Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Alphabet Inc., current price multiples
| Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Trade Desk Inc. | Walt Disney Co. | Media & Entertainment | Communication Services | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||
| Current share price (P) | $331.33 | ||||||||||
| No. shares of common stock outstanding | 12,097,000,000 | ||||||||||
| Growth rate (g) | 27.94% | ||||||||||
| Earnings per share (EPS) | $10.93 | ||||||||||
| Next year expected EPS | $13.98 | ||||||||||
| Operating profit per share | $10.67 | ||||||||||
| Sales per share | $33.30 | ||||||||||
| Book value per share (BVPS) | $34.33 | ||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to earnings (P/E) | 30.33 | 5.55 | 28.04 | 31.09 | 32.28 | 14.99 | 32.97 | 30.01 | |||
| Price to next year expected earnings | 23.70 | 4.98 | 22.13 | 23.65 | 28.98 | 14.75 | 27.26 | 25.93 | |||
| Price-earnings-growth (PEG) | 1.09 | 0.49 | 1.05 | 0.99 | 2.83 | 9.11 | 1.58 | 1.91 | |||
| Price to operating profit (P/OP) | 31.06 | 5.37 | 20.36 | 25.62 | 29.71 | 14.29 | 28.34 | 24.05 | |||
| Price to sales (P/S) | 9.95 | 0.90 | 8.44 | 7.56 | 5.19 | 1.97 | 8.24 | 6.28 | |||
| Price to book value (P/BV) | 9.65 | 1.15 | 7.80 | 12.83 | 4.30 | 1.69 | 8.81 | 7.06 | |||
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Alphabet Inc., historical price multiples
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The valuation ratios demonstrate fluctuating investor sentiment over the observed period. Generally, the ratios indicate increasing valuation levels from 2022 through 2025, though with variations in the pace of change for each metric. A period of contraction in 2022 is followed by a recovery and subsequent expansion in the later years.
- Price to Earnings (P/E)
- The Price to Earnings ratio decreased from 25.74 in 2021 to 22.47 in 2022, suggesting a lower valuation relative to earnings. It then experienced a moderate increase to 23.89 in 2023, followed by a slight decrease to 23.54 in 2024. A notable increase to 30.33 is observed in 2025, indicating a significantly higher valuation based on earnings.
- Price to Operating Profit (P/OP)
- A substantial decline in the Price to Operating Profit ratio occurred between 2021 and 2022, moving from 24.86 to 18.01. This suggests a considerable reduction in valuation relative to operating profitability. The ratio then showed a recovery, reaching 20.92 in 2023 and 20.97 in 2024, before increasing sharply to 31.06 in 2025. This final increase mirrors the trend observed in the P/E ratio.
- Price to Sales (P/S)
- The Price to Sales ratio experienced a significant decrease from 7.60 in 2021 to 4.76 in 2022. A recovery began in 2023, with the ratio reaching 5.74, and continued through 2024 to 6.73. The most substantial increase occurred in 2025, with the ratio climbing to 9.95, indicating a higher valuation relative to revenue.
- Price to Book Value (P/BV)
- The Price to Book Value ratio followed a similar pattern to the other ratios, decreasing from 7.78 in 2021 to 5.26 in 2022. It then increased steadily to 6.22 in 2023 and 7.25 in 2024, culminating in a rise to 9.65 in 2025. This indicates a growing valuation relative to the company’s net asset value.
The consistent increases across all ratios in 2025 suggest a potential shift in market perception or expectations regarding future growth and profitability. The contraction observed in 2022 across all metrics indicates a period of decreased investor confidence or reassessment of the company’s value.
