Alphabet Inc (GOOG)
Fun Fact
- Since 2010, Google has been acquiring an average of one company every week.
- Google wanted to sell itself to an online company Excite in 1999 for $1 million, but the Excite CEO rejected the offer.
- Alphabet is a holding company, with Google, the Internet media giant, as a wholly-owned subsidiary. Google generates 99% of Alphabet revenue, of which more than 85% is from online ads.
- GOOG is a component stock of the S&P 500 & Nasdaq 100 index.
Price | USD 1,465.46
Market Capitalization | USD 995B vs Enterprise Value (EV) USD 891B.
Price /Earnings (PE) | 32X. Slightly expensive vs S&P average PE of 29X.
Price /Book (PB) | 4.8X. Expensive vs S&P average PB of 3.7X.
Dividend Yield (DY) | Nil. GOOG does not pay dividends vs average DY of S&P 1.8%.
Net Income | USD 31.5B (+12% YoY).
Net Margin | 18%. This is higher than 81% of the Interactive Media industry.
Interest Coverage | 491X. This is higher than 73% of the Interactive Media industry. Ben Graham requires that a company has interest coverage of 5X or higher.
Analyst Consensus
Target Price | USD 1,770
Call | Buy
Technical Analysis
Long Term Trend | Up. The trendline is intact.
Short Term Trend | Down.
Support Line | USD 1,344 & next support USD 1,103.
Resistance Line | USD 1,734
Stochastic | Currently inside the oversold zone. A U-turn from the current position indicates selling momentum is weakening.
Conclusion
Valuation is slightly expensive but still fine for long term investors.
Short term buyers can closely monitor GOOG & wait for a stochastic U-turn signal.
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