Googl PE Ratio Explained with Historical Data and Charts

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The Google PE ratio is a crucial metric for investors and analysts to understand the company's valuation. The PE ratio is calculated by dividing the stock price by the earnings per share.

In the last 10 years, the Google PE ratio has fluctuated between 20 and 35. This means that investors have been willing to pay between 20 and 35 times the company's earnings for its stock.

Google's PE ratio is significantly higher than the S&P 500 average, indicating that investors are willing to pay a premium for the company's growth prospects. As of 2022, the S&P 500 average PE ratio is around 20, whereas Google's PE ratio is around 30.

This premium valuation is likely due to Google's dominant position in the digital advertising market and its potential for future growth.

For another approach, see: Vanguard S&p 500 Growth

Share Price vs Fair Value

GOOGL's share price is currently trading at $246.54, which is above the estimated fair value of $242.51.

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To determine the fair value, a Discounted Cash Flow model is used, taking into account the company's future cash flows. This model estimates the fair value to be $242.51.

The PE ratio for GOOGL is 25.8x, which is higher than the peer average of 16.5x.

GOOGL's PE ratio compared to its peers is as follows:

This shows that GOOGL is expensive compared to its peers, with a PE ratio that is significantly higher than the average.

Historical Data

The historical PE ratio of Alphabet Inc. has been a topic of interest for investors and analysts alike. Over the last ten years, the mean historical PE ratio has been 29.04, with a current PE ratio of 26.31, representing an 8.96% decrease from the historical average.

The PE ratio has fluctuated significantly over the years, with a high of 61.37 in the June 2018 quarter and a low of -60.54 in the December 2017 quarter.

Credit: youtube.com, How to Get Historical PE Ratios in Excel or Google Sheets

A closer look at the data reveals some interesting trends. Here are the maximum annual decreases in the PE ratio, along with the corresponding year:

The PE ratio has also shown significant fluctuations on a quarterly basis, with a high of 25.91 in the June 2024 quarter and a low of 17.07 in the March 2025 quarter.

The average PE ratio for the years 2024 and 2023 was 23.29 and 23.91, respectively, with a change of -2.57% and 24.40%.

Google Stock Performance

Google's PE Ratio has changed significantly over the past ten years, with a current ratio of 26.38, which is 8.99% lower than the historical average of 29.04.

The PE Ratio has reached its highest point in the June 2018 quarter at 61.37, giving investors a glimpse of the stock's potential.

In contrast, the PE Ratio was at its lowest in the December 2017 quarter at -60.54, a stark reminder of the volatility of the stock market.

The maximum annual PE Ratio is 57.66, a value that's worth keeping in mind when considering a potential investment in Google.

Comparison and Analysis

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Alphabet's PE ratio of 26.01 is higher than the industry average but lower than the Technology sector average of 33.43, making it 22% lower.

In comparison to its peers, Alphabet's PE ratio is lower than Microsoft's (37.33) and Apple's (38.65), but higher than Adobe's (22.41) and eBay's (19.81). This suggests that Alphabet's stock is relatively valued compared to its peers.

Here's a comparison of Alphabet's PE ratio with its peers:

Alphabet's PE ratio is also trading below the peer average of 29.59, indicating that its stock may be a good value compared to its peers.

Comparison

Alphabet's price to earnings (P/E) ratio is 26.01, which is higher than the industry average but lower than the Technology sector average.

The Technology sector average P/E ratio is 33.43, which means Alphabet's P/E ratio is 22% lower than this average.

The 5-year average P/E ratio for Alphabet is 23.57, and the 3-year average is 22.05.

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Alphabet's current P/E ratio is 25.86, which is greater than its peers, including Meta Platforms, Inc. and Pinterest, Inc., but less than Twilio Inc.

Here's a comparison of Alphabet's P/E ratio with its peers:

GOOGL vs. GOOG

GOOGL and GOOG are often used interchangeably, but they actually refer to the same company, Alphabet Inc. However, GOOGL is the class A stock and GOOG is the class C stock.

GOOGL's PE ratio is 26.01, which is higher than ADBE's and EBAY's but lower than MSFT and AAPL's.

GOOGL's market cap is $2.98T, making it one of the largest companies in the world.

Here's a comparison of GOOGL with some of its peers:

GOOGL's market cap is significantly larger than most of its peers, with only MSFT and AAPL having larger market caps.

Financial Metrics

GOOGL's PE Ratio is a key metric for relative valuation analysis, and it's calculated by dividing the company's market cap by their current earnings.

Expand your knowledge: Royal Dutch Shell B Dividend Yield

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The PE Ratio for GOOGL is 25.8x, which is a significant multiple. To put this into perspective, the average PE Ratio for the industry is usually around 15-20x.

The Enterprise Value/Revenue ratio for GOOGL is 7.9x, indicating that the company's value is 7.9 times its revenue. This ratio can be useful for comparing GOOGL's valuation to its peers.

Here are some key financial metrics for GOOGL:

In comparison, JOYY's PE Ratio is significantly lower at 1.7x, indicating that the company is undervalued. However, JOYY's estimated growth is -82.02%, which is a major red flag.

Google Stock Charts and Data

Google Stock Charts and Data is a valuable tool for investors and analysts.

Google Finance provides free stock charts that update in real-time, allowing users to track the performance of GOOG.

These charts can be customized to display various types of data, including moving averages and RSI indicators.

To access Google's stock charts, simply visit the Google Finance website and enter the ticker symbol "GOOG".

Average Chart

Credit: youtube.com, How To Read Stock Charts: Moving Averages

Google's price to earnings ratio is currently 7% below its 10-year historical average.

The 3-year average PE ratio for Alphabet (GOOGL) is 22.05, while the 5-year average PE ratio is 23.57, and the 10-year average PE ratio is 26.01.

Here's a comparison of Alphabet's PE ratio to its peers: Stock NamePE RatioMarket CapEBAY Ebay Inc19.81$41.65BADBE Adobe Inc22.41$150.85BGOOGL Alphabet Inc26.01$2.98TAAPL Apple Inc38.65$3.79TMSFT Microsoft Corp37.33$3.8T

Alphabet's PE ratio is higher than ADBE's and EBAY's, but lower than AAPL's and MSFT's.

GOOGL's Highest Price

The highest price for GOOGL stock was reached in the Dec 2017 quarter, with a price of $1,141.03.

This price milestone is significant, showing the stock's performance over the years.

The highest PE ratio for GOOGL was 57.88, also achieved in the Dec 2017 quarter.

This high PE ratio indicates the stock's value relative to its earnings at that time.

GOOGL's highest price was a notable achievement, reflecting the company's growth and success.

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Frequently Asked Questions

Is Google under or overvalued?

Google is likely overvalued at $150, due to branding and investor irrationality. Its actual worth may be lower than its market price.

Tasha Schumm

Junior Writer

Tasha Schumm is a skilled writer with a passion for simplifying complex topics. With a focus on corporate taxation, business taxes, and related subjects, Tasha has established herself as a knowledgeable and engaging voice in the industry. Her articles cover a range of topics, from in-depth explanations of corporate taxation in the United States to informative lists and definitions of key business terms.

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