Investment Bank Suggests That Alphabet (GOOG)’s Valuation Could Climb Significantly

Investment bank TD Cowen, focusing on the potential of Alphabet Inc. (NASDAQ:GOOG)'s Waymo, kept a $195 price target and a Buy rating on GOOG recently.

TD Cowen's Analysis of Waymo

The investment bank predicts that the U.S. gross bookings of Waymo, Alphabet Inc. (NASDAQ:GOOG)'s self-driving subsidiary, will jump to $6.1 billion in 2034, up from $230 million this year. That equates to a compound annual growth rate of 44% during those years.

In light of those estimates, TD Cowen has assigned Waymo an enterprise value of $60 billion.

Other Assets Have Strong Potential

The company's DeepMind/GenAI businesses are currently valued at $130 billion, but that number could rise, wrote TD Cowen, noting that OpenAI was recently assigned a valuation of $300 billion. Additionally, TD Cowen suggested that Alphabet Inc. (NASDAQ:GOOG)'s integration of GenAI in many of its businesses, along with its significant investments in GenAI, can boost its valuation.

Finally, Google's cloud unit is currently valued at an enterprise value-to-sales ratio of just eight, based on its expected 2026 revenue, according to the investment bank. If the multiple increases to 11, in-line with the valuation of Microsoft's (NASDAQ:MSFT) cloud business, Alphabet Inc. (NASDAQ:GOOG)'s total valuation would climb by about 7%, the investment bank estimated.

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Disclosure: None. This article is originally published at Insider Monkey.