Alphabet Inc. logo GOOG - Alphabet Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
3
BUY 66
HOLD 9
SELL 1
STRONG
SELL
0
| PRICE TARGET: $425.18 DETAILS
HIGH: $515.00
LOW: $350.00
MEDIAN: $425.00
CONSENSUS: $425.18
UPSIDE: 20.38%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 80% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Mild
Trading 4.0% above fair value
Current Price $353.19
Bear Case $192.19 45.6% downside ($192.19 - $353.19) / $353.19 = -45.6% 12% stage 1 growth, 11% discount
Fair Value $339.46 3.9% downside ($339.46 - $353.19) / $353.19 = -3.9% 19% stage 1 growth, 11% discount
Bull Case $521.78 47.7% upside ($521.78 - $353.19) / $353.19 = 47.7% 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 52.8x
Market is pricing in (growth) 21.9% 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 $425.18 from 79 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $339.46 per share.

Warnings

Wall Street's average price target is $425.18 (from 79 analysts). Our estimate is 31% 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