Alphabet

ABEA.F

Internet Content & Information · Communication Services

Price

€301.55

-23.20 (-7.14%)

Market Cap

€3.65T

Exchange

Frankfurt Stock Exchange

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

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)

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 products serve billions of everyday users, businesses, and advertisers across nearly every country.

Most of Alphabet's revenue comes from selling digital advertising — when businesses pay to show ads in Google Search results or on YouTube. Google Cloud adds a growing stream of subscription and usage-based income from companies storing data and running software online. Alphabet operates globally, with the vast majority of internet users worldwide touching its products daily, giving it a powerful network effect and data advantage over competitors. The key growth driver is Google Cloud, which is expanding quickly but still trails Amazon Web Services and Microsoft Azure in market share — meaning both opportunity and competitive pressure lie ahead.

Winston Score History

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

+21.5% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+65.9% 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

10.7%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$233.3B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

Alphabet is putting 15% of revenue into R&D and that number is rising. And they're generating enough cash to self-fund it.

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

Gross Margin

62.5%

Premium pricing power — 62.5% gross margin

Operating Margin

36.2%

Excellent — 36.2% operating margin

ROCE

7.1%

Weak — 7.1% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+17.4%

Fast-growing sales (17.4% YoY)

EPS YoY

+43.8%

Earnings growing fast (43.8% YoY)

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

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

109%

Turns 109% of profit into real cash

FCF Margin

15.2%

Converts sales into free cash efficiently (15.2%)

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

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Stability

Debt / Equity

0.17

Conservative — low debt load (0.17)

Interest Cover

112.19x

Comfortably covers interest (112.2x)

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

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Valuation

P/E Ratio (TTM)

22.8x

Growth-priced — P/E 22.8

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+4.7

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (22.8 → 18.1)

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Dividends

Dividend Yield

0.24%

Small dividend — 0.24% yield

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

Dividend Growth

-0.1%

Dividend cut (-0.1% YoY) — warning sign

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