Alphabet:

Current Share Price: $165.07

Market Cap: $2.02T

12-Month High Price: $191.75

12-Month Low Price: $120.21

12-Month Average Wall Street Price Target: $205.18

Microsoft:

Current Share Price: $418.38

Market Cap: $3.11T

12-Month High Price: $465.35

12-Month Low Price: $309.45

12-Month Average Wall Street Price Target: $504.23

As of the most recent financial quarter in August 2024, Alphabet (Google) and Microsoft present distinct valuations based on their price-to-earnings (P/E) ratios. Alphabet’s P/E ratio is approximately 23.38, meaning investors pay $23.38 for every dollar of earnings, making it relatively more attractive for those seeking a lower entry point with growth potential. On the other hand, Microsoft’s P/E ratio is around 35.65, reflecting a higher valuation due to strong market confidence in its cloud and AI sectors. While Alphabet appears more affordable, Microsoft’s premium reflects its robust growth prospects.

Nonetheless, from a value perspective based on P/E ratios, Alphabet appears to be the better option currently, as it is priced more attractively relative to its earnings.

(Data and information sourced from IG and Yahoo Finance: IG.co.uk, yahoofinance.com)