Alphabet's scores describe a business with unusually strong fundamentals. A moat score of 94 and management score of 100 line up with a 21.8% return on invested capital, a 59.7% gross margin, and debt to equity of just 0.1x, all pointing to a company that earns high returns on capital without leaning on debt. The margin of safety score of 83 reflects a price of $343.80 against a consensus buy price of $285.60.
The valuation rests on a growth rate of 15.0%, which the model deliberately capped below the 17.0% actually measured from history, applied against a 28.7x exit multiple. The 10-cap price of $75.55 and payback time price of $119.26 sit far below the current share price, while the current P/E of 17.3x is comparatively modest.
The tension is between quality and price. The underlying returns and balance sheet are as strong as the scores suggest, but the current price sits above the margin of safety threshold, meaning it is priced for the growth and multiple assumptions to hold rather than for a discount.
| Price | $349.54 |
| Market cap | $4.2T |
| P/E ratio | 17.6x |
| Return on invested capital | 21.8% |
| Gross margin | 59.7% |
| Debt to equity | 0.14x |
| Free cash flow yield | 1.9% |
| Growth rate used | 15.0% |
| Growth rate measured | 17.0% |
| Exit multiple assumed | 28.8x |
| Company | Moat | Mgmt | Margin of safety |
|---|---|---|---|
| Meta Platforms Inc. (META) | 90 | 100 | 55 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of Alphabet Inc. rather than accepting ours.