GOOGL · Verdict

A summary of rules, not a profit forecast — don’t buy just because of a green verdict.

• ▲ P/E 14.6 — cheap for this stock (over 10 y: from 19.3 to 58.5)
• ▲ P/E 14.6 vs peer median 21.0 — cheaper than peers
• ▼ P/S 7.3 — expensive for this stock (over 4 y: from 4.1 to 9.5)
• ▼ P/S 7.3 vs peer median 6.5 — more expensive than peers
• ▼ EV/EBITDA 18.0 — expensive for this stock (over 4 y: from 12.6 to 20.8)
• ▼ EV/EBITDA 18.0 vs peer median 15.9 — more expensive than peers
• ▼ FCF yield 2.1% — expensive for this stock (over 4 y: from 1.9% to 5.2%)
• ▼ FCF yield 2.1% vs peer median 0.5% — more expensive than peers
• ▼ Cyclical company at peak earnings: P/E 14.6 is understated; on average earnings over 10 y it is 62.6

• ▼ Debt up 100% in 3 y
• ▲ Share count down 7% in 3 y — buybacks grow your stake
• ▲ ROE 44% — high return on equity
• ▲ Net margin rose: 21.2% → 32.8%
• ▲ Debt / equity 0.14 — moderate debt
• ▲ Free cash flow positive every year

• ▲ Revenue grows 17.2% per year (5 y)
• ▲ Earnings per share grows 29.8% per year (5 y)
• ▼ Analysts cut the earnings forecast by -4.2% in 90 days

• ▼ Over 6 mo weaker than its sector (XLC) by 13%
• ▼ Price below SMA200 — long-term downtrend
• ▼ SMA50 below SMA200 — trend down
• ▼ Over a year -1% vs S&P 500 +11% — weaker than the market

• ▼ Volatility 34% per year — much higher than the market (13%)

• ▲ Consensus of 52 analysts — buy
• ▲ Mean analyst target +45% from the current price

• ▲ S&P 500 above SMA200 — the market is in an uptrend
• ▼ Sector (XLC) below SMA200 — in a downtrend
• ▼ Sector (XLC) over 3 mo is weaker than the market by 8%