Shareholder returns and stock trends
Alphabet (GOOG) generated investor returns of 0.70% in the trailing-one-month period and 21.9% in the trailing-12-month period. The company’s stock price rose 2.3% in the trailing-five-day period.
Alibaba (BABA), Yelp (YELP), Amazon (AMZN), and Baidu (BIDU)—Alphabet’s peer companies in the Internet space—generated returns of 75.6%, 10.5%, 26.9%, and 31.8%, respectively, in the trailing-12-month period.
Relative strength index
For the last 14 days, Alphabet reported a relative strength index (or RSI) of 58 compared to 74, 54, 48, and 63 for Twitter, Yelp, Amazon, and Baidu, respectively. The RSI measures the speed and change at which prices move.
Alphabet stock was trading at $937.34—0.90% above its 100-day moving average of $929, 0.57% above its 50-day moving average of $932, and 1.66% above its 20-day moving average of $922.
Alphabet’s cash flow numbers in focus
Alphabet has $94.7 billion as cash in hand. Its price-to-cash flow and price-to-free cash flow come to 18.2x and 25.9x, respectively. For the trailing 12 months, the company’s enterprise value to cash flow was 15.6x, and its enterprise value to free cash flow was 22.3x.
A look at Alphabet’s debt position
Alphabet’s balance sheet reflects total debt of $3.9 billion. The company reported total capital of ~$152.2 billion. So, if you work out its total debt-to-capital ratio, you come to 3%.
The company’s debt-to-assets, debt-to-equity, and debt-to-EBITDA work out to 0.02, 2.67, and 0.12, respectively. Delving deeper into the company’s debt ratios, you see that Alphabet has an EBIT on interest ratio of 989.8x. This multiple gives you a clue to a company’s ability to pay interest on its outstanding debt. It’s what analysts call the “interest coverage ratio.”
Alphabet has a debt to enterprise value of 1%.
Inside Alphabet’s price and valuation multiples
Alphabet’s current book value per share of $214.3 compares with an expected book value per share of $215.4. Alphabet stock is trading at a price-to-book value of 4.5x.
The company’s price-to-sales of 6.6x also compares with estimated price-to-sales of 6.1x.
Alphabet’s credit rating
Moody’s rating on Alphabet’s debt is Aa2. Alphabet also has an S&P debt rating and debt outlook of AA+ and “Stable,” respectively.