Is Alphabet Inc. (GOOGL) Undervalued?
Based on the current stock price of $313.51 and a P/E ratio of 30.95,Alphabet Inc. has a PEG ratio of 0.99.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 0.99, GOOGL appears to be potentially undervalued relative to its growth rate of 31.30%.
Based on a PEG ratio of 0.98 (adjusted for dividends).
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How we analyzed GOOGL
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 30.95and dividing it by the annual growth rate of 31.30%.
PEG = 30.95 (P/E) ÷ 31.30 (Growth) = 0.99
Frequently Asked Questions about GOOGL
What is the current PEG Ratio for Alphabet Inc. (GOOGL)?+
The current PEG Ratio for Alphabet Inc. is 0.99. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is GOOGL stock undervalued right now?+
Based on the PEG ratio of 0.99, Alphabet Inc. appears to be potentially undervalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for GOOGL?+
The PEGY ratio for Alphabet Inc. is 0.98. This metric accounts for dividend yield (0.27%), providing a more complete valuation picture.