Alphabet’s Partnership with Salesforce and AI Expansion

Alphabet has expanded its partnership with Salesforce, integrating Google's Gemini AI models more deeply into enterprise workflows. This connects Agentforce 360 with Google Workspace, broadening automation across sales and IT services. This move positions Alphabet at the center of enterprise AI adoption, with clear implications for how businesses streamline operations.

Recently, Alphabet's stock has risen by 36.9% over the past three months, delivering a 55.7% total shareholder return for the year. These figures significantly outpace the broader market. Expanded enterprise partnerships and new AI-powered launches, such as Waymo's upcoming autonomous service in London, reinforce the company's leadership in tech and innovation.

With Alphabet's AI-driven progress gaining attention, a key question arises: has the recent surge left the stock undervalued, or has the market already priced in its future growth prospects and innovation pipeline?

According to Investingwilly, Alphabet's fair value is set below the most recent closing price. This suggests that while Alphabet's dominance and growth profile are impressive, the current market places a premium above what is considered reasonable. The valuation hinges on substantial earnings growth, healthy margins, and competitive multiples.

Alphabet's price-to-earnings ratio stands at 26.5 times, higher than the US Interactive Media and Services industry average of 15.4 but below the peer average of 54. The fair ratio is calculated at 41.7. This gap reveals that while Alphabet appears pricey versus its sector, the broader peer group and fair ratio suggest there may still be room to grow.