Alphabet Inc. (GOOGL): Fast Fundamental Analysis | FAST Graphs

Alphabet $GOOGL, a.k.a. Google is not your ordinary company or stock. This is a powerful growth stock that despite its near $2 trillion market cap continues to grow at a high rate. Although the stock is not necessarily inexpensive or cheap, it still represents a solid investment opportunity for long-term capital appreciation. Earnings forecasts over the next 5 years range between a low of 20% to a high of 28% per annum. Consequently, I consider Alphabet Inc. a stock that investors can continuously accumulate.

In this video I run GOOGL through the key metrics I utilize to determine whether a common stock is attractively valued or not. The 16 points that I utilize for my preliminary research and due diligence effort are as follows:

FAST Fundamental Analysis

1. Earnings Growth
2. Valuation
3. Dividend Growth Trend (If Any)
4. Reasonable Return Expectations
5. Investment Grade Credit Rating (BBB- or better)
6. Free Cash Flow ＞Dividend
7. Cash Flow from Operations Growth Trend (3-5 Years Minimum)
8. Cash Flow from Operations (CFO) – Higher than Net Income
9. Sales Growth Trend (3-5 Years Minimum)
10. Net Income Growth Trend (3-5 Years Minimum)
11. Debt to Equity Ratio – 1 to 1 (Industry Norms)
12. Gross Margin versus Net Margin (Industry Norms)
13. Asset Turnover (Assets/Sales)
14. Return on Assets ＞10% or Better
15. Return on Equity ＞15% or Better
16. Operating Earnings Margin (EBIT/Sales)

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