The Trust Layer for Market Analysts

Alphabet's intrinsic value per share is estimated at $354.21, which is below its current market price of $387.66. This suggests that Alphabet is currently overvalued based on this discounted cash flow analysis. The analysis considers various factors including free cash flows, cost of debt, cost of equity, and market risk premium, with an assumed long-term growth rate. The projections indicate declining free cash flows from 2025 onwards, with a significant drop in 2026 and a subsequent slower growth rate. The company's market risk premium is estimated at 6%, and its beta at 1.05. The capital structure is assumed to be 25% debt and 75% equity. The discount rate (WACC) used is 9.55%. The analysis highlights that a lower market risk premium would lead to a higher intrinsic value, but even with a 4% risk premium, the stock remains overvalued relative to the current market price.