Using the industry peer median P/E multiple (trailing + forward), Alphabet Inc. (GOOGL) has a fair value of $316.34 based on 8 comparable companies in the Internet Content & Information industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Alphabet Inc.GOOGL | 3,558,074 | 26.9x | 25.4x |
| NVIDIA CorporationNVDA | 4,342,817 | 36.5x | 21.6x |
| Apple Inc.AAPL | 3,648,319 | 33.3x | 29.3x |
| Microsoft CorporationMSFT | 2,755,206 | 27.2x | 22.5x |
| Taiwan Semiconductor Manufacturing Company LimitedTSM | 1,691,373 | 31.4x | 32.5x |
| Meta Platforms, Inc.META | 1,499,714 | 25.3x | 20.0x |
| Broadcom Inc.AVGO | 1,473,517 | 65.2x | 27.7x |
| Cisco Systems, Inc.CSCO | 326,360 | 32.4x | 22.3x |
| Garmin Ltd.GRMN | 45,583 | 27.6x | 33.5x |
| Industry Median | 31.9x | 25.1x | |
| (*) Profit after tax | 132,170 | 140,076 | |
| Equity Value | 4,217,999 | 3,519,783 | |
| (/) Outstanding shares | 12,230 | 12,230 | |
| Fair Price | $345 | $288 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.