uploads/2018/11/goog2.png

How Alphabet’s Forward Valuation Compares with Peers’

By

Updated

Management’s effectiveness

Alphabet’s (GOOGL) TTM (trailing-12-month) return-on-assets ratio is 11.62x, while the industry and sector averages are 11.29x and 10.74x, respectively. In comparison, peers Baidu (BIDU), Facebook (FB), Yelp (YELP), and Alibaba (BABA) have TTM return-on-assets ratios of 7.03x, 25.40x, 1.49x, and 11.13x, respectively.

Alphabet’s five-year return-on-assets ratio is 12.33%, while the industry and sector averages are 12.17% and 9.80%, respectively. The company’s return-on-investment ratio is 13.03%, and its five-year average is 14.20%. Its TTM return-on-equity ratio 14.01%.

Article continues below advertisement

Efficiency

Alphabet’s TTM revenue per employee is $1.3 million, whereas the industry and sector averages are $30.4 million and $5.6 million, respectively. Its TTM net income per employee is $268,469, and the industry and sector averages are $5,485,752 and $587,131, respectively. Alphabet’s TTM receivable turnover ratio is 7.73x, and its TTM asset turnover ratio is 0.60x.

Valuation ratios

Alphabet’s TTM price-to-sales ratio is 6.88x, and the industry and sector averages are 8.52x and 2.67x, respectively. The company’s price-to-book ratio in its most recent quarter stands at 4.64x, while the industry and sector averages are 6.01x and 2.36x. Alphabet’s price-to-tangible book value ratio is 5.31x, and the industry and sector averages are 9.54x and 3.62x. Its TTM price-to-cash flow ratio is 26.58x, whereas the industry and sector averages are 29.71x and 13.99x.

Advertisement

More From Market Realist