Why Alphabet Inc Is A Buy? Acquirer’s Multiple Stock Screener Analysis

Johnny HopkinsStock ScreenerLeave a Comment

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. Internet media giant Google is a wholly owned subsidiary. Google generates 99% of Alphabet revenue, of which more than 85% is from online ads. Google’s other revenue is from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue. Sales of hardware such as Chromebooks, the Pixel smartphone, and smart home products, which include Nest and Google Home, also contribute to other revenue. Alphabet’s moonshot investments are in its other bets segment, where it bets on technology to enhance health (Verily), provide faster internet access (Google Fiber), enable self-driving cars (Waymo), and more.

A quick look at the share price history (below) over the past twelve months shows that the price is up 49.01%. Here’s why the company is undervalued.


GOOGL data by YCharts

Key Stats

Market Cap: $1.86 Trillion

Enterprise Value: $1.77 Trillion

Operating Earnings

Operating Earnings: $80.08 Billion

Acquirer’s Multiple

Acquirer’s Multiple: 22.20

Free Cash Flow (TTM)

Free Cash Flow: $77.62 Billion

FCF/EV Yield %:

FCF/EV Yield: 4.16

Shareholder Yield %:

Shareholder Yield: 3.30

Other Indicators

Piotroski F Score: 8.00

Altman Z-Score (TTM): 10.37

ROA (5 Year Avge%): 20

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