Alphabet Inc. (GOOGL)

FairStock Score: 72/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Alphabet as a business first. Its Google Services ecosystem—Search, YouTube, Android, Chrome—and Google Cloud give it habitual user traffic, advertiser scale and data advantages that are hard to replicate. The filed numbers are strong: in fiscal 2025 revenue was $402.8B and net income $132.2B, up from $350.0B and $100.1B in fiscal 2024. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $119.8B, net income $112.2B and diluted EPS $9.11. That reported profit is extraordinary and needs checking for one-time items, but the operating momentum is clear. Financial health looks sturdy. FairStock calculations show ROE 48.68%, ROCE 12.96%, debt-to-equity 0.19 and an Altman Z-score of 9.71, while the Piotroski F-score is a middling 5/9. At the 2026-10-26 close of $316.80, FairStock puts P/E at 15.90, P/B at 6.22, EV/EBITDA at 12.24, FCF yield at 1.4% on $53.3B trailing free cash flow, and PEG at 0.05. The Graham Number is $153.21, so the price is about 109% above that asset/earnings-based yardstick. FairStock classifies it as a FAST GROWER, citing 26.8% annual profit growth and 17.2% revenue growth over five years. My conclusion: a high-quality compounder with a real moat, low leverage and fast growth, but the price is not a Graham bargain. The low FCF yield and reported-profit volatility temper enthusiasm.

In plain English: Alphabet makes money mainly from Google Search, YouTube ads, Android, Chrome and Google Cloud. The business looks strong: sales and reported profits have grown, returns are high, and debt is low compared with the company's size. At the 2026-10-26 close of $316.80, the shares look fair to full versus reported earnings and cash flow, not obviously cheap by older value tests.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer