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This Magnificent 7 Stock Is Absurdly Cheap – It Probably Won't Stay That Way For Long

Alphabet Corp. (NASDAQ:GOOGL), one of the most dominant players in the Magnificent 7 tech group, is now trading at a price-to-earnings ratio that's historically associated with powerful stock rallies, setting up what could be a rare buying opportunity.

What Is A P/E Ratio And Why Does It Matter?

The price-to-earnings ratio (P/E) measures how much investors are willing to pay for each dollar of a company's profit.

A lower P/E can signal that a stock is undervalued relative to its earnings, especially when compared to its historical average or industry peers.

As of July 2, Alphabet trades at 19.8 times its trailing 12-month earnings. That’s 16% below its 20-year average of 32, putting it near valuation levels rarely seen over the past two decades.

How Rare Is This Valuation Level For Alphabet?

The last time Alphabet traded at this low a P/E ratio was in May 2025, when it briefly touched 17.1x. That was just shy of the record low ...