Yes. In three historical cases cited by The Motley Fool, Alphabet’s share price was higher one year after its trailing price-to-earnings ratio fell to roughly 17: the reported gains were 120%, 56% and 47%. Those figures describe three past observations, not a reliable forecast for the next year.
What “higher a year later” refers to
The phrase comes from Keithen Drury’s May 17, 2025, article for The Motley Fool. It refers to three dates when Alphabet’s trailing P/E was near 17, followed by a higher share price a year later. The article credits YCharts for the historical figures; they are reported here as the article presented them, not as independently recalculated returns.
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| Observation date | Reported P/E low | Share-price change one year later |
|---|---|---|
| November 20, 2008 | 16.2 | +120% |
| July 10, 2012 | 16.9 | +56% |
| November 2, 2022 | 16.6 | +47% |
All three pairs of figures are from The Motley Fool’s 2025 article, which attributes the data to YCharts. The cited material does not establish the underlying measurement conventions or provide a separate recalculation, so the percentages should be understood as that article’s reported historical results.
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They show that these three particular low-P/E observations were followed by substantial one-year share-price gains. They do not show that a P/E near 17 reliably predicts a rebound. Three historical examples are too limited to establish a dependable pattern, and past share-price moves cannot settle what will happen after a later valuation reading.
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A P/E ratio compares a company’s share price with its earnings over a stated period. A low trailing P/E can reflect an inexpensive share price, but it can also reflect investor concern about future earnings or business risks. The ratio alone does not explain why the market has repriced a stock or whether the underlying earnings will persist.
Why the 2025 article focused on AI and Search
At the time of publication, Drury said Alphabet was trading at approximately 17 times trailing earnings. His argument centered on concern that generative AI could weaken or replace traditional Google Search, weighing on the stock’s valuation. He also pointed to the possibility that AI-generated summaries could help keep Search relevant.
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The article reported 10% Google Search revenue growth in a prior quarter, attributing the figure to Alphabet management, but the passage did not identify the quarter. It is therefore a dated claim from that article, not a current growth rate. The article’s broader thesis was that continued growth could support a higher valuation if investors’ concerns proved too severe.
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How to interpret the author’s recommendation
Drury concluded in May 2025 that Alphabet was a “strong buy,” based on his view that persistent double-digit growth and valuation-multiple expansion could benefit the shares. That was the contributing analyst’s opinion at that time, not a conclusion established by the three historical returns or a current investment recommendation.
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The Motley Fool article disclosed that Drury held Alphabet shares and that The Motley Fool held and recommended Alphabet. Those disclosures are relevant context for readers weighing its bullish view.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Where to check Alphabet’s current position
The May 2025 article cannot establish Alphabet’s current valuation, results, or competitive position. For current company information, use Alphabet Investor Relations to find earnings releases, financial results, and SEC filings. Consider current earnings and business risks alongside valuation rather than inferring today’s outlook from the three past cases.
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