According to Zhito Finance APP, Google's parent company Alphabet (GOOG.US, GOOGL.US) has risen by nearly 38% over the past 12 months, outperforming Apple (AAPL.US) and Microsoft (MSFT.US). As Alphabet's stock price reaches a historical high of about $200 per share, Analysts have begun to worry whether its valuation has peaked.

Overall, Wall Street remains bullish on Alphabet, with an average Target Price at historical highs.

After Alphabet's revenue and profit for the third quarter of 2024 easily exceeded market expectations, several brokerages including Morgan Stanley, Evercore ISI, Jefferies Financial, and Wedbush reaffirmed their bullish stance on Alphabet and raised their Target Price.

Although Alphabet's stock price has surged recently, its relative valuation seems favorable for the stock's long-term trend.

Stone Fox Capital, head of Seeking Alpha investment group, said this week: “Despite the high valuation, this stock remains attractive, especially compared to other seven tech giants.” He reaffirmed a "Strong Buy" rating for Alphabet. This Analyst believes that Alphabet's expected PE is around 22 times, while Apple and Microsoft's expected PE are both around 30 times.

Seeking Alpha Analyst Star Investments also raised a similar point. Compared to peers like Amazon and NVIDIA, Alphabet has the lowest PE, and compared to its 7-year and 10-year median PE, Alphabet's stock price is significantly discounted.

Star Investments adds, "Investors interested in purchasing steady growth opportunities at reasonable prices with strong risk tolerance should consider buying Alphabet now."

Seeking Alpha analyst Luca Socci believes that the value of Alphabet's autonomous taxi division is hardly reflected in the company's Market Cap. Socci stated this week, "Alphabet appears to be undervalued, with the potential for valuation multiples to expand, especially if Waymo continues on its growth trajectory."

Some analysts also hold skeptical views. DT Invest recently assigned a "Hold" rating to Alphabet, stating, "The stock is currently around $190 per share, and the valuation seems almost perfect. In other words, the potential for the stock to rise from current levels is very limited."

Seeking Alpha analyst Hunting Alpha believes that Alphabet stocks face resistance points and issued a "Hold" rating.

TipRanks data shows that Wall Street analysts have assigned Alphabet (GOOGL.US) a "Strong Buy" rating, with an average Target Price of $212.64, which is 11% higher than the current stock price level.