Monday, March 7, 2022

Alphabet revenue and stock price

Alphabet's trends in revenue and stock price are plotted below.  Since Alphabet continues to be a high growth company, it makes sense that its stock price rise rate parallels its revenues rise rate.  A projection of the stock price trendline (see the chart) indicates the stock is maybe 5 to 15% overvalued as of Mar 7th, 2022.

Several other key indicators of this company signal that GOOGL stock may be an excellent investment:

  • PE ratio of 22.7
  • 21% per year revenue growth (average over the last 12 years)
  • gross margin 57%
  • operating margin 30.5%
  • net margin 29.5%
  • last 12 months revenue $257 B
  • cash on hand $139 B
  • long term debt  $15 B





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