Business quality: about averageValuation: in line with its sector
An average business among communication services companies, priced about in line with them.
Alphabet trades at 21.2 times the next 12 months of expected earnings, against a median of 14.8x for the 28 communication services stocks we cover. The quality score blends where it ranks on revenue growth, gross margin, operating margin and free-cash-flow margin (net margin for banks and insurers) over the last 12 months, from SEC filings.
- Revenue grew faster than the sector median: +22.2% vs +10.8%
- Keeps less of each sale (gross margin): 60.9% vs 60.9%
- More profitable (operating margin): 33.3% vs 18.6%
- Turns less of its sales into cash: 4.2% vs 9.0%