Which Magnificent Seven Stock Is Cheapest Right Now?

TL;DR: Alphabet is the cheapest Magnificent Seven stock on this year's earnings once a one-time accounting gain is removed, at a little more than 23 times, according to a Motley Fool analysis carried by Yahoo Finance. On 2027 estimates, Nvidia is cheaper at about 14 times. Which is cheapest depends on the year you measure.

The Motley Fool published the analysis on October 25, 2026. What makes it worth your time is the reason the ranking shifts. Two of the seven are booking large gains on private stakes, and those gains change how cheap they look.

Which Magnificent Seven stock is cheapest, and by what measure?

On this year's earnings, Alphabet. According to The Motley Fool, it trades at just over 16 times analysts' projected 2026 earnings of $20.59 per share. Then comes the catch.

The $20.59 includes a $6.26-per-share second-quarter accounting benefit tied to the growth of Alphabet's investments in SpaceX and Anthropic, The Motley Fool reports. Without that one-time bump, Alphabet is on track to earn $14.33 per share, a price-to-earnings ratio of a little more than 23.

That is still below Nvidia's 2026 figure of 24 and Microsoft's 27, per the same analysis. Alphabet stays at the bottom after the adjustment.

Why does the Anthropic gain matter?

A paper gain on a private stake can make a stock look cheaper than its operating business is. Alphabet isn't alone. The Motley Fool reports that $53.4 billion of Amazon's $62.6 billion in second-quarter net income came from its Anthropic holding.

Strip that out, and The Motley Fool puts Amazon at roughly 27 times 2026's anticipated profit. So two of the seven are now partly priced on the marked-up value of private AI companies, and nobody outside those companies can price a private stake the way a market prices a share.

That is familiar ground for anyone who reads private-fund reports. A mark is an opinion until a sale proves it, which is why we keep pointing readers to realized returns rather than reported ones in private equity. The same caution applies when the mark sits inside a stock you own through an index fund. Wall Street's menu sells these seven as plain public equities, and part of their earnings now rests on private valuations.

What a private stake is worth also depends on the terms of the shares behind it, a point