Alphabet Generates Strong FCF and If It Continues GOOGL Stock is 40% Undervalued

Alphabet, Inc. (GOOG, GOOGL) produced strong free cash flow and FCF margins, which hit 23.9% of revenue in Q3. This was after an unexpected dip in Q2 to just 5.50%, as I discussed in a Sept. 26 Barchart article. If it keeps generating FCF margins between 20% and 22%, GOOGL stock could be worth over 40% more over the next year. This article will show why.

GOOGL is at $289.55, up after its earnings release on Oct. 29.