Price to Earnings (P/E)
Alphabet Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 12,097,000,000 | 12,190,000,000 | 12,433,000,000 | 12,807,000,000 | 13,219,426,420 | |
| Selected Financial Data (US$) | ||||||
| Net income (in millions) | 132,170) | 100,118) | 73,795) | 59,972) | 76,033) | |
| Earnings per share (EPS)2 | 10.93 | 8.21 | 5.94 | 4.68 | 5.75 | |
| Share price1, 3 | 331.33 | 193.30 | 141.80 | 105.22 | 148.04 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 30.33 | 23.54 | 23.89 | 22.47 | 25.74 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Comcast Corp. | 5.35 | 7.86 | 12.01 | 31.38 | 16.01 | |
| Meta Platforms Inc. | 30.89 | 27.91 | 30.97 | 21.10 | 16.44 | |
| Netflix Inc. | 33.11 | 47.72 | 45.64 | 36.18 | 33.56 | |
| Trade Desk Inc. | — | 90.94 | 206.87 | 609.53 | 284.75 | |
| Walt Disney Co. | 15.49 | 39.74 | 73.44 | 54.90 | 137.89 | |
| P/E Ratio, Sector | ||||||
| Media & Entertainment | — | 25.28 | 26.54 | 24.66 | 24.24 | |
| P/E Ratio, Industry | ||||||
| Communication Services | — | 23.64 | 24.04 | 25.67 | 21.27 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 132,170,000,000 ÷ 12,097,000,000 = 10.93
3 Closing price as at the filing date of Alphabet Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 331.33 ÷ 10.93 = 30.33
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited fluctuations over the five-year period. Initially, the ratio decreased before increasing again, suggesting shifts in investor sentiment and earnings expectations.
- Share Price
- The share price demonstrated a decline from December 31, 2021, to December 31, 2022, followed by a recovery and substantial growth through December 31, 2025. The most significant increase occurred between December 31, 2024, and December 31, 2025.
- Earnings Per Share (EPS)
- Earnings per share decreased from December 31, 2021, to December 31, 2022, then showed a pattern of growth through December 31, 2025. The rate of EPS growth accelerated in the later years of the period.
- Price to Earnings (P/E) Ratio
- The P/E ratio began at 25.74 on December 31, 2021, and decreased to 22.47 on December 31, 2022. It then experienced a modest increase to 23.89 on December 31, 2023, and a slight decrease to 23.54 on December 31, 2024. A notable increase to 30.33 was observed on December 31, 2025. This final increase suggests that investors were willing to pay a higher premium for each dollar of earnings, potentially reflecting increased confidence in future growth prospects.
The interplay between share price and EPS largely dictates the P/E ratio. The initial decrease in the P/E ratio in 2022 coincided with both a declining share price and decreasing EPS. The subsequent increases in both share price and EPS contributed to the higher P/E ratio observed in 2025.
The increasing P/E ratio in the final year of the period may indicate growing investor optimism, or potentially, overvaluation relative to earnings. Further investigation into industry trends and competitor valuations would be necessary to provide a more comprehensive assessment.
Price to Operating Profit (P/OP)
Alphabet Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 12,097,000,000 | 12,190,000,000 | 12,433,000,000 | 12,807,000,000 | 13,219,426,420 | |
| Selected Financial Data (US$) | ||||||
| Income from operations (in millions) | 129,039) | 112,390) | 84,293) | 74,842) | 78,714) | |
| Operating profit per share2 | 10.67 | 9.22 | 6.78 | 5.84 | 5.95 | |
| Share price1, 3 | 331.33 | 193.30 | 141.80 | 105.22 | 148.04 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 31.06 | 20.97 | 20.92 | 18.01 | 24.86 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Comcast Corp. | 5.18 | 5.46 | 7.93 | 12.00 | 10.89 | |
| Meta Platforms Inc. | 22.43 | 25.09 | 25.90 | 16.91 | 13.84 | |
| Netflix Inc. | 27.28 | 39.91 | 35.50 | 28.85 | 27.71 | |
| Trade Desk Inc. | — | 83.69 | 184.64 | 286.30 | 314.28 | |
| Walt Disney Co. | 14.76 | 23.75 | 33.90 | 26.43 | 91.54 | |
| P/OP Ratio, Sector | ||||||
| Media & Entertainment | — | 21.73 | 21.70 | 18.24 | 21.31 | |
| P/OP Ratio, Industry | ||||||
| Communication Services | — | 18.94 | 18.02 | 17.59 | 17.72 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 129,039,000,000 ÷ 12,097,000,000 = 10.67
3 Closing price as at the filing date of Alphabet Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 331.33 ÷ 10.67 = 31.06
