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Is Alphabet Inc. (GOOGL) Undervalued? Valuation & Fair Price

At $349.39, the frameworks are split on Alphabet Inc. today — Warren Buffett and Phil Town (Rule #1) rate it Avoid and Benjamin Graham and Peter Lynch rate it Hold. Each model calculates its own fair value and margin of safety; create a free account to see the exact buy price behind every verdict.

GO

Alphabet Inc.

GOOGL

Communication Services · Internet Content & Information · NASDAQ

$349.39

P/E 26.8×

CEO

Sundar Pichai

Sector

Communication Services

Industry

Internet Content & Information

Alphabet Inc. provides a diverse range of products and digital platforms to consumers across multiple global regions, including North and South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company's operations are organized into three primary divisions: Google Services, Google Cloud, and "Other Bets." The Google Services segment delivers core offerings such as its advertising solutions, the Android operating system, the Chrome browser, and various hardware. It also features popular applications like Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. This division further handles the sale of applications, in-app purchases, and digital content via the Google Play store, alongside marketing devices such as Fitbit wearables, Google Nest smart home products, Pixel smartphones, and other proprietary hardware. It also provides non-advertising services for YouTube. The Google Cloud segment offers a comprehensive suite of infrastructure, platform, and other cloud computing services for businesses. This includes Google Workspace, a collection of cloud-native collaboration tools for enterprises, featuring applications like Gmail, Docs, Drive, Calendar, and Meet, among other specialized services for corporate clients. Lastly, the "Other Bets" segment is engaged in developing and selling health technology and internet services. Established in 1998, Alphabet Inc. maintains its principal executive offices in Mountain View, California.

The Value RailOvervalued· -21% downside
1 of 4 fair values are above today's price of $349.
$92
$240
$273
$501
← Lower priceHigher price →
BuffettGrahamLynchPhil Town

Investor scorecard

How the four investors rate Alphabet Inc.

A split decision across the frameworks

Warren Buffett
78%Avoid
Benjamin Graham
71%Hold
Peter Lynch
89%Hold
Phil Town (Rule #1)
91%Avoid

Investor model analysis

At $349.39, 2 of 4 frameworks say Avoid

Business Quality82/100

Investor Valuation

Intrinsic Value (DCF)

Warren Buffett's valuation model · select an investor above to switch

Decent fundamentals but some concerns. Investigate the failing criteria.

Intrinsic Value (DCF)

Intrinsic Value (DCF): locked — create a free account to view

Buy Below

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Strong Buy Below

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Margin of Safety

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Insider & congress activity

Are insiders buying GOOGL?

Over recent SEC Form 4 filings, GOOGL insiders bought $0 and sold $4.4M of stock across 12 open-market trades. Insiders sell for many reasons, but they buy for one.

Bought $0Sold $4.4M
Recent open-market insider trades for GOOGL
InsiderActionSharesValueDate
HENNESSY JOHN LdirectorSell519$92KJun 12, 2024
HENNESSY JOHN LdirectorSell176$31KJun 12, 2024
HENNESSY JOHN LdirectorSell130$23KJun 12, 2024
HENNESSY JOHN LdirectorSell11$2KJun 12, 2024
HENNESSY JOHN LdirectorSell32$6KJun 12, 2024

Members of Congress have also reported 50 trades in GOOGL. See the full insider & congress timeline.

Source: SEC Form 4 filings. Open-market buys & sells only. Not investment advice.

See the interactive insider chart & every trade

Market expectations

What the market is pricing in

The yearly growth rate today's price already assumes — and what that means for a buyer

/yr

Implied FCF growth

High expectations, high risk

The market expects near-perfect execution

What this means for you

The price assumes almost everything goes right — little cushion if Alphabet Inc. stumbles.

This is the yearly growth today's price already assumes if it holds for 10 years, then levels off to a steady 3% — the standard long-term DCF horizon.

The exact growth bar for Alphabet Inc. — and how it compares to history — is locked.

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Scenario analysis

Bear, base & bull

Three growth assumptions, three fair values — and where today's price lands

Checklist highlights

Buffett model checklist

Top criteria from the Buffett analysis — select an investor below for all models

Return on Equity

ROE measures how efficiently the company uses shareholder equity. Buffett looks for consistent ROE above 15%, indicating a durable competitive advantage.

ROE Consistency

Consistent high ROE over many years suggests a durable moat. Buffett demands durability — at most one weak year is acceptable.

ROE Quality (Low Leverage)

Buffett prefers high ROE generated by business quality, not financial leverage.

Debt Levels

Buffett prefers companies that could pay off all debt within 3-4 years of free cash flow. Uses 3-year average FCF to smooth one-off fluctuations.

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Sell signals & exit criteria

Know when to exit — sell triggers tracked across all 4 models

Full checklist & risk analysis across all 4 models — free account

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Company financials

5-Year Financials

Income statement highlights — annual, USD

Metric20252024202320222021
Revenue$402.8B
$350.0B
$307.4B
$282.8B
$257.6B
Rev. Growth+15.1%+13.9%+8.7%+9.8%
Net Income$132.2B$100.1B$73.8B$60.0B$76.0B
Net Margin32.8%28.6%24.0%21.2%29.5%
EPS (Diluted)$10.91$8.13$5.84$4.59$5.69
Free Cash FlowLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to view

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Educational Use Only · Not Financial Advice

Analysis, scores, valuations, and buy zones are derived from publicly documented investor frameworks (Buffett, Lynch, Benjamin Graham, Phil Town) for learning purposes only. They are not recommendations from licensed financial advisors. Past performance does not guarantee future results. Prices may be delayed up to 15 minutes. Always conduct your own research before making any investment decisions.