Alphabet Inc. Depository Shs Repr 1/20th Conv Pfd Registered Shs (GOOGN): fair value, margin of safety and Wheel Score

Is GOOGN undervalued?

Alphabet Inc. Depository Shs Repr 1/20th Conv Pfd Registered Shs (GOOGN) closed at 49.18 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 116.30, which puts the price 58% below it. 7 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.

The 9 models disagree widely: DDM gives 12.65 while GLS Growth gives 175.44. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files GOOGN under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.

Nine valuation models for GOOGN

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Financial health is weak: GOOGN passes 0 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is 9.6 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.

Returns on capital are high - ROIC 27.9%, ROE 31.8%, ROA 22.2% - with debt at 0.14 times equity and a free-cash-flow yield of 1.3%.

The dividend yield is 0.25% with a payout ratio of 4% - a small yield that leaves most of the earnings in the business.

Institutional ownership scores 5/10, insider activity 1/10 and Congressional trading 10/10 on the GLS smart-money scales.

Wheel Score 39: No options

GOOGN has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.

Volume runs at 926k shares a day on a market cap of $288.6B, with a beta of -1.67 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 18 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

Alphabet Inc. Depository Shs Repr 1/20th Conv Pfd Registered Shs reports earnings on 27 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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