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Alphabet valuation exercise: market cap, EV and multiples vs competitors

Search, ads, cloud, YouTube. We rebuild its market value from the price, split it into its parts, and compare its multiples with those of its largest competitors.

Verified figures, not advice. Every number on this page comes from the company's own filings or from exchange prices, and the source is linked. Every calculation is shown, so you can repeat it. What we do not do is tell you what a share should be worth or whether to buy it: that depends on your goals and on forecasts, and no multiple can settle it. This is a snapshot: prices of 12 Oct 2026, company results up to mid 2026. Found a mistake? Tell us and we correct it.

Step 1. Market capitalisation

StepNumberWhere it comes from
Share price (nominal value)
$352.72
Close of 12 Oct 2026
Shares outstanding
12.23 bn
Latest quarterly report cover page, as of 2026-07-15
Market capitalisation
$4.31tn
Price x shares

Market capitalisation is the value the stock market puts on all the shares together. It is the nominal share price multiplied by the number of shares.

Step 2. How the value is composed

Building blockAmountMeaning
Market capitalisation
$4.31tn
What the market asks for all the shares
+ Debt
$100.2bn
Borrowings, leases for premises excluded
- Cash
$55.9bn
Cash and equivalents
- Short-term investments
$186.6bn
Marketable securities due within a year
+ Minority interests
$7.1bn
Part of subsidiaries owned by others
Enterprise value (EV)
$4.18tn
The price of the whole business, as a buyer would see it

Of the $4.31tn market value, accounting book equity is $640.5bn. The remaining $3.67tn is what investors pay above the books: brands, software, customer relationships and expected growth that the balance sheet does not record. Price to book is 6.7x.

Step 3. Fundamentals, last twelve months

Last twelve monthsAmountMargin or note
Revenue
$445.9bn
Up to 2026-06-30
Operating income
$147.6bn
33% of revenue
EBITDA
$172.9bn
39% of revenue
Net income (GAAP)
$244.1bn
55% of revenue
Free cash flow
$53.3bn
Operating cash flow minus capital spending

Step 4. Multiples against the largest competitors

MultipleAlphabetMETAMSFTAMZNPeer meanPeer medianvs median
P/E (price / net income)
17.7x
27.8x
30.0x
20.7x
26.2x
27.8x
-36%
EV / sales
9.4x
8.3x
12.0x
3.6x
8.0x
8.3x
+13%
EV / EBITDA
24.2x
17.2x
20.5x
16.6x
18.1x
17.2x
+41%
EV / operating income
28.3x
21.7x
25.6x
30.0x
25.8x
25.6x
+10%
P / free cash flow
81.0x
50.0x
60.0x
n.m.
55.0x
55.0x
+47%

Context: Alphabet earns an EBITDA margin of 39%. The peers earn 48%, 59%, 22% (median 48%). A company that keeps more of each dollar of sales often trades at a higher multiple.

Meta competes for advertising, Microsoft and Amazon for cloud and AI. All four are among the largest companies, so this is a comparison among giants.

What the comparison shows

  • EV / EBITDA: 24.2x against a peer median of 17.2x (mean 18.1x). Difference to the median: +41%.
  • EV / sales: 9.4x against a peer median of 8.3x (mean 8.0x). Difference: +13%.
  • P/E: 17.7x against a peer median of 27.8x. Difference: -36%.

These are descriptions of today's prices, not forecasts. "n.m." means not meaningful, for example negative profit.

Where the comparison is distorted

  • Reported net income is inflated by about $149bn of pre-tax unrealized gains on equity stakes (including SpaceX) over the last twelve months. A price-to-earnings ratio on this profit looks low for a reason that is not repeatable. Enterprise value also nets out $187bn of securities that include those stakes.
  • Meta net income includes net tax effects of about -$7.9bn.

Sources

Prices of 12 Oct 2026 from exchange historical data. Share counts, debt, cash and results from each company's filings with the US SEC, read on 13 October 2026 (Sony: its filings and the ECB exchange rate of 12 Oct 2026).

Alphabet Inc. (GOOGL)
Meta Platforms, Inc. (META)
Microsoft Corporation (MSFT)
Amazon.com, Inc. (AMZN)

Questions people ask

Does a higher multiple than competitors mean the share is overvalued?

No. It means investors pay more per dollar of sales or profit. The reason can be faster growth, higher margins or lower risk, or it can be excess optimism. A multiple gap is a question to investigate, not an answer.

Why use enterprise value and not only market cap?

Market cap prices the shares only. Enterprise value adds debt and subtracts cash, so it compares the whole business regardless of how it is financed.

Why show both the mean and the median of competitors?

The mean is pulled up by one extreme value. The median is the middle value and resists outliers. When they differ a lot, trust the median more.

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