GOOGL Trades at Its Cheapest Earnings Multiple on Record

At $338.46, GOOGL costs about 9 times sales and 17 times earnings. The sales multiple is the 2nd highest in 10 years, and the earnings multiple is the lowest in 10 years.

The reason is straightforward. Since March 2025 the share price rose 119 percent while sales only rose 24 percent.

The earnings multiple is the lowest on record.

A stock can look expensive on sales and cheap on earnings when margins are widening. That is the story here. Earnings per share rose 84%. The share price rose 8% over the same stretch. That gap lowered the earnings multiple from 28.96× to 17.06×.

How today’s multiples rank against GOOGL’s own history

The table below shows where the current price-to-sales and price-to-earnings multiples rank against GOOGL’s own history over different look-back windows.

38% From Its Median Earnings Multiple

From here, GOOGL would need to rise 38% to reach the middle of its own earnings range. Its median price-to-earnings multiple over the past five years is 23.47 times. Applied to today’s trailing earnings of $19.84 per share, that points to a price of $465.66.

The gap is narrower on the sales side. The five-year median multiple of 6.09 times, applied to trailing sales of $36.22 per share, implies a price of $220.65, or 35% lower than today’s level.

Note

“Cheap” and “expensive” in this analysis mean cheap or expensive only relative to GOOGL’s own historical range. Neither speaks to valuation versus peers or to the intrinsic value of the business. A multiple can sit at either end of that range for years if the market has simply re-rated the company.