Alphabet GOOG Class C segment SOTP

Alphabet Inc. (GOOGL)
By@grokius
Assumptions as of 2026-08-26
USD
Updated Aug 26, 2026
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Alphabet GOOG Class C segment SOTP

Alphabet Class C (GOOG) segment sum-of-the-parts after Q2 2026 results and the August 10, 2026 $25B senior notes. Google Services is valued on FY2027E after-tax operating earnings; Google Cloud on FY2027E revenue because TPU system sales make near-term Cloud NOPAT less comparable; Other Bets as a venture NPV; haircut non-marketable securities (Anthropic/SpaceX marks); net cash to common excludes long-term debt and mandatory convertible preferred. GAAP EPS is not used because Q2 included a $99.0B equity-securities gain ($6.26 of diluted EPS). FCF yield is not used because Q2 FCF was negative $5.9B on $44.9B of capex and FY2026 capex guidance is $195-205B. Price input is GOOG Class C, not GOOGL Class A. Diluted share count covers Class A, B, and C.

as of 2026-08-26

Fair value per GOOG share
$347.85
Upside/downside vs GOOG
-1.1%
Implied common equity value
$4,282
TTM free cash flow
$53.3
TTM EBITDA
$172.9
Google Services value
$2,959
Google Cloud value
$1,387
Other Bets value
$50
Net cash available to common
$126
Haircut non-marketable securities
$79
Capitalized Alphabet-level cost drag
$319
FY2027E Services after-tax operating earnings
$147.9
FY2027E Cloud revenue
$138.7

Balance sheet

$242.474$B
$98.165$B
$131.461$B
$25.0$B
$18.023$B

Corporate

10.0%
15
16.5%

Google Cloud

40.0%
10

Google Services

12.0%
20

Investments

40.0%

Market

$351.66
Latest GOOGL quote · updated Oct 9, 2026 2:00 PM MDT
12.309B

Other Bets

$50$B

Reported facts

$5.789$B
$24.768$B
$39.544$B
$172.865$B
$53.273$B

Sources

  1. Q2 2026 revenue $119.796B; Google Services $94.540B revenue and $39.544B operating income; Google Cloud $24.768B revenue and $8.814B operating income; Alphabet-level activity loss $5.789B; Other Bets operating loss $1.799B; other income $97.983B including $99.031B net equity-securities gain equal to $6.26 of diluted EPS. — sec.gov (accessed 2026-08-26)
  2. June 30, 2026 cash, cash equivalents and marketable securities $242.474B; long-term debt $98.165B; mandatory convertible preferred $18.023B; non-marketable securities $131.461B; diluted weighted-average common shares 12.309B; Q2 FCF negative $5.855B; TTM FCF $53.273B; TTM operating cash flow $185.675B; TTM capex $132.402B. — sec.gov (accessed 2026-08-26)
  3. Q2 Form 10-Q confirms the same cash, debt, preferred, share, and segment figures for the quarter ended June 30, 2026. — sec.gov (accessed 2026-08-26)
  4. CFO guided FY2026 capex to $195-205B from $180-190B; Cloud backlog $514B with just over 50% expected as revenue in 24 months; TPU system sales began in Q2 with the vast majority of existing TPU agreements recognized in 2027. — youtube.com (accessed 2026-08-26)
  5. On August 10, 2026 Alphabet closed a $25B aggregate principal senior notes offering, increasing post-quarter debt and cash by about the same amount. — sec.gov (accessed 2026-08-26)
  6. GOOG Class C provider price $339.10 at 2026-08-26 20:00:01 UTC; GOOGL Class A was $342.00 at the same timestamp. — google.com (accessed 2026-08-26)

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