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Alphabet(Google) (GOOGL) PS Ratio

: 6.53 (As of Today)
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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 $155.44. Alphabet(Google)'s Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $23.79. Hence, Alphabet(Google)'s PS Ratio for today is 6.53.

Warning Sign:

Alphabet Inc stock PS Ratio (=6.43) is close to 2-year high of 6.63

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

GOOGL' s PS Ratio Range Over the Past 10 Years
Min: 4.13   Med: 6.33   Max: 8.92
Current: 6.53

During the past 13 years, Alphabet(Google)'s highest PS Ratio was 8.92. The lowest was 4.13. And the median was 6.33.

GOOGL's PS Ratio is ranked worse than
83.83% of 575 companies
in the Interactive Media industry
Industry Median: 1.9 vs GOOGL: 6.53

Alphabet(Google)'s Revenue per Sharefor the three months ended in Dec. 2023 was $6.86. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $23.79.

Good Sign:

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 12.40% 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.

* Premium members only.

Alphabet(Google) Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.78 6.60 7.62 4.10 5.78

Alphabet(Google) Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PS Ratio 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 Premium Member Only Premium Member Only Premium Member Only 4.10 4.82 5.43 5.73 5.78

Competitive Comparison

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) PS Ratio Distribution

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 PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=155.44/23.792
=6.53

Alphabet(Google)'s Share Price of today is $155.44.
Alphabet(Google)'s Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $23.79.

* 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:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


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

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.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

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

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Alphabet(Google) (GOOGL) Business Description

Address
1600 Amphitheatre Parkway, Mountain View, CA, USA, 94043
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.
Executives
R. Martin Chavez director C/O GOLDMAN SACHS & CO. LLC, 200 WEST STREET, NEW YORK NY 10282
Prabhakar Raghavan officer: Senior Vice President C/O ALPHABET INC.,, 1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94043
Philipp Schindler officer: SVP, Chief Business Officer C/O ALPHABET INC., 1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94568
John Kent Walker officer: SVP, Global Affairs and CLO 1600 AMPHITHEATRE PRKW, MOUNTAIN VIEW CA 94043
Frances Arnold director 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Robin L Washington director 333 LAKESIDE DRIVE, FOSTER CITY CA 94404
Amie Thuener O'toole officer: VP, Chief Accounting Officer C/O ALPHABET INC., 1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94043
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
John L Hennessy director
Kavitark Ram Shriram director 1600 AMPHITHEATRE PARKWAY, MOUNTAIN VIEW CA 94043
Alan R Mulally director P.O. BOX 995, MERCER ISLAND WA 98040
Ann Mather director
Shirley M Tilghman director GOOGLE INC., 1600 AMPHITHEATRE PARKWAY, MOUNTAIN VIEW CA 94043

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