GROWTH
Top line stable.
+15.1% YoY versus +13.9% prior. 3y CAGR +12.5%.
+15.1%
Alphabet Inc. GOOGL
Communications · Market Cap: $4.35T
$368.03▲ 4.24 (1.17%)
Fundamentals as of 2025-12-31
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Communications · Market Cap: $4.35T
Fundamentals as of 2025-12-31
All analysis on this page is for educational purposes only and does not constitute financial advice. Fair values are model-based estimates. Always do your own research.
The Question
1 of 2 legendary models say BUY GOOGL — but Warren Buffett disagrees.
What would legendary investors pay for GOOGL?
These figures are not quotes or opinions from Buffett, Graham, Lynch or the other investors. They are our own estimates, computed by applying the intrinsic-value formulas each investor is known for to this company’s financials.
For educational purposes only. Not a recommendation to buy or sell securities.
Yes — Alphabet Inc.'s 31.8% ROE ranks above the S&P 500 median, and D/E 0.43 stays within healthy bounds.
Financial story
Yes — Alphabet Inc.'s 31.8% ROE shows strong capital efficiency, and its 0.43 debt-to-equity stays within healthy bounds.
Bottom line: GOOGL splits the legendary models — 1 BUY, 0 HOLD, 1 AVOID, but earns a B sector grade (63/100) in Communications. Whether the premium is justified depends on which lens you trust. Drill into the valuation breakdown and sector ranking for the full picture.
+15.1% YoY versus +13.9% prior. 3y CAGR +12.5%.
+15.1%Net margin 32.8% versus 28.6% prior (+4.2pp). Operating 32.1%.
32.8%P/E 28.1x — 12% above the 5y median of 25.0x. Forward 25.9x hints at EPS expansion next year.
28.1xHow does GOOGL compare?
GOOGL's earnings calendar and history are tracked in the financials tab. Specific dates depend on company-published guidance.
GOOGL is in the Communications sector. Sector ranking and peer comparison are in the sector tab.
1 of 2 legendary investor models rate GOOGL a BUY. Fair value estimates and full investor breakdown are in the valuation tab.
Average fair value across qualifying models: $343. See the per-investor fair-value table in the valuation tab.
GOOGL trades at 27.8x earnings. Sector context and per-investor signals are in the valuation tab.
GOOGL and GOOG differ on P/E, ROE, and revenue growth. See the full GOOGL vs GOOG compare matrix.
Strength. Google Cloud +63% at a 33% margin with a >$460B backlog — its TPUs charge a toll on rivals’ AI spend.
Risk. AI threatens Search clicks, and nearly half of net income came from revaluing Anthropic — paper gains, not operations.
See exactly where GOOGL ranks
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Sign in to see the rankingGOOGL sits at #2 in Communications with a B grade (63/100).
The market is repricing backlog quality, not backlog size. Oracle's headline numbers were strong — total cloud revenue around $9.9 billion (up roughly 47%), OCI up about 93%, and a remaining-performance-obligation balance near $638 billion — yet the stock fell roughly 10% the day after the print. That gap between fundamentals and price action is the whole story.
The smoking-gun datapoint: of that ~$638 billion backlog, roughly $300 billion (about 47%) is reportedly tied to a single counterparty, OpenAI, largely through the Stargate buildout. A backlog that concentrated is worth a lower multiple than a diversified one, because the variance of outcomes is wider — one renegotiation, funding gap, or timeline slip moves a disproportionate share of future revenue.
Forward read (1-4 quarters): the bull/bear debate now centers on cash conversion. Oracle spent roughly $55.7 billion in fiscal 2026 and guided to about $70 billion in fiscal 2027. That capex is front-loaded ahead of the revenue it supports, compressing near-term free cash flow and lifting leverage — so even with revenue growth accelerating, the equity can de-rate as investors demand a higher risk premium on the OpenAI exposure.
Counter-narrative: bulls argue the concentration is a feature, not a bug — a multi-year, contractually committed anchor tenant that underwrites the capex and would be hard for any rival cloud to replicate. If OpenAI's compute demand holds, the backlog converts and today's multiple looks cheap in hindsight. The risk is closer to binary, which is exactly why the multiple, not the growth rate, is doing the moving.
