Key Takeaways
- Quality: operating margin is 31.8% and ROE 44.3%, but free cash flow of -$1.2B sits far below the roughly $236B of implied net income.
- Growth: TTM revenue is up 24.7% against a 12.5% five-year CAGR, while TTM earnings growth is -25.3%.
- Opportunity: a 14.94 P/E looks low, but a 50.0% net margin above the 31.8% operating margin may flatter it, giving an Opportunity score of 33 out of 100.
Alphabet Inc. trades at $286.10, in the middle of a two-year range of $145.60 to $400.80, with a market cap of $3517.25B. This Alphabet Inc. stock analysis starts with an unusual set of figures: a 50.0% net profit margin and a P/E of 14.94 sit next to negative trailing free cash flow and falling earnings. The model signal is Hold.
What Is Happening With the Stock Price
The shares are mid-range, a little above the halfway point between the two-year low and high, and about 29% below the top of the range. Investors have clearly not been willing to pay peak prices, even as revenue grows at a double-digit pace. A mid-range position says sentiment is neither washed out nor euphoric.
Quality: Is This a Financially Sound Business?
Operating quality is high. Gross margin is 60.9%, operating margin is 31.8%, return on assets is 12.7% and return on equity is 44.3%. The balance sheet is conservative: debt-to-equity is 0.22, the current ratio is 2.79 and the quick ratio is 2.51.
Two figures need care. First, the net profit margin of 50.0% is well above the 31.8% operating margin, which points to non-operating gains, such as the revaluation of investments, that flatter net income, EPS of $19.15, the P/E and ROE. Second, free cash flow over the trailing twelve months is -$1.2B, while net income implied by the margin on $471.1B of revenue is roughly $236B. Earnings are therefore not backed by free cash flow in this data, and heavy capital spending is a plausible reason, though the metrics do not show the cause. This Alphabet Inc. stock analysis treats that gap as a key finding. The Quality score is 75 out of 100.
Growth: Does This Company Have Real Upside?
Trailing-twelve-month revenue growth is 24.7%, ahead of the five-year CAGR of 12.5%, so growth has accelerated. Earnings growth is -25.3% over the trailing twelve months, which is consistent with a prior-period profit base inflated by one-off gains, though the data does not confirm that. EV/Revenue is 7.31. The Growth score is 58 out of 100.
Opportunity: Is Now a Good Time to Enter?
A P/E of 14.94 looks cheap for a company of this scale, but because net income appears boosted by non-operating items, the figure may overstate the bargain. EV/EBITDA of 18.57 and price-to-book of 5.33 give a fuller picture, and the FCF yield is about zero. With the price mid-range, there is no strong momentum or contrarian signal. The Opportunity score is 33 out of 100.
Alphabet Inc. Stock Analysis: The Bottom Line
The bull case is a very profitable, lightly indebted business with 24.7% revenue growth and a low headline P/E. The bear case is negative free cash flow, falling earnings and a net margin that probably includes gains unlikely to repeat, plus the risk that heavy investment fails to pay off. Combining Quality 75, Growth 58 and Opportunity 33 gives a Recommendation Score of 55 out of 100 and a Hold signal. This is the output of StreetBriefs’ quantitative scoring model, a data-driven signal for further research, not a personalized recommendation to transact. Readers may want to watch whether free cash flow recovers.
Financial Metrics Summary
| Metric | Value |
|---|---|
| Price & Valuation | |
| Current Price | $286.10 |
| 2-Year Low | $145.60 |
| 2-Year High | $400.80 |
| Market Cap | $3517.25B |
| P/E Ratio | 14.94 |
| EV / Revenue | 7.31 |
| Our Scores | |
| Quality Score | 75 / 100 |
| Growth Score | 58 / 100 |
| Opportunity Score | 33 / 100 |
| Profitability | |
| Earnings Per Share | $19.15 |
| Return on Assets | 12.7% |
| Return on Equity | 44.3% |
| Net Profit Margin | 50.0% |
| Gross Margin | 60.9% |
| Operating Margin | 31.8% |
| Growth | |
| Revenue Growth (5Y CAGR) | 12.5% |
| Revenue Growth (TTM) | 24.7% |
| Earnings Growth (TTM) | -25.3% |
| Balance Sheet | |
| Debt-to-Equity | 0.22 |
| Current Ratio | 2.79 |
| Quick Ratio | 2.51 |
| Income & Dividends | |
| Dividend Yield | 0.3% |
| Payout Ratio | 4.5% |
Data as of November 11, 2026
Our Three-Pillar Assessment
| Quality |
75/100 |
| Growth |
58/100 |
| Opportunity |
33/100 |
Quality measures business fundamentals: profitability, cash flow discipline, and balance sheet strength.
Growth captures revenue momentum, gross margin scalability, and the Rule of 40 efficiency test.
Opportunity signals entry timing: current valuation versus history and price position in the 2-year range.
Current price: $286.10 trading 29% below its 2-year high of $400.80.
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This analysis is done using financial data from Yahoo Finance.
Always conduct your own due diligence and consult a qualified financial advisor before making investment decisions.
