Is Alphabet, Inc. overvalued or undervalued?

As of 4 September 2025, the valuation grade for Alphabet, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 21, an EV to EBITDA of 15.23, and a PEG ratio of 0.84, suggesting that while Alphabet is performing well, it may not be significantly undervalued compared to its peers.
In comparison to its peers, Meta Platforms, Inc. has a P/E of 26.39 and an EV to EBITDA of 19.61, reflecting a more attractive valuation, while Spotify Technology SA is considered very expensive with a P/E of 92.22. Notably, Alphabet has outperformed the S&P 500 across multiple time frames, with a 1-year return of 57.71% compared to the S&P 500's 17.14%, reinforcing its strong market position despite the current valuation assessment.