GOOG Super Cheap trading at 18x 2023 Earnings (Patreon)

Summary

• We remain big fans of Alphabet's shares and value them at $3,146 each. The company is a net cash-rich, free cash flow-generating, secular-growing powerhouse.
• Alphabet's share price is down in the dumps trading at just $2,370, which according to Yahoo Finance consensus earnings numbers, is just ~18x 2023 estimates.
• For a company that has a huge net cash position and generates tremendous gobs of free cash flow, the multiple assigned to the market price for shares is too low.
• Its core digital advertising business, its high-growth Google Cloud unit, and its longer-term bets such as the self-driving company Waymo underpin our expectations that Alphabet will continue to grow its revenues at a nice premium to global GDP growth for some time to come.
• We think long-term shareholders may be well-rewarded by considering shares of Alphabet at these levels.