No. of Recommendations: 8
These links have plots of Price/Sales versus forward one year, two year, and three year CAGR for GOOG:
1 year
https://www.dropbox.com/scl/fi/l4y2mg691o8p8do3bnv...2 year
https://www.dropbox.com/scl/fi/fje2cm5tisuy5pc04h2...3 year
https://www.dropbox.com/scl/fi/ol8lkdwrygkn38ojp4e...Price/Sales data is from macrotrends.com, from 2009-12-31 through 2025-03-05.
GOOG share price is at 165 as I type and TTM Revenue per Share as of Dec 2024 was 26.25 (per macrotrends), so the P/S stands today at 6.3
The forward CAGRs have been averaged following (somewhat) Jim's practice of removing endpoint price effects. I averaged over two months. For example, to compute a one year averaged forward CAGR I first compute all the CAGRs from dates two months (40 trading days) prior to the one year mark through two months after the one year mark, and average those CAGRs. Same process for 2 and 3 year averaged forward CAGRs. The colors in the plots denote dates, I may do something with that info later.
I'm sanguine about Alphabet's ability to adapt to the evolving search/AI landscape, and they're into other leading edge areas as well.
