Just Invest and Become Insanely Wealthy - Is Owning a Piece of Alphabet (GOOGLE) Your Dream?

Can you imagine owning a piece of the company that we all use every single day? We touch Google's products and help Google Make money or collect data every time we search using Google and click on an ad, watch an ad while watching a Youtube Video, Use an Android phone, Download apps and pay for services on Play Store, Use Google Maps and give them our data, Take a photo and upload to Google Photos, Save your files to Drive, buy and track your steps using FitBit...... and the list goes on. Alphabet the parent company of Google is arguably the world's most dominant company today and they don't seem to be going anywhere soon, considering how entrenched we are all into their ecosystem. If you wish to own a piece of this dominance, read on...

Whether you live in India, the US or anywhere in the world there are apps like IndMoney and Stockal (for Indians living in India) that you can use to invest in US shares. I have no commercial interest in these apps so do your own research before picking one to make investments in shares abroad.

Now let's dive right in and analyze whether Alphabet (Googl -Nasdaq) is worth your time and money. This is a visual analysis of Alphabet using Simply Wall Street, a visual insights tool that I have an angel investment in. I use a fun, easy, visual and commonsensical approach to stock analysis and investments. To learn this technique and learn to invest across asset classes, do buy my book Just Invest and Become Insanely Wealthy (On Amazon India or Amazon USA)

About the Company? Let's not waste a paragraph on 'About The Compan', cos probably the only people who have no idea about Google are probably the tribals living in Nicobar! :-)

So Google being Google, I am going to keep this analysis short and crisp, just so you can then do your own in-depth analysis if you so wish to or make a quick investment decision based on your own judgement.

Despite it's high share price of USD 2387 (INR 186186 Approximately Rupees One Lakhs Eighty Six Thousand and One Eight Six) in absolute terms, the snowflake shows tremendous value, health and future prospects.

The price has corrected from a max of USD 2996 to the current USD 2387 due to the ensuing market correction especially in the US markets

Now if we look at Alphabet's Price to Earnings Ration vis-à-vis the Industry Average, it is just 20.4 whereas the industry average is almost double at 40.4. This shows that Google is priced very attractively despite its high absolute share price, which too has corrected in the recent market crash.

Its PE Vs Peers is also attractive as seen in the screenshot below:

Now let's look at PE (20.9) vs Fair PE (39.5) and Current Market Price Vs Fair Price based on the discounted cashflow method. It is clear that both show a good upside possibility. While there are no guarantees, a company like Google has the dominance, depth and breadth to grow with its multiple streams of revenue. The DCF model prices the Google Share at a fair price of USD 4774! That's way higher than the current share price!

Following is the financial position and balance sheet of Alphabet, both very healthy:

Now analysts don't predict a stellar future growth, but investors must use their gut here rather than purely go based on models, in my opinion.

So there goes. Would you buy Alphabet? Don't forget that fractional ownership of shares makes it very easy to buy shares these days, even if one doesn't have enough money to buy 1 entire share of a company!

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If you are really serious about growing your wealth by learning to make investments across asset classes ranging from Equity to Debt to Gold to Agriculture to Real Estate to Revenue Based Financing to Angel Investing and more, buy my book?Just Invest and Become Insanely Wealthy?now and be amazed at how common-sensical, fun and easy investing can be.

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DISCLAIMER and DISCLOSURE:

Please note that this post is purely intended for educational purposes on intuitive investing only and not a stock recommendation. Please do your own research before making any investments in the stock market or other asset classes. Investing carries a risk of losing your capital. I am the author of a book 'Just Invest and Become Insanely Wealthy' , on this new way of investing that would help the beginner, intermediate and experienced investor become better investors across various asset classes. I have a small equity stake in Simply Wall Street.