Explain this page
Arphra AIPlain-English read on Alphabet Inc.’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | — | $3.79T | — | — | — | — |
| Enterprise value | — | — | — | — | $3.82T | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | — | 9.48 | — | — | — | — |
| EV / FCF | — | — | — | — | 52.15 | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | — | +3.49% | — | — | — | — |
| Free cash flow yield | — | — | — | — | +1.93% | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +56.94% | +55.38% | +56.63% | +58.20% | +59.67% | +58.09% | +58.56% | +59.32% | +58.40% |
| Operating margin | +30.55% | +26.46% | +27.42% | +32.11% | +32.05% | +30.45% | +31.10% | +30.06% | +29.95% |
| EBITDA margin | +40.18% | +30.11% | +31.87% | +38.68% | +44.66% | +38.19% | +37.60% | +39.38% | +37.71% |
| EBIT margin | +35.35% | +25.35% | +27.99% | +34.31% | +39.41% | +33.53% | +34.15% | +34.33% | +33.90% |
| Pre-tax margin | +35.22% | +25.22% | +27.89% | +34.23% | +39.41% | +34.15% | +33.98% | +33.84% | +33.09% |
| Net margin | +29.51% | +21.20% | +24.01% | +28.60% | +32.80% | +27.90% | +28.62% | +28.87% | +27.99% |
| Cost structure | |||||||||
| Cost of revenue / sales | +43.06% | +44.62% | +43.37% | +41.80% | +40.33% | +41.29% | +41.68% | +42.58% | +41.30% |
| R&D intensity | +12.25% | +13.97% | +14.78% | +14.09% | +15.16% | +14.70% | +15.03% | +14.82% | +14.80% |
| SG&A intensity | +14.14% | +14.95% | +14.43% | +12.00% | +12.45% | +12.61% | +12.98% | +12.73% | +12.85% |
| Effective tax rate | +16.20% | +15.92% | +13.91% | +16.44% | +16.78% | +15.68% | +15.98% | +15.71% | +16.00% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +30.22% | +23.41% | +26.04% | +30.80% | +31.83% | +29.26% | +30.66% | +30.89% | +29.01% |
| Return on assets (ROA) | +21.16% | +16.42% | +18.34% | +22.24% | +22.20% | +20.74% | +21.50% | +21.74% | +21.05% |
| Return on capital (ROC) | +28.11% | +26.18% | +27.15% | +32.06% | +27.22% | +28.83% | +30.00% | +28.92% | +27.98% |
| Return on invested capital (ROIC) | +27.15% | +20.98% | +23.77% | +28.56% | +27.85% | +26.42% | +27.61% | +27.77% | +26.15% |
| Asset turnover | +71.71% | +77.43% | +76.39% | +77.74% | +67.69% | +74.33% | +75.11% | +75.31% | +75.19% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +29.51% | +21.20% | +24.01% | +28.60% | +32.80% | +27.90% | +28.62% | +28.87% | +27.99% |
| Asset turnover (× revenue / assets) | +71.71% | +77.43% | +76.39% | +77.74% | +67.69% | +74.33% | +75.11% | +75.31% | +75.19% |
| Equity multiplier (× assets / equity) | +142.77% | +142.60% | +142.00% | +138.50% | +143.35% | +141.08% | +142.61% | +142.08% | +137.81% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.72 | 0.77 | 0.76 | 0.78 | 0.68 | 0.74 | 0.75 | 0.75 | 0.75 |
| Fixed-asset turnover | 2.33 | 2.23 | 2.07 | 1.90 | 1.54 | — | — | — | — |
| Inventory turnover | 94.82 | 47.27 | — | — | — | — | — | — | — |
| Receivables turnover | 6.55 | 7.03 | 6.41 | 6.69 | 6.41 | — | — | — | — |
| Payables turnover | 18.38 | 24.61 | 17.79 | 18.32 | 13.32 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 55.68 | 51.95 | 56.95 | 54.58 | 56.96 | — | — | — | — |
| Days inventory outstanding (DIO) | 3.85 | 7.72 | — | — | — | — | — | — | — |
| Days payables outstanding (DPO) | 19.86 | 14.83 | 20.51 | 19.93 | 27.40 | — | — | — | — |
| Cash conversion cycle | 39.67 | 44.84 | 36.44 | 34.65 | 29.56 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.21 | 1.53 | 1.38 | 1.25 | 1.25 | 1.34 | 1.27 | 1.30 | 1.33 |
| FCF / Net income | 0.88 | 1.00 | 0.94 | 0.73 | 0.55 | 0.74 | 0.70 | 0.70 | 0.73 |
| FCF margin | +26.01% | +21.22% | +22.61% | +20.79% | +18.18% | +20.61% | +20.08% | +20.18% | +20.40% |
| OCF margin | +35.57% | +32.35% | +33.10% | +35.80% | +40.88% | +37.42% | +36.38% | +37.46% | +37.15% |
| CapEx / Revenue | +9.56% | +11.13% | +10.49% | +15.01% | +22.69% | +15.66% | +16.32% | +16.34% | +16.15% |
| CapEx / D&A | 1.98 | 1.98 | 2.70 | 3.43 | 4.33 | — | — | — | — |
