Alphabet, Inc. (GOOG, GOOGL) saw strong free cash flow margins of 23.9% in Q3, rebounding from a dip in Q2. At $289.55, the stock is up post-earnings release. Analysts project a $408 price target in the next year. Revenue hit over $100 billion, driven by Services and Cloud division growth. Capex spending increased by 84%, but FCF margins remained strong, averaging 22.66% over the last four quarters.

Analysts forecast a 13.3% revenue increase for Alphabet next year, with FCF potentially rising to $100 billion in 2026. Using a 1.93% FCF yield metric, the stock could be worth 41% more, equating to a $408 price target. Shorting OTM GOOGL puts could yield over 10.5% if repeated monthly. Alphabet appears undervalued if FCF margins remain robust.

Read more at Barchart: Alphabet Generates Strong FCF and If It Continues GOOGL Stock is 40% Undervalued