Alphabet Inc.

ticker: NASDAQ:GOOGL

Financial fundamentals

The Communications industry is a gaining traction, and seems to be slightly undervalued.

PE vs Industry: GOOGL is good value based on its PE Ratio (22.4x) compared to the US Interactive Media and Services industry average (30x)

Alphabet has forecasted annual earnings growth 11.2% in the next 1 to 3 years based on estimates from 37 analysts.

GOOGL's current Return on Equity (30.2%) is considered high vs Industry (9.2%)

Returns on capital employed (26.7%) are significantly higher than the costs of capital. Meaning, that every additional growth % creates value for investors, which should be reflected in the future stock price. About half of publicly listed companies fail this test.

Future ROE: GOOGL's Return on Equity is forecast to be high in 3 years time (27.4%) vs Industry (9.2%)

Short Term Liabilities: GOOGL's short term assets ($188.1B) exceed its short term liabilities ($64.3B)

Long Term Liabilities: GOOGL's short term assets ($188.1B) exceed its long term liabilities ($43.4B)

Price estimate

Price target and recommendation from analysts

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Historical price target estimate for reference

historical-price-target

Options overview

Volume for GOOGL expiring 2022-04-22. Learn details with interactive chart.

chart-option-volume

Open Interest for GOOGL expiring 2022-04-22. Learn details with interactive chart.

chart-option-open-interest

Thoughts: judging by volume of call vs put within and their strike prices within 1 week from now until 2022-04-22, we saw that the call strike at 2990 has the highest volume (1525 calls). It may imply that traders are buying more calls than puts. It suggests that they see a bull market ahead.

Technical estimate

price-chart-google-20220413

Thougts: both AVWAP and MACD shows a sign of trend of price moving down


Tags

  1. topic.investment

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