| Stock-based comp / Revenue | +5.97% | +6.85% | +7.31% | +6.51% | +6.19% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 5.61 | 4.56 | 5.80 | 8.04 | 10.81 | 14.22 | 14.71 | 17.22 | 19.95 |
| EPS · basic | 5.69 | 4.59 | 5.84 | 8.13 | 10.91 | 14.29 | 14.96 | 17.57 | 20.22 |
| Book value / share | 18.57 | 19.47 | 22.27 | 26.12 | 33.95 | 38.09 | 44.05 | 52.41 | 61.69 |
| Tangible BV / share | 16.77 | 17.11 | 19.98 | 23.56 | 31.23 | 38.09 | 44.05 | 52.41 | 61.69 |
| Sales / share | 19.01 | 21.49 | 24.16 | 28.12 | 32.95 | 39.94 | 47.19 | 56.08 | 63.92 |
| Operating CF / share | 6.76 | 6.95 | 8.00 | 10.07 | 13.47 | 14.94 | 17.17 | 21.01 | 23.75 |
| Free cash flow / share | 4.94 | 4.56 | 5.46 | 5.85 | 5.99 | 8.23 | 9.48 | 11.32 | 13.04 |
| Dividends / share | 0.00 | 0.00 | 0.00 | 0.59 | 0.82 | 0.63 | 0.70 | 0.84 | 0.96 |
| Payout ratio | 0.00% | 0.00% | 0.00% | +7.35% | +7.60% | +5.65% | +5.22% | +5.17% | +5.38% |
| Retention ratio | +100.00% | +100.00% | +100.00% | +92.65% | +92.40% | +94.35% | +94.78% | +94.83% | +94.62% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +9.78% | +8.68% | +13.87% | +15.13% | +20.72% | +19.17% | +17.59% | +14.26% | +14.83% |
| Gross profit · YoY | — | +6.77% | +11.13% | +17.03% | +18.02% | +17.54% | +20.13% | +19.11% | +12.50% | +15.19% |
| Profit | ||||||||||
| Operating income · YoY | — | -4.92% | +12.63% | +33.33% | +14.93% | +14.68% | +21.71% | +13.66% | +13.84% | +14.55% |
| EBITDA · YoY | — | -17.74% | +15.04% | +38.20% | +32.92% | +3.24% | +17.33% | +23.14% | +9.43% | +13.92% |
| Net income · YoY | — | -21.12% | +23.05% | +35.67% | +32.01% | +2.68% | +22.27% | +18.61% | +10.77% | +14.07% |
| Operating | ||||||||||
| EBIT · YoY | — | -21.29% | +20.00% | +39.59% | +32.26% | +2.69% | +21.40% | +18.18% | +12.84% | +14.23% |
| R&D · YoY | — | +25.15% | +15.01% | +8.58% | +23.84% | +17.07% | +21.86% | +15.89% | +14.12% | +17.57% |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | -18.72% | +27.19% | +38.62% | +34.45% | +31.53% | +3.46% | +17.07% | +15.82% | +17.18% |
| EPS · basic · YoY | — | -19.33% | +27.23% | +39.21% | +34.19% | +31.01% | +4.66% | +17.47% | +15.09% | +17.18% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $28.4B | $29.68B | $27.12B | $25.46B | $59.29B | $49.87B | $59.83B | $71.63B | $82.12B |
| Net debt | $7.45B | $7.8B | $3.07B | $2B | $28.58B | $14.06B | $16.51B | $20.3B | $24.07B |
| Net debt / EBITDA | 0.07 | 0.09 | 0.03 | 0.01 | 0.16 | 0.08 | 0.08 | 0.08 | 0.08 |
| Debt / equity | 0.11 | 0.12 | 0.10 | 0.08 | 0.14 | 0.11 | 0.11 | 0.11 | 0.11 |
| Debt / assets | +7.90% | +8.13% | +6.74% | +5.65% | +9.96% | +7.62% | +7.75% | +7.91% | +7.93% |
| Equity / assets | +70.04% | +70.13% | +70.42% | +72.20% | +69.76% | +70.88% | +70.12% | +70.38% | +72.57% |
| Coverage | |||||||||
| EBITDA / interest expense | 299.19 | 238.54 | 318.09 | 505.20 | 1258.48 | 554.03 | 517.64 | 546.06 | 534.48 |
| Operating income / interest | 227.50 | 209.64 | 273.68 | 419.37 | 903.26 | 441.72 | 428.12 | 416.87 | 424.46 |
| Interest expense | $346M | $357M | $308M | $268M | $143M | $335.34M | $421.11M | $491.56M | $549.59M |
| Liquidity | |||||||||
| Current ratio | 2.93 | 2.38 | 2.10 | 1.84 | 2.01 | — | — | — | — |
| Quick ratio | 2.79 | 2.22 | 1.94 | 1.66 | 1.85 | — | — | — | — |
| Cash ratio | 0.33 | 0.32 | 0.29 | 0.26 | 0.30 | — | — | — | — |
| Working capital | $123.89B | $95.5B | $89.72B | $74.59B | $103.29B | — | — | — | — |
| Working capital / revenue | +48.09% | +33.76% | +29.19% | +21.31% | +25.63% | — | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 |
|---|---|
| P / E | — |
| P / B | — |
| EV / EBITDA | — |
| EV / Sales | 9.48x |
| Earnings yield | 3.5% |
| FCF yield | 1.9% |
Returns
| Metric | FY 2025 |
|---|---|
| Gross margin | — |
| Operating margin | — |
| Net margin | — |
| ROE | 31.8% |
| ROA | 22.2% |
| ROIC | 21.8% |
Leverage & liquidity
| Metric | FY 2025 |
|---|---|
| Debt / equity | — |
| Net debt / EBITDA | 0.16 |
| Interest coverage | — |
| Current ratio | 2.01x |
| Quick ratio | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).