# Alphabet Return On Equity

GOOGL | Stock | ## USD 95.07 0.98 1.02% |

Alphabet Cl A fundamentals help investors to digest information that contributes to Alphabet's financial success or failures. It also enables traders to predict the movement of Alphabet Stock. The fundamental analysis module provides a way to measure Alphabet's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Alphabet stock.

This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools. Alphabet | Return On Equity |

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## Alphabet Return On Equity Analysis

Alphabet's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.## Current Alphabet Return On Equity | 29.22 % |

Most of Alphabet's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Alphabet Cl A is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

## Alphabet Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for Alphabet is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Return On Equity. Since Alphabet's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Alphabet's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Alphabet's interrelated accounts and indicators.

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## Alphabet Return On Equity Historical Pattern

Today, most investors in Alphabet Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Alphabet's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Alphabet return on equity as a starting point in their analysis.

Alphabet Return On Equity |

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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Compare to competition |

## Alphabet Shareholders Equity

## Shareholders Equity | ## 271.5 Billion |

Based on the latest financial disclosure, Alphabet Cl A has a Return On Equity of 29.22%. This is 181.5% higher than that of the Communication Services sector and significantly higher than that of the Internet Content & Information industry. The return on equity for all United States stocks is notably lower than that of the firm.

## Alphabet Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Alphabet's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Alphabet could also be used in its relative valuation, which is a method of valuing Alphabet by comparing valuation metrics of similar companies.Alphabet is currently under evaluation in return on equity category among related companies.

## Alphabet Current Valuation Drivers

We derive many important indicators used in calculating different scores of Alphabet from analyzing Alphabet's financial statements. These drivers represent accounts that assess Alphabet's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Alphabet's important valuation drivers and their relationship over time.

2017 | 2018 | 2019 | 2020 | 2021 | 2022 (projected) | ||

Net Income Per Employee | 158.06 K | 311.18 K | 288.84 K | 296.81 K | 485.83 K | 524.19 K | |

Revenue Per Employee | 1.38 M | 1.39 M | 1.36 M | 1.35 M | 1.65 M | 1.41 M | |

Average Assets | 184.55 B | 218.22 B | 260.35 B | 292.69 B | 342.29 B | 284.2 B | |

Earnings Before Interest Taxes and Depreciation Amortization EBITDA | 32.91 B | 42.18 B | 49.08 B | 60.05 B | 102.02 B | 110.08 B | |

Earnings Before Interest Taxes and Depreciation Amortization USD | 34.22 B | 44.06 B | 51.51 B | 61.91 B | 103.52 B | 111.69 B | |

Earnings before Tax | 27.19 B | 34.91 B | 39.62 B | 48.08 B | 90.73 B | 97.9 B | |

Average Equity | 150.71 B | 167.57 B | 193.02 B | 211.61 B | 240.94 B | 206.18 B | |

Enterprise Value | 725.29 B | 717.28 B | 921.48 B | 1,190.29 B | 1,924.99 B | 2,076.96 B | |

Free Cash Flow | 23.91 B | 22.83 B | 30.97 B | 42.84 B | 67.01 B | 72.3 B | |

Invested Capital | 146.93 B | 165.38 B | 204.35 B | 238.78 B | 275.9 B | 223.87 B | |

Invested Capital Average | 135.45 B | 157.58 B | 196.6 B | 221.99 B | 260.86 B | 211 B | |

Market Capitalization | 731.9 B | 726.73 B | 923.76 B | 1,185.53 B | 1,922.95 B | 2,074.76 B | |

Tangible Asset Value | 177.86 B | 212.68 B | 253.31 B | 297 B | 334.89 B | 275.89 B | |

Working Capital | 100.12 B | 101.06 B | 107.36 B | 117.46 B | 123.89 B | 113.53 B |

## Alphabet ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Alphabet's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Alphabet's managers, analysts, and investors.Environment Score | Governance Score | Social Score |

