Prediction: Alphabet Could Reach This Valuation by 2028
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By Prosper Junior Bakiny – Dec 11, 2025 at 4:41AMKey PointsRelatively speaking, Alphabet isn't too far from a $5 trillion market cap.The company is reasonably valued, which could allow it to perform well in the medium term.Alphabet's strong business makes it a top stock to hold over the long term. These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: GOOGAlphabetMarket Cap$3.9TToday's Changeangle-down(1.02%) $3.25Current Price$321.00Price as of December 10, 2025 at 4:00 PM ETThe tech giant looks unstoppable right now.Alphabet (GOOG +1.02%) (GOOGL +1.01%) is part of the exclusive group of companies worth more than $1 trillion -- but there's only one member that has ever reached a $5 trillion market cap: Nvidia. However, in my view, there's a good chance that Alphabet will also be able to claim this achievement by the end of 2028. Image source: Getty Images. It's not that far off Alphabet's current market cap is $3.8 trillion. So, the $5 trillion milestone doesn't seem out of reach at all. The stock would need to achieve a compound annual growth rate of about 9.6% through December 2028 to pull that off. That's in the neighborhood of the average returns for the broader U.S. equities market over the long run -- and Alphabet is no average company. True, we're talking about a three-year period, and a lot can happen in that time that would sink its stock price. However, there is yet another reason I believe Alphabet could get to $5 trillion. ExpandNASDAQ: GOOGAlphabetToday's Change(1.02%) $3.25Current Price$321.00Key Data PointsMarket Cap$3874BDay's Range$315.40 - $321.8752wk Range$142.66 - $328.67Volume47KAvg Vol23MGross Margin59.18%Dividend Yield0.26% The valuation looks reasonable If we compare Alphabet's valuation to those of its fellow Magnificent Seven" giants, a clear picture seems to emerge: It is one of the more reasonably valued members. Its forward price-to-earnings ratio is the second lowest in the group. GOOG PE Ratio (Forward) data by YCharts. Even looking at these megacaps' price/earnings-to-growth (PEG) ratios, Alphabet still appears to be one of the most attractive among them. Meanwhile, its revenue growth rate was in the middle of the pack as of the last quarter. It now generates the highest quarterly net income and also boasts competitive profit margins compared to its Magnificent Seven peers. GOOG Revenue (Quarterly YoY Growth) data by YCharts. Alphabet's apparently more reasonable valuation today could position it for better share price returns over the next few years.Advertisement A significant tailwind Alphabet's financial results should also remain strong through 2028. The company remains the leader in the online search space thanks to Google, which generates substantial ad revenue. However, over the past two years, Alphabet has improved its operations thanks to artificial intelligence (AI). Adding AI Mode and AI Overviews to its search engine helped Alphabet fend off the threat to search volume posed by AI chatbots. It also started offering a suite of AI services through its cloud business (its fastest-growing segment) and is using AI-powered algorithms to increase engagement on YouTube, which helps boost ad sales. AI is proving to be a significant growth driver for Alphabet, and this trend should continue through 2028 and beyond, considering we are still arguably in the early stages of the AI revolution. This is a key reason that investors should consider holding Alphabet's stock even beyond the next three years.About the AuthorProsper Junior Bakiny is a contributing Motley Fool healthcare analyst covering biotechnology, pharmaceuticals, and healthcare stocks.
Before The Motley Fool, Prosper wrote about investing topics ranging from stock market news to private equity for various companies. He holds a master’s degree in corporate finance from the University of Maryland Global Campus.TMFPBakinyRead NextDec 10, 2025 •By Jennifer SaibilThese Could Be 3 of the Best Stocks to Own in 2026Dec 10, 2025 •By John Ballard1 Artificial Intelligence (AI) Stock That Should Be on Every Investor's Holiday ListDec 10, 2025 •By Jeff SantoroPrediction: Why Alphabet Will Be the Artificial Intelligence (AI) Winner of 2026Dec 9, 2025 •By Johnny RiceAlphabet Stock Jumped 13.9% In November. What's Next?Dec 9, 2025 •By Lawrence NgaIs Gemini Enterprise a Game Changer for Alphabet?Dec 9, 2025 •By Parkev Tatevosian, CFAIs Alphabet Stock a Buying Opportunity for 2026?