Google‘s CAPE ratio

The CAPE ratio for Google (Alphabet) compares its current stock price to the average inflation-adjusted earnings over the past 10 years. Given Google’s strong growth in advertising and its expansion into other tech sectors, its CAPE ratio is often higher than traditional value stocks. A high CAPE suggests the stock might be overvalued, with lower future returns, while a low CAPE could signal potential undervaluation. Investors use the CAPE ratio to gauge whether Google’s long-term earnings justify its current stock price, keeping in mind its growth-driven business model.