## Alphabet Fundamentals

Return On Equity | 29.22 % | |||

Return On Asset | 14.93 % | |||

Profit Margin | 25.89 % | |||

Operating Margin | 29.65 % | |||

Current Valuation | 1270 B | |||

Shares Outstanding | 300.81 M | |||

Shares Owned by Insiders | 7.73 % | |||

Shares Owned by Institutions | 78.48 % | |||

Number of Shares Shorted | 52.28 M | |||

Price to Earning | 1.30 X | |||

Price to Book | 0.28 X | |||

Price to Sales | 0.23 X | |||

Revenue | 278.14 B | |||

Gross Profit | 146.7 B | |||

EBITDA | 96.89 B | |||

Net Income | 72.02 B | |||

Cash and Equivalents | 125 B | |||

Cash per Share | 9.58 X | |||

Total Debt | 28.81 B | |||

Debt to Equity | 0.11 % | |||

Current Ratio | 2.81 X | |||

Book Value Per Share | 342.74 X | |||

Cash Flow from Operations | 95 B | |||

Short Ratio | 1.82 X | |||

Earnings Per Share | 75.04 X | |||

Price to Earnings To Growth | 2.15 X | |||

Number of Employees | 174.01 K | |||

Beta | 1.1 | |||

Market Capitalization | 64.69 B | |||

Total Asset | 147.46 B | |||

Retained Earnings | 125.58 B | |||

Working Capital | 70.8 B | |||

Current Asset | 90.11 B | |||

Current Liabilities | 19.31 B | |||

Z Score | 2.2 |

## About Alphabet Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Alphabet Cl A's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Alphabet using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Alphabet Cl A based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.Last Reported | Projected for 2022 | ||

Average Equity | 240.9 B | 206.2 B |

## Alphabet Investors Sentiment

The influence of Alphabet's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Alphabet. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Investor biases related to Alphabet's public news can be used to forecast risks associated with investment in Alphabet. The trend in average sentiment can be used to explain how an investor holding Alphabet can time the market purely based on public headlines and social activities around Alphabet Cl A. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.

Alphabet's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Alphabet's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Alphabet's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Alphabet.

## Alphabet Implied Volatility | 39.73 |

Alphabet's implied volatility exposes the market's sentiment of Alphabet Cl A stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Alphabet's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Alphabet stock will not fluctuate a lot when Alphabet's options are near their expiration.

Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Alphabet in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Alphabet's short interest history, or implied volatility extrapolated from Alphabet options trading.

## Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Alphabet Cl A using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.## Build Optimal Portfolios

### Align your risk with return expectations

Please check Alphabet Piotroski F Score and Alphabet Altman Z Score analysis. Note that the Alphabet Cl A information on this page should be used as a complementary analysis to other Alphabet's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

## Complementary Tools for Alphabet Stock analysis

When running Alphabet Cl A price analysis, check to measure Alphabet's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alphabet is operating at the current time. Most of Alphabet's value examination focuses on studying past and present price action to predict the probability of Alphabet's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Alphabet's price. Additionally, you may evaluate how the addition of Alphabet to your portfolios can decrease your overall portfolio volatility.

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Is Alphabet's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alphabet. If investors know Alphabet will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alphabet listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth YOY (0.24) | Market Capitalization 1262.3 B | Quarterly Revenue Growth YOY 0.061 | Return On Assets 0.14 | Return On Equity 0.27 |

The market value of Alphabet Cl A is measured differently than its book value, which is the value of Alphabet that is recorded on the company's balance sheet. Investors also form their own opinion of Alphabet's value that differs from its market value or its book value, called intrinsic value, which is Alphabet's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alphabet's market value can be influenced by many factors that don't directly affect Alphabet's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Alphabet's value and its price as these two are different measures arrived at by different means. Investors typically determine Alphabet value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alphabet's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.