The fundamental and technical analysis of Google LLC

This thesis assesses the investment attractiveness of Google LLC shares through a combination of fundamental and technical analysis. The aim is to evaluate whether the current market valuation corresponds to the economic reality of the company, its growth prospects, and risk profile. The fundamental part is structured as a top-down analysis: first, the macroeconomic environment is discussed, followed by key industries relevant to Google (digital advertising, mobile ecosystem, cloud, and artificial intelligence), and then the corporate level, focusing on segments, profitability, investment activity, and free cash flow generation. The valuation is performed using the discounted cash flow (DCF) method based on FCFF with WACC discounting derived from CAPM and supplemented by relative valuation against historical levels and a peer group. In addition, the Fama–French three-factor model is used to interpret the systematic risk exposures of the stock. The technical section evaluates the trend, moving averages, and RSI indicator on a weekly time frame, with an emphasis on market momentum and entry timing. The results show a financially very strong company with significant long-term growth drivers, but with a valuation implying increased market expectations; at the same time, technical indicators signal a strong growth trend with an increased risk of a short-term correction, which supports a more cautious timing of the purchase.