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Shiller PE for Stocks: The True Measure of Stock Valuation
Alphabet(Google) (NAS:GOOG) Cyclically Adjusted PB Ratio Explanation
Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.
Alphabet(Google) Cyclically Adjusted PB Ratio Related Terms
Alphabet(Google) Cyclically Adjusted PB Ratio Historical Data
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The historical data trend for Alphabet(Google)'s Cyclically Adjusted PB Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Alphabet(Google) Cyclically Adjusted PB Ratio Chart
GOOG vs META, SPOT, NBIS: Cyclically Adjusted PB Ratio Comparison
For the Internet Content & Information subindustry, Alphabet(Google)'s Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alphabet(Google) Cyclically Adjusted PB Ratio vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Alphabet(Google)'s Cyclically Adjusted PB Ratio distribution charts can be found below:
* The bar in red indicates where Alphabet(Google)'s Cyclically Adjusted PB Ratio falls into.
Alphabet(Google) Cyclically Adjusted PB Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
Is Alphabet(Google) (GOOG) Overvalued in 2026?
Based on GuruFocus' analysis, Alphabet(Google) stock appears to be overvalued.
The current stock price of $318.34 is trading 34.8% above its estimated GF Value™ of $236.23.
GuruFocus considers Alphabet(Google) to be Significantly Overvalued.
Key valuation signals for GOOG:
Cyclically Adjusted PB Ratio:
GF Value™: $236.23 vs. price of $318.34 (34.8% above fair value)
No single metric tells the full story. See the GOOG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alphabet is a holding company that wholly owns internet giant Google. The California-based company derives slightly less than 90% of its revenue from Google services, the vast majority of which is advertising sales. Alongside online ads, Google services houses sales stemming from Google's subscription services (YouTube TV and YouTube Music, among others), platforms (sales and in-app purchases on Play Store), and devices (Chromebooks, Pixel smartphones, and smart home products such as Chromecast). Google's cloud computing platform accounts for roughly 10% of Alphabet's revenue. The firm's investments in up-and-coming technologies such as self-driving cars (Waymo), health (Verily), and internet access (Google Fiber) make up the rest.
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Cyclically Adjusted PB Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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