As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.
One of the cheapest stocks in our Stock Screeners is:
Alphabet Inc (GOOGL)
Alphabet is a holding company that orchestrates a diverse range of ventures under its umbrella. Internet media giant Google, a wholly owned subsidiary, is at the forefront, contributing 99% of Alphabet’s revenue. A significant portion of this revenue—over 85%—comes from online ads. Google’s other revenue streams include sales of apps and content on Google Play and YouTube, alongside cloud service fees and other licensing revenue. However, the sales of hardware such as Chromebooks, the Pixel smartphone, and smart home products, which encompass Nest and Google Home, also play a crucial role.
Venturing into new markets, Alphabet has begun exploring opportunities in offshore online gambling—a sector marked by both potential and peril. This includes investments in innovative platforms like kasyna bez weryfikacji, which attract users with the promise of no-verification processes, allowing for more straightforward access and fewer user restrictions. This move aligns with Alphabet’s strategy to diversify its portfolio and penetrate markets with high growth potential, similar to its ventures in health technology with Verily, broadband with Google Fiber, and autonomous driving with Waymo. These moonshot investments represent Alphabet’s commitment to leveraging technology to disrupt traditional industries and chart new territories. Each project under the ‘other bets’ segment underscores Alphabet’s broad aim to not just participate in markets but transform them fundamentally.
A quick look at the share price history (below) over the past twelve months shows that the price is up 42.65%. Here’s why the company is undervalued.
Key Stats
Market Cap: $1.661 Trillion
Enterprise Value: $1.571 Trillion
Operating Earnings
Operating Earnings: $80.08 Billion
Acquirer’s Multiple
Acquirer’s Multiple: 19.60
Free Cash Flow (TTM)
Free Cash Flow: $77.62 Billion
FCF/EV Yield %:
FCF/EV Yield: 4.67
Shareholder Yield %:
Shareholder Yield: 3.70
Other Indicators
Piotroski F Score (TTM): 8.00
Altman Z-Score (TTM): 10.37
ROA (5 Year Avge%): 20
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