5 Click competitor name to see calculations.
The price to operating profit (P/OP) ratio exhibited fluctuations over the five-year period. Initially, a decrease was observed, followed by a period of relative stability, and then a notable increase towards the end of the analyzed timeframe.
- Overall Trend
- The P/OP ratio began at 24.86 in 2021, decreased to 18.01 in 2022, and then showed a modest increase to 20.92 in 2023 and 20.97 in 2024. A significant rise to 31.06 was recorded in 2025, indicating a substantial shift in valuation relative to operating profit.
- Share Price Influence
- The share price demonstrated a similar pattern of decline in 2022, followed by recovery and substantial growth in 2024 and 2025. This movement in share price directly influenced the P/OP ratio, particularly contributing to the increase observed in later years.
- Operating Profit per Share Influence
- Operating profit per share showed a consistent upward trend throughout the period, increasing from US$5.95 in 2021 to US$10.67 in 2025. While this growth partially offset the impact of the rising share price, it was not sufficient to prevent the overall increase in the P/OP ratio in 2025.
- Ratio Dynamics
- The decrease in the P/OP ratio from 2021 to 2022 was likely driven by a more significant decline in share price than in operating profit per share. The subsequent stabilization and increase in the ratio from 2023 onwards suggest that investor expectations regarding future operating performance, coupled with the accelerating share price, played a key role in the valuation.
The substantial increase in the P/OP ratio in 2025 warrants further investigation to determine the underlying drivers, such as changes in market sentiment, industry outlook, or company-specific factors.
Price to Sales (P/S)
Alphabet Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 12,097,000,000 | 12,190,000,000 | 12,433,000,000 | 12,807,000,000 | 13,219,426,420 | |
| Selected Financial Data (US$) | ||||||
| Revenues (in millions) | 402,836) | 350,018) | 307,394) | 282,836) | 257,637) | |
| Sales per share2 | 33.30 | 28.71 | 24.72 | 22.08 | 19.49 | |
| Share price1, 3 | 331.33 | 193.30 | 141.80 | 105.22 | 148.04 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 9.95 | 6.73 | 5.74 | 4.76 | 7.60 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Comcast Corp. | 0.87 | 1.03 | 1.52 | 1.39 | 1.95 | |
| Meta Platforms Inc. | 9.29 | 10.58 | 8.98 | 4.20 | 5.49 | |
| Netflix Inc. | 8.05 | 10.66 | 7.32 | 5.14 | 5.78 | |
| Trade Desk Inc. | — | 14.62 | 19.02 | 20.62 | 32.79 | |
| Walt Disney Co. | 2.03 | 2.16 | 1.94 | 2.09 | 4.08 | |
| P/S Ratio, Sector | ||||||
| Media & Entertainment | — | 6.32 | 5.25 | 3.73 | 5.62 | |
| P/S Ratio, Industry | ||||||
| Communication Services | — | 4.95 | 4.00 | 2.93 | 3.98 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 402,836,000,000 ÷ 12,097,000,000 = 33.30
3 Closing price as at the filing date of Alphabet Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 331.33 ÷ 33.30 = 9.95
5 Click competitor name to see calculations.
The price-to-sales ratio exhibited considerable fluctuation over the five-year period. Initially, the ratio decreased significantly before stabilizing and then increasing substantially towards the end of the observed timeframe. This movement correlates with changes in both share price and sales per share.
