Alphabet(Google)XSWX:GOOGL 85 3-Year ROIIC % is 24.24 as of Dec. 2025, which is 6% below its 10-year median of 25.78. GuruFocus rates XSWX:GOOGL with a GF Score™ of 85/100 and a GF Value™ of CHF188.64 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 529 Interactive Media companies, Alphabet(Google) ranks better than 66.16% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Alphabet(Google)'s 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 24.24%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Alphabet(Google)'s 3-Year ROIIC % or its related term are showing as below:
XSWX:GOOGL's 3-Year ROIIC % is ranked better than 66.16% of 529
companies
in the Interactive Media industry
Industry Median: 3.45
vs XSWX:GOOGL: 24.24
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Alphabet(Google) 3-Year ROIIC % Related Terms
Alphabet(Google) 3-Year ROIIC % Historical Data
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The historical data trend for Alphabet(Google)'s 3-Year ROIIC % 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.
XSWX:GOOGL vs META, SPOT, NBIS: 3-Year ROIIC % Comparison
For the Internet Content & Information subindustry, Alphabet(Google)'s 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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) 3-Year ROIIC % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Alphabet(Google)'s 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Alphabet(Google)'s 3-Year ROIIC % falls into.
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Alphabet(Google) (XSWX:GOOGL) has a 3-Year ROIIC % of 24.24 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Alphabet(Google) and its competitors. This is near median its historical median of 25.78. Over the past decade, Alphabet(Google)'s 3-Year ROIIC % has ranged from 1.74 to 42.93. According to the industry distribution chart, Alphabet(Google) ranks #179 out of 529 companies in the Interactive Media industry, placing it in the top 33.8%.
Is Alphabet(Google)'s 3-Year ROIIC % too high?
Alphabet(Google)'s current 3-Year ROIIC % of 24.24 is near median its 10-year median of 25.78. Over the past 10 years, this metric has ranged from a low of 1.74 to a high of 42.93. The Interactive Media industry median 3-Year ROIIC % is 3.45. Alphabet(Google)'s value of 24.24 is 602.6% above this industry median. Based on the distribution chart, Alphabet(Google) ranks #179 out of 529 companies in the Interactive Media industry, which is above the industry midpoint. Overall, Alphabet(Google) has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Alphabet(Google)'s 3-Year ROIIC % compare to META and SPOT?
According to the Interactive Media industry distribution chart, Alphabet(Google) ranks #179 out of 529 companies for 3-Year ROIIC %. This puts Alphabet(Google) in the upper half of its industry. The industry median 3-Year ROIIC % is 3.45. Alphabet(Google)'s value of 24.24 is 602.6% above this benchmark. Historically, Alphabet(Google)'s own 3-Year ROIIC % has ranged from 1.74 to 42.93 over the past decade. While the company's 10-year median is 25.78 vs. the industry median of 3.45, Alphabet(Google) has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for an Interactive Media company?
The median 3-Year ROIIC % among Interactive Media companies is 3.45, based on 529 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alphabet(Google)'s current 3-Year ROIIC % of 24.24 is 602.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Alphabet(Google) and its competitors. For the Interactive Media industry, the median 3-Year ROIIC % is 3.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alphabet(Google)'s current 3-Year ROIIC % is 24.24, which is near median its own 10-year median of 25.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alphabet(Google) stock overvalued right now?
Based on GuruFocus' analysis, Alphabet(Google) (XSWX:GOOGL) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF188.64, compared to a current price of CHF289.85 — trading 53.7% above its estimated fair value. The current 3-Year ROIIC % is 24.24, which is near median its 10-year median of 25.78 and 602.6% above the Interactive Media industry median of 3.45. Alphabet(Google)'s overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Alphabet(Google) (XSWX:GOOGL), the current 3-Year ROIIC % is 24.24 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alphabet(Google) (XSWX:GOOGL) Overvalued in 2026?
Based on GuruFocus' analysis, Alphabet(Google) stock appears to be overvalued.
The current stock price of CHF289.85 is trading 53.7% above its estimated GF Value™ of CHF188.64.
GuruFocus considers Alphabet(Google) to be Significantly Overvalued.
Key valuation signals for XSWX:GOOGL:
3-Year ROIIC %: 24.24 (near median its 10-year median of 25.78)
GF Value™: CHF188.64 vs. price of CHF289.85 (53.7% above fair value)
Industry Position: 602.6% above the Interactive Media median (#179 of 529)
No single metric tells the full story. See the XSWX:GOOGL 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.
85GF Score
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