Alphabet

ABEC.F

Internet Content & Information · Communication Services

Price

€292.80

+3.30 (+1.14%)

Market Cap

€3.54T

Exchange

Frankfurt Stock Exchange

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Strong

Growth

Exceptional

Cash Flow

Good

Stability

Exceptional

Valuation

Good

Dividends

Weak

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Share count falling — buybacks

−9.8% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 13.55B (2021) → 12.23B (2025)

Winston Score History

The full picture

Alphabet is the parent company of Google, the world's most widely used search engine. It also owns YouTube, the largest online video platform, and provides cloud computing services through Google Cloud. Its main customers include everyday internet users, advertisers, and businesses that need computing infrastructure.

Alphabet makes most of its money by selling digital advertising — when companies pay to show ads in Google Search results or on YouTube. It operates globally, with revenue coming from virtually every country, and generates roughly $350 billion in annual revenue, making it one of the largest companies in the world. Its biggest competitive advantage is that billions of people use Google as their default starting point on the internet, giving it unmatched data to target ads. The key risk is that AI-powered search tools from competitors like Microsoft could reduce Google's dominance in search, which remains the core of its business.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+24.2% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+296.6% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$61.1B/ year

↑ Rising (+24% vs prior year)

15.2% of revenue

In line with sector average (12%)

Investing heavily in future products and technology

Insider Activity

9.7%ownership

Insiders own a meaningful stake in the company

Cash Runway

5+ years

Quarterly Free Cash Flow

↓ Burn rate worsening

$242.7B cash & investments at current burn rate

Heavy R&D investment

Alphabet is putting 15% of revenue into R&D and that number is rising. With 10+ years of cash runway, they have time to let it pay off.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

61.6%

Premium pricing power — 61.6% gross margin

Profit after running costs

Operating Margin

34.0%

Excellent — 34.0% operating margin

Return on the money invested

ROCE

20.0%

Strong — 20.0% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+20.0%

Fast-growing sales (+20.0% YoY)

Profit growth

EPS YoY

+106.8%

Earnings growing fast (+106.8% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

76%

Modest — 76% of profit becomes cash

Spare cash per sale

FCF Margin

11.9%

Modest free cash flow (11.9%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.15

Conservative — low debt load (0.15)

Covers its interest

Interest Cover

65.64x

Comfortably covers interest (65.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

14.5x

Attractive valuation — P/E 14.5

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

-5.1

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend

Dividend Yield

0.25%

Small dividend — 0.25% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+1.5%

Dividend flat

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