The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Alphabet(Google)'s share price is $194.84.
Alphabet(Google)'s Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was $26.75. Hence, Alphabet(Google)'s PS Ratio for today is 7.28.
Warning Sign:
Alphabet Inc stock PS Ratio (=6.92) is close to 2-year high of 7.42
The historical rank and industry rank for Alphabet(Google)'s PS Ratio or its related term are showing as below:
GOOG'
s PS Ratio Range Over the Past 10 Years
Min: 4.13 Med: 6.35 Max: 8.92
Current: 7.23
During the past 13 years, Alphabet(Google)'s highest PS Ratio was 8.92. The lowest was 4.13. And the median was 6.35.
GOOG's PS Ratio is ranked worse than 83.63% of 562
companies
in the Interactive Media industry
Industry Median: 1.725
vs GOOG: 7.23
Alphabet Inc has shown predictable revenue and earnings growth.
During the past 12 months, the average Revenue per Share Growth Rate of Alphabet(Google) was 17.00% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 22.10% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 21.30% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 20.50% per year.
During the past 13 years, Alphabet(Google)'s highest 3-Year average Revenue per Share Growth Rate was 265.10% per year. The lowest was 16.00% per year. And the median was 21.95% per year.
Back to Basics: PS Ratio
Alphabet(Google) PS Ratio Historical Data
The historical data trend for Alphabet(Google)'s PS 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.
Competitive Comparison of Alphabet(Google)'s PS Ratio
For the Internet Content & Information subindustry, Alphabet(Google)'s PS Ratio, along with its competitors' market caps and PS 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 PS Ratio Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Alphabet(Google)'s PS Ratio distribution charts can be found below:
* The bar in red indicates where Alphabet(Google)'s PS Ratio falls into.
Alphabet(Google) PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Alphabet(Google)'s Share Price of today is $194.84. Alphabet(Google)'s Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $26.75.
* 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.
It can also be calculated from the numbers for the whole company:
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Alphabet(Google) PS Ratio Related Terms
Thank you for viewing the detailed overview of Alphabet(Google)'s PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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