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GOOGL

Alphabet Inc. — Beer Score

GOOGL · US Equity · Tech — Search & Cloud
$180.00
Market Price (indicative) · Mar 22, 2026
↑ Price vs intrinsic
Reference price only. Not an official exchange feed.
100
/ 100
Pure Beer — Est. 100% Fundamental Value — Est. 0% Speculation
54% premium to fair value
Updated: Feb 8, 2026 16:30 UTC · Filing: 10-K (Jan 2026) · Model: DCF v1.0
Not investment advice · Model-based estimate
Estimated Value (Beer)
$198.00
100%
Est. Speculation Premium (Foam)
$0.00
0%
🍺 100% Est. Fundamental Value 🫧 0% Est. Speculation
Track Score Alerts (Coming Soon) See Model Assumptions ↓

Key Financials

TTM
Revenue$365B
Net Income$95B
Free Cash Flow$72B
P/E Ratio22.0x
EPS (TTM)$7.70
Market Cap$2.1T
Total Debt$30B
Cash & Equiv.$95B

DCF Valuation

Model Estimate
$198
Est. intrinsic value (DCF model)
vs $180 market price
Our model suggests the stock is trading ~9% below the estimated intrinsic value. The market may be underpricing current fundamentals.
WACC10.0%
Growth Rate (5yr)12%
Terminal Growth3%

Model output varies with assumptions (WACC, growth, margins). This is not a price target or investment recommendation.

What the Market Is Pricing In

Reverse DCF
19.9%
Implied annual FCF growth rate the
market is pricing into GOOGL
At the current price, the market is implying ~19.9% annual growth, versus our 12.0% base case.
Model Growth (5yr)12.0%
Implied Growth19.9%

Reverse DCF finds the growth rate needed to justify the current market price using the same WACC and terminal growth assumptions. Not a prediction.

Sensitivity Analysis

WACC × Growth

How the estimated intrinsic value changes with different WACC and growth assumptions.

Most scenarios suggest the stock trades above estimated intrinsic value.

WACC \ Growth 9% 12% 15%
8.5%$254$288$325
10.0%$198$224 ← base$253
11.5%$162$183$206

Each cell shows estimated intrinsic value per share. Green = above current price (undervalued scenario). Red = below current price (overvalued scenario). Center cell = base case.

Score History — 90 Days

Free
90d Low
85
90d High
99
Zone Changes
2

Alphabet Inc. Stock Valuation Analysis — Beer Score Breakdown

Alphabet Inc.'s Beer Score of 100 means that, according to our DCF model, more than half of its current $180 stock price is supported by the company's existing fundamentals — revenue, earnings, free cash flow, and assets. The stock appears undervalued relative to our model estimate.

This suggests value investors may find an opportunity here, though the market may be pricing in risks our model does not capture.

How Beer Score Is Calculated for GOOGL

We pull Alphabet Inc.'s latest 10-K and 10-Q filings from SEC EDGAR, run a DCF analysis using a 10.0% WACC and 12% revenue growth rate over 5 years with 3% terminal growth, then compare the resulting model estimate ($198) against the current market price ($180). The Beer Score of 100 represents the ratio: $198 ÷ $180 = 100%. Model output varies with assumptions. Learn more about our methodology →

Important Information

Beer Score is an educational indicator, not investment advice. It measures the model-estimated gap between a stock's current market price and an estimated intrinsic value derived from public financial data. A low Beer Score does not mean "sell" and a high score does not mean "buy." Past Beer Score patterns do not predict future price movements. Model output varies with assumptions (WACC, growth rate, terminal growth, margins).

Prices shown are indicative reference prices for educational purposes only and are not sourced from an official exchange feed. Data sources include SEC EDGAR filings (10-K and 10-Q), indicative market price data, and proprietary DCF models. Scores update daily after market close. For the full ranking of all stocks, visit the Beer Score Heatmap or read Today's Foam Report.

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About This Valuation

Why does Alphabet Inc. have a Beer Score of 65?
Alphabet Inc. (GOOGL) scores 65 because the stock is currently trading roughly 54% above its estimated intrinsic value of $198. With $72B in annual free cash flow and $365B in revenue, the company's fundamentals partially justify the current market price of $305.72 per share. The Beer Score reflects that 65% of the price is backed by estimated fundamental value.
Is GOOGL overvalued or undervalued?
Based on our DCF model, Alphabet Inc. appears moderately overvalued. The estimated intrinsic value of $198 compared to the current price of $305.72 carries a 35% speculation premium. This is a model-based estimate using 10.0% WACC and 12% projected growth — not a buy or sell recommendation. The actual fair value depends on assumptions that may change with new earnings data or market conditions.
What assumptions drive the $198 intrinsic value?
The DCF model uses a 10.0% weighted average cost of capital and projects 12% annual revenue growth over five years. Terminal growth is set at 3%. Starting from $72B in current free cash flow, these assumptions produce an estimated intrinsic value of $198 per share. The model is most sensitive to the growth rate and WACC inputs — small changes in either significantly alter the output.
What could change Alphabet Inc.'s Beer Score?
Alphabet faces disruption risk from AI-powered search alternatives like Perplexity and ChatGPT that could erode search advertising share. Antitrust remedies from the DOJ case could force structural changes to the search distribution model. However, YouTube and Cloud growth provide diversification. AI integration into search could actually increase query volume and monetization if executed well.

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