GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Alphabet Inc(Google) (NAS:GOOGL) » Definitions » PEG Ratio

Google (GOOGL) PEG Ratio : 1.25 (As of Dec. 11, 2024)


View and export this data going back to 2004. Start your Free Trial

What is Alphabet(Google) PEG Ratio?

PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Alphabet(Google)'s PE Ratio without NRI is 26.44. Alphabet(Google)'s 5-Year EBITDA growth rate is 21.10%. Therefore, Alphabet(Google)'s PEG Ratio for today is 1.25.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


The historical rank and industry rank for Alphabet(Google)'s PEG Ratio or its related term are showing as below:

GOOGL' s PEG Ratio Range Over the Past 10 Years
Min: 0.59   Med: 1.54   Max: 2.61
Current: 1.25


During the past 13 years, Alphabet(Google)'s highest PEG Ratio was 2.61. The lowest was 0.59. And the median was 1.54.


GOOGL's PEG Ratio is ranked better than
53.91% of 115 companies
in the Interactive Media industry
Industry Median: 1.3 vs GOOGL: 1.25

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Alphabet(Google) PEG Ratio Historical Data

The historical data trend for Alphabet(Google)'s PEG 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.

* Premium members only.

Alphabet(Google) PEG Ratio Chart

Alphabet(Google) Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PEG Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.48 1.79 1.13 0.66 1.09

Alphabet(Google) Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
PEG Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.07 1.09 1.09 1.28 1.10

Competitive Comparison of Alphabet(Google)'s PEG Ratio

For the Internet Content & Information subindustry, Alphabet(Google)'s PEG Ratio, along with its competitors' market caps and PEG 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)'s PEG Ratio Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Alphabet(Google)'s PEG Ratio distribution charts can be found below:

* The bar in red indicates where Alphabet(Google)'s PEG Ratio falls into.



Alphabet(Google) PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Alphabet(Google)'s PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=26.437559193614/21.10
=1.25

* 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.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


Alphabet(Google)  (NAS:GOOGL) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Alphabet(Google) PEG Ratio Related Terms

Thank you for viewing the detailed overview of Alphabet(Google)'s PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Alphabet(Google) Business Description

Address
1600 Amphitheatre Parkway, Mountain View, CA, USA, 94043
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, 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, or GCP, accounts for roughly 10% of Alphabet's revenue with the firm's investments in up-and-coming technologies such as self-driving cars (Waymo), health (Verily), and internet access (Google Fiber) making up the rest.
Executives
Amie Thuener O'toole officer: VP, Chief Accounting Officer C/O ALPHABET INC., 1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94043
Frances Arnold director 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Sundar Pichai officer: CEO, Google Inc. GOOGLE INC., 1600 AMPHITHEATRE PARKWAY, MOUNTAIN VIEW CA 94043
John L Hennessy director
Kavitark Ram Shriram director 1600 AMPHITHEATRE PARKWAY, MOUNTAIN VIEW CA 94043
John Kent Walker officer: SVP, Global Affairs and CLO 1600 AMPHITHEATRE PRKW, MOUNTAIN VIEW CA 94043
Prabhakar Raghavan officer: Senior Vice President C/O ALPHABET INC.,, 1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94043
R. Martin Chavez director C/O GOLDMAN SACHS & CO. LLC, 200 WEST STREET, NEW YORK NY 10282
Philipp Schindler officer: SVP, Chief Business Officer C/O ALPHABET INC., 1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94568
Robin L Washington director 333 LAKESIDE DRIVE, FOSTER CITY CA 94404
Antonio Lee 10 percent owner, other: Investor/Large Shareholder 4009 216TH STREET, MATTESON IL 60443
Ferguson Roger W. Jr. director CORNING INCORPORATED, ONE RIVERFRONT PLAZA, CORNING NY 14831
James Grier Campbell officer: VP, Alphabet Corp. Controller 1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94043
Alan R Mulally director P.O. BOX 995, MERCER ISLAND WA 98040
Ann Mather director