GOOGL/Google Search — Scenario Model
Blue = input assumption|Black = computed

Google Search — Scenario Model

Current Price
$274
Google Search Component
$135/sh
Market Implies
68% chance of upside scenarios
16% collapse probability

Scenario Overview

ScenarioEV$/shProbRevenueOperating Margin %Ebit Margin %FcfKey Gate
mega bull$3.0T$24834%
bull$1.5T$12417%
base$1.1T$8816%
bear$650B$5416%
collapse$389B$3216%

Full Year-by-Year Models

Blue = input · Black = computed · Click to expand

Market-Implied Probability Reconciliation

Given these scenario EVs, what probability weights would the market need to assign to produce the current market-implied value of $135/share?

ScenarioSearch Segment EVPer ShareImplied Prob.Weighted Contrib.
mega bull$3.0T$24834.3%$85
bull$1.5T$12417.4%$22
base$1.1T$8816.1%$14
bear$650B$5416.1%$9
collapse$389B$3216.1%$5
Total100%$135/sh

Note: These probabilities apply to Google Search's contribution to Alphabet equity. Cloud, YouTube, Waymo+AI, Other Ops, and net cash contribute separately.

Target contribution: $135/sh. Residual: $0.0/sh.

Assumption Sources

revenueAnchorFY2025 $224.5B +13.4% [Alphabet 10-K]. Q4 +17% acceleration.
marginAnchor42% operating margin ex-EC fine [SEC filing]
growthDriverAI Overviews monetize at par [mgmt]. Digital ad TAM $650B→$1.6T [Precedence]
competitive90%+ share maintained. Gemini growing to 25.2% chatbot share [Fortune]
antitrustBehavioral remedies only, Chrome kept [Judge Mehta ruling]