Alphabet Stock Price and Value Analysis

Should you buy Alphabet stock? (NasdaqGS:GOOG). Let's see how it does in our automated value investing analysis system.

GOOG Free Cash Flow Trend

Free Cash Flow trendline for GOOG
Free Cash Flow trendline for Alphabet

Based on historical returns, we believe that Alphabet can grow its free cash at a rate of about 1%. That's positive!

AdvantagesDisadvantagesNeutral
  • This company is very stable.
  • This company has wild ups and downs.
  • This company is making money at a modest rate.
  • This stock looks overpriced.
  • This company pays no dividend.

Inside the GOOG Numbers

GOOG Price
(Alphabet stock price per share)
$2108.54
[?] GOOG Fair Price
(based on intrinsic value)
$884.12
[?] GOOG Safety Price (based on a variable margin of safety) $707.30
[?] PE Ratio versus Sector 118% higher than other Technology stocks
[?] PE Ratio versus Industry 98% higher than other Internet Content & Information stocks
[?] Cash Yield 1.08%
[?] Free Cash Flow Jitter 35%

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 2,754,828 shares shorted. With 607,296,015 shares available for purchase and an average trading volume over the past 10 trading days of 1,613,928, it would take at least 1.707 days for all of the short holders to cover their shorts.

Is Alphabet Stock on Sale?

We believe that Alphabet may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Alphabet looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy GOOG Stock?

Does Alphabet have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.