This report provides a summary of key financial metrics and growth estimates for Alphabet Inc. (GOOGLE) over the period from 2016 to 2023. The analysis covers Earnings per Share (EPS), Net Profits, Revenue, Shareholders’ Equity, and Long-Term Debt. Additionally, projections are provided for future EPS and stock price growth over the next 10 years.
1. Earnings per Share (EPS):
- Initial EPS (2016): $1.39
- Current EPS (2023): $5.97
- Annual EPS Growth Rate (CAGR): 23.15%
- Projected EPS in 10 Years: $47.89
- Estimated Stock Price in 10 Years: $814.05
- Annual Stock Price Growth Rate (CAGR): 17.45%
2. Net Profits:
- Initial Net Profits (2016): $19 billion
- Current Net Profits (2023): $73 billion
- Annual Net Profits Growth Rate (CAGR): 21.20%
3. Revenue:
- Initial Revenue (2016): $90 billion
- Current Revenue (2023): $307 billion
- Annual Revenue Growth Rate (CAGR): 19.16%
4. Shareholders’ Equity:
- Initial Equity (2016): $139 billion
- Current Equity (2023): $283 billion
- Annual Equity Growth Rate (CAGR): 10.69%
5. Long-Term Debt:
- Initial Long-Term Debt (2016): $3.94 billion
- Current Long-Term Debt (2023): $12 billion
- Annual Long-Term Debt Growth Rate (CAGR): 17.25%
- Years to Pay Off Long-Term Debt Using Net Profit: 0.16 years
Key Insights:
- EPS Growth: Google has achieved a significant EPS growth rate of 23.15%, indicating strong profitability improvements.
- Stock Price Growth: The stock price is projected to grow at a robust 17.45% CAGR, with an estimated price of $814.05 in 10 years.
- Net Profit Expansion: Net profits have grown substantially, with a 21.20% CAGR, driven by Google’s dominance in digital advertising and cloud services.
- Revenue Growth: Google’s revenue has surged at an impressive 19.16% CAGR, reflecting the company’s expanding product and service portfolio.
- Equity Strength: Shareholders’ equity has more than doubled in 7 years, growing at a steady 10.69% CAGR, showing a solid capital base.
- Debt Management: Google’s long-term debt, though growing at 17.25%, remains manageable as the company can theoretically pay off its long-term debt in just 0.16 years using net profits.