- Price-to-Sales Ratio (P/S)
- The P/S ratio began at 7.60 in 2021. A substantial decline was observed in 2022, falling to 4.76. A moderate increase followed in 2023, reaching 5.74. Further growth was noted in 2024, with the ratio reaching 6.73. The most significant increase occurred between 2024 and 2025, with the P/S ratio rising to 9.95.
- Share Price Trend
- The share price mirrored the initial decline in the P/S ratio, decreasing from US$148.04 in 2021 to US$105.22 in 2022. A recovery began in 2023, with the price rising to US$141.80. Continued positive momentum led to US$193.30 in 2024 and a substantial increase to US$331.33 in 2025.
- Sales per Share Trend
- Sales per share demonstrated a consistent upward trend throughout the period. It increased from US$19.49 in 2021 to US$22.08 in 2022, then to US$24.72 in 2023. This growth continued with values of US$28.71 in 2024 and US$33.30 in 2025. The consistent growth in sales per share contributed to the overall changes in the P/S ratio.
The significant increase in the P/S ratio in 2025 suggests that the market valuation of sales grew at a faster rate than sales themselves. This could indicate increased investor confidence or expectations for future growth. The initial decrease in the ratio in 2022 was likely driven by a combination of declining share price and increasing sales per share, but the share price decline had a more pronounced effect.
Price to Book Value (P/BV)
Alphabet Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 12,097,000,000 | 12,190,000,000 | 12,433,000,000 | 12,807,000,000 | 13,219,426,420 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | 415,265) | 325,084) | 283,379) | 256,144) | 251,635) | |
| Book value per share (BVPS)2 | 34.33 | 26.67 | 22.79 | 20.00 | 19.04 | |
| Share price1, 3 | 331.33 | 193.30 | 141.80 | 105.22 | 148.04 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 9.65 | 7.25 | 6.22 | 5.26 | 7.78 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Comcast Corp. | 1.10 | 1.49 | 2.24 | 2.08 | 2.36 | |
| Meta Platforms Inc. | 8.60 | 9.53 | 7.91 | 3.89 | 5.18 | |
| Netflix Inc. | 13.66 | 16.80 | 11.99 | 7.82 | 10.83 | |
| Trade Desk Inc. | — | 12.12 | 17.10 | 15.38 | 25.68 | |
| Walt Disney Co. | 1.75 | 1.96 | 1.74 | 1.82 | 3.11 | |
| P/BV Ratio, Sector | ||||||
| Media & Entertainment | — | 6.75 | 5.64 | 4.09 | 5.73 | |
| P/BV Ratio, Industry | ||||||
| Communication Services | — | 5.56 | 4.54 | 3.41 | 4.32 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 415,265,000,000 ÷ 12,097,000,000 = 34.33
3 Closing price as at the filing date of Alphabet Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 331.33 ÷ 34.33 = 9.65
5 Click competitor name to see calculations.
The price to book value ratio exhibited considerable fluctuation over the five-year period. Initially, the ratio decreased before demonstrating a sustained upward trend.
- Price to Book Value (P/BV)
- In 2021, the P/BV ratio stood at 7.78. A significant decline was observed in 2022, with the ratio falling to 5.26. This represents a decrease in market valuation relative to the net asset value of the company.
- The ratio began to recover in 2023, increasing to 6.22, and continued this upward trajectory in 2024, reaching 7.25. This suggests a growing investor confidence in the company’s ability to generate value from its assets.
- The most substantial increase occurred between 2024 and 2025, with the P/BV ratio rising to 9.65. This indicates a substantial premium investors were willing to pay for each dollar of net asset value, potentially driven by expectations of future growth or improved profitability.
The observed trend in the P/BV ratio correlates with the movements in both share price and book value per share. While the share price experienced volatility, the book value per share consistently increased throughout the period. The increasing book value per share, coupled with the rising share price in later years, contributed to the overall increase in the P/BV ratio.
The substantial increase in the P/BV ratio in 2025 warrants further investigation to determine the underlying factors driving this valuation shift. It is important to consider broader market conditions and company-specific developments that may have influenced investor sentiment.