Alphabet Inc. logo GOOG - Alphabet Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
3
BUY 66
HOLD 9
SELL 1
STRONG
SELL
0
| PRICE TARGET: $400.72 DETAILS
HIGH: $450.00
LOW: $345.00
MEDIAN: $400.00
CONSENSUS: $400.72
UPSIDE: 14.89%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 80% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Mild
Trading 5.4% above fair value
Current Price $348.78
Bear Case $187.41 46.3% downside ($187.41 - $348.78) / $348.78 = -46.3% 12% stage 1 growth, 11% discount
Fair Value $331.01 5.1% downside ($331.01 - $348.78) / $348.78 = -5.1% 19% stage 1 growth, 11% discount
Bull Case $508.80 45.9% upside ($508.80 - $348.78) / $348.78 = 45.9% 25% stage 1 growth, 11% discount

Adjust Assumptions

19.4%
11.0%
3.0%

Key Value Driver

FCF growth rate (19% base case)

Terminal Value % of EV 46%
Implied Market Multiple 52.1x
Market is pricing in (growth) 21.7% vs our 19.4% base

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $400.72 from 79 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $331.01 per share.

Warnings

Wall Street's average price target is $400.72 (from 79 analysts). Our estimate is 27% below the consensus -- consider that gap carefully.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions