | 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 | 30.3% | 30.3% | 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 | 1110.67 | 1110.67 | 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 | — | 56.96 | 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 | 0.2% | 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 | 3.1% | 3.5% | 4.2% | 4.2% | 5.2% | 3.9% | 3.3% | 3.7% | 4.2% | 1.7% | 3.5% |
| FCF Yield | 1.7% | 1.9% | 3.1% | 3.9% | 5.2% | 3.4% | 3.6% | 3.3% | 3.1% | 3.2% | 4.7% |
| Buyback Yield | 1.1% | 1.2% | 2.6% | 3.5% | 5.1% | 2.6% | 2.6% | 2.0% | 1.2% | 0.7% | 0.7% |
| Total Shareholder Yield | 1.3% | 1.5% | 3.0% | 3.5% | 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 GOOGL stock.
Alphabet Inc.'s current P/E ratio is 32.5x. The historical average is 36.8x. This places it at the 73th percentile of its historical range.
Alphabet Inc.'s current EV/EBITDA is 28.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.5x.
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 32.5x. This is at the 73th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Alphabet Inc.'s current dividend yield is 0.23% with a payout ratio of 7.6%.
Alphabet Inc. has 59.7% gross margin and 32.1% 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
AI capex outpaces cash generation
Metrics are mathematically derived from official filings.
Margin Expansion Amid AI Investment
Gross margin improved to 61.6% in Q2 2026 from 59.5% a year earlier, while operating margin expanded to 34.0%, per recent financial statements, indicating strong pricing power and operating leverage.
The sequential improvement in gross margin despite rising AI compute costs suggests that Alphabet is effectively monetizing its AI investments, likely through higher-margin cloud and advertising products. Operating margin expansion to 34.0% from 32.4% year-over-year reflects disciplined cost management and scale benefits, particularly in Google Cloud. However, the net margin of 93.7% in Q2 2026 is distorted by a one-time gain, so investors should focus on gross and operating margins as cleaner indicators of underlying profitability.
ROIC Compression Signals Heavy Investment
ROIC fell to 5.0% in Q2 2026 from 6.9% a year earlier, as reported in the latest quarterly data, reflecting a massive capital base expansion that has yet to generate proportional returns.
The decline in ROIC from 6.9% to 5.0% over the past year is driven by a surge in invested capital, particularly in data center infrastructure (PPE grew 56% YoY). This suggests that Alphabet is in a heavy investment phase where returns are temporarily diluted. The market may be pricing in future returns from this AI capex, but the current trend warrants monitoring. If ROIC does not recover as cloud margins mature, the investment thesis could weaken.
Working Capital Efficiency Holds Steady
DSO remained stable at 50 days in Q2 2026, while DPO extended to 37 days from 16 days a year earlier, per the balance sheet data, indicating improved supplier leverage and stable receivables management.
The extension of DPO from 16 to 37 days suggests Alphabet is negotiating longer payment terms with suppliers, which improves cash flow timing and reduces working capital needs. DSO stability at around 50 days indicates consistent collection efficiency despite rapid revenue growth. The cash conversion cycle, though partially unavailable due to missing DIO data, appears to be improving, which is a positive sign for operational efficiency.
Leverage Rises to Fund AI Buildout
Debt-to-equity climbed to 0.18 in Q2 2026 from 0.10 a year earlier, with total debt reaching $112.8B, as per the balance sheet, yet interest coverage remains robust at 109.6x.
The increase in leverage is intentional, funding the AI infrastructure buildout, but it remains conservative relative to peers like Microsoft (D/E 0.29) and Apple (D/E 1.52). Interest coverage of 109.6x indicates that debt service is highly comfortable, even with higher debt levels. However, the rapid debt accumulation—up from $35.6B a year ago—warrants monitoring, especially if cash flows remain pressured by negative FCF.
Liquidity Buffer Strengthens Despite Capex
Current ratio improved to 2.72 in Q2 2026 from 1.90 a year earlier, with cash at $55.9B, according to the latest balance sheet, providing ample short-term coverage.
The improvement in the current ratio is driven by a significant increase in current assets, likely from cash and marketable securities, even as capex surged. This suggests Alphabet maintains a fortress liquidity position, capable of funding its AI investments without near-term solvency risk. The quick ratio of 2.64 indicates that inventory is not a concern, consistent with a services-heavy business model.
P/E Misleads Amid One-Time Gains
The trailing P/E of 31.9 is distorted by a one-time gain that inflated net income, while forward P/E of 16.8 better reflects ongoing earnings power, based on reported figures.
The trailing P/E is artificially low due to the $112.2B one-time gain in Q2 2026, which inflated net income and net margin to 93.7%. Investors should use forward P/E or EV/EBITDA (27.95) to assess valuation, as these metrics exclude non-recurring items. The forward P/E of 16.8 implies the market expects significant earnings growth, which aligns with the 24% revenue growth but may not fully price in the sustainability of AI-driven demand.