Alphabet Inc (GOOGL) is slightly undervalued and Spotify Technology SA (SPOT) is overvalued.
Against our estimates of intrinsic value, GOOGL trades at the wider discount: a margin of safety of +9%, against -71% for SPOT.
Values as of the 22 Sept 2026 close.
A 10.6x revenue multiple, adjusted for growth and margin, values the shares at $386.09; the price of $351.16 is 9% below that value.
Leak Score 58/100 on 10 of 12 signals
Discounting its cash flows at 12.1% (average of 3 methods) values the shares at $292.81; the price of $501.30 is 71% above that value, and 67% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | GOOGL | SPOT |
|---|---|---|
| Verdict | Slightly undervalued | Overvalued |
| Price | $351.16 | $501.30 |
| Intrinsic value | $386.09 | $292.81 |
| Margin of safety | +9% | -71% |
| Leak Score | 58/100 (10/12) | 59/100 (3/12) |
| Market cap | $4.27T | $103.2B |
| Revenue growth, 5 years | 17.2% | 16.6% |
| Operating margin | 34.0% | 14.6% |
| Net margin | 54.7% | 18.4% |
| Return on equity | 48.7% | 44.9% |
| Debt to equity | 0.18 | 0.06 |
| P/E | 17.6x | 31.2x |
| Forward P/E | 23.2x | 28.5x |
| P/B | 6.9x | 10.8x |
| Dividend yield | 0.2% | — |