As of April 1, 2026, Alphabet Inc's estimated intrinsic value ranges from $73.83 to $470.58 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $415.49 | +44.5% |
| Discounted Cash Flow (5Y) | $342.81 | +19.2% |
| Dividend Discount Model (Multi-Stage) | $351.91 | +22.4% |
| Dividend Discount Model (Stable) | $470.58 | +63.6% |
| Earnings Power Value | $73.83 | -74.3% |
Is Alphabet Inc (GOOGL) undervalued or overvalued?
With the current market price at $287.56, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Alphabet Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.51 | 0.68 |
| Cost of equity | 6.2% | 8.7% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 14.1% | 15.0% |
| Debt/Equity ratio | 0.02 | 0.02 |
| After-tax WACC | 6.2% | 8.6% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $343 | $4,167,258M | 85.3% |
| 10-Year Growth | $415 | $5,046,486M | 74.4% |
| 5-Year EBITDA | $152 | $1,863,280M | 67.2% |
| 10-Year EBITDA | $212 | $2,581,466M | 50.0% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $65,791M |
| Discount Rate (WACC) | 8.6% - 6.2% |
| Enterprise Value | $764,038M - $1,062,837M |
| Net Debt | $20,335M |
| Equity Value | $743,703M - $1,042,502M |
| Outstanding Shares | 12,097M |
| Fair Value | $61 - $86 |
| Selected Fair Value | $73.83 |
| Metric | Value |
|---|---|
| Market Capitalization | $3478613M |
| Enterprise Value | $3498948M |
| Trailing P/E | 26.32 |
| Forward P/E | 23.12 |
| Trailing EV/EBITDA | 6.35 |
| Current Dividend Yield | 30.28% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.02 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $124.65 |
| Discounted Cash Flow (5Y) | 25% | $85.70 |
| Dividend Discount Model (Multi-Stage) | 20% | $70.38 |
| Dividend Discount Model (Stable) | 15% | $70.59 |
| Earnings Power Value | 10% | $7.38 |
| Weighted Average | 100% | $358.70 |
Based on our comprehensive valuation analysis, Alphabet Inc's intrinsic value is $358.70, which is approximately 24.7% above the current market price of $287.56.
Key investment considerations:
Given these factors, we believe Alphabet Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.