We are maintaining our $161 fair value estimate on Alphabet, as we do not expect the latest events around OpenAI and Microsoft to significantly affect Google's artificial intelligence capabilities in the short or long term.
As the number of online users and usage increase, so will digital ad spending, of which Google will remain one of the main beneficiaries.
There is little revenue diversification within Alphabet, as it remains heavily dependent on Google and the state of the search ad space.
|
Metric
|
GOOGL
|
AAPL
|
AMZN
|
|---|---|---|---|
Price/Earnings (Normalized) | 24.34 | 31.25 | 72.09 |
Price/Book Value | 6.05 | 47.85 | 8.30 |
Price/Sales | 5.68 | 7.89 | 2.76 |
Price/Cash Flow | 16.93 | 25.82 | 17.74 |
|
Metric
|
GOOGL
|
AAPL
|
AMZN
|
|---|---|---|---|
Quick Ratio | 1.87 | 0.84 | 0.70 |
Current Ratio | 2.04 | 0.99 | 0.98 |
Interest Coverage | 229.08 | 28.96 | 7.45 |
|
Metric
|
GOOGL
|
AAPL
|
AMZN
|
|---|---|---|---|
Return on Assets (Normalized) | 23.46% | 30.90% | 9.11% |
Return on Equity (Normalized) | 33.51% | 181.92% | 26.76% |
Return on Invested Capital (Normalized) | 29.26% | 62.35% | 14.52% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|
GOOG
| Alphabet Inc Class C | Rbtvh | $1.7 Tril | |
META
| Meta Platforms Inc Class A | Vkm | $834.7 Bil | |
TCEHY
| Tencent Holdings Ltd ADR | Dysmt | $388.1 Bil | |
BIDU
| Baidu Inc ADR | Rqm | $41.2 Bil | |
DASH
| DoorDash Inc Ordinary Shares - Class A | Pjvvnq | $38.5 Bil | |
SPOT
| Spotify Technology SA | Dxc | $35.3 Bil | |
PINS
| Pinterest Inc Class A | Cdqmk | $23.5 Bil | |
SNAP
| Snap Inc Class A | Rbs | $23.3 Bil | |
TME
| Tencent Music Entertainment Group ADR | Vgxbwbp | $14.0 Bil |
