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Alphabet Inc
NASDAQ:GOOGL

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Alphabet Inc
NASDAQ:GOOGL
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Price: 344.4 USD 1.63% Market Closed
Market Cap: $4.2T

ROIC

28%
Current
Declining
by 1.5%
vs 3-y average of 29.5%

Return on Invested Capital (ROIC) measures how efficiently a company generates profit from the capital it invests in its business. It shows how well the company turns invested funds into returns for investors.

ROIC
28%
=
NOPAT
$112.5B
/
Avg Invested Capital
$401.4B

Return on Invested Capital (ROIC) measures how efficiently a company generates profit from the capital it invests in its business. It shows how well the company turns invested funds into returns for investors.

ROIC
28%
=
NOPAT
$112.5B
/
Avg Invested Capital
$401.4B

Peer Comparison

Country Company Market Cap ROIC
US
Alphabet Inc
NASDAQ:GOOGL
4.2T USD
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US
Apple Inc
NASDAQ:AAPL
4T USD
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US
Microsoft Corp
NASDAQ:MSFT
3.2T USD
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US
Amazon.com Inc
NASDAQ:AMZN
2.8T USD
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US
Meta Platforms Inc
NASDAQ:META
1.7T USD
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US
Oracle Corp
NYSE:ORCL
498.2B USD
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US
International Business Machines Corp
NYSE:IBM
217.6B USD
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JP
SoftBank Group Corp
TSE:9984
34T JPY
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US
Salesforce Inc
NYSE:CRM
162.4B USD
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US
Snowflake Inc.
NYSE:SNOW
48.3B USD
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CN
Tencent Holdings Ltd
HKEX:700
4.5T HKD
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Market Distribution

Higher than 91% of companies in the United States of America
Percentile
91st
Based on 12 774 companies
91st percentile
28%
Low
-565 742.9% — 0%
Typical Range
0% — 9.4%
High
9.4% — 327 214.8%
Distribution Statistics
the United States of America
Min -565 742.9%
30th Percentile 0%
Median 4.7%
70th Percentile 9.4%
Max 327 214.8%

Alphabet Inc
Glance View

Alphabet Inc., birthed from the colossal success of Google, stands as a testament to the transformative power of innovation and strategic diversification. Born out of a reorganization in 2015, Alphabet was designed to segregate Google's core services, like search and advertising, from its wildly ambitious "Other Bets" ventures, such as self-driving cars, health tech, and urban innovation initiatives. This structural transformation enabled Alphabet to pursue moonshot ideas without hampering the profitability and operational focus of Google's core business. Google, undeniably the crown jewel of Alphabet's empire, drives the vast majority of the company's revenue through its dominance in digital advertising. With unparalleled reach through its search engine, YouTube, and the Google Display Network, Google captures billions in revenue by connecting advertisers with an expansive global audience. Beyond advertising, Alphabet has ventured into various sectors to broaden its revenue streams. Google Cloud, for example, has carved out a substantial niche in the competitive cloud computing industry, catering to both corporate giants and budding startups with its powerful infrastructure and artificial intelligence capabilities. Meanwhile, the company's "Other Bets," though yet to reach the financial heights of Google, represent a bold exploration into emerging technologies. Projects like Waymo seek to revolutionize transportation with autonomous vehicles, while initiatives under Verily and Calico aim to extend human life and enhance healthcare. In this way, Alphabet not only continues to fortify its dominance in the digital realm but also positions itself as a vanguard of future technological breakthroughs.

GOOGL Intrinsic Value
205.83 USD
Overvaluation 40%
Intrinsic Value
Price $344.4
What is Return on Invested Capital?
Return on Invested Capital (ROIC) measures how efficiently a company generates profit from the capital it invests in its business. It shows how well the company turns invested funds into returns for investors.
How is ROIC calculated?

ROIC is calculated by dividing the NOPAT by the Avg Invested Capital.

ROIC
28%
=
NOPAT
$112.5B
/
Avg Invested Capital
$401.4B
What is Alphabet Inc's current ROIC?

The current ROIC for Alphabet Inc is 28%, which is below its 3-year median of 29.5%.

How has ROIC changed over time?

Over the last 3 years, Alphabet Inc’s ROIC has decreased from 28.1% to 28%. During this period, it reached a low of 26.8% on Sep 30, 2025 and a high of 31.7% on Jun 30, 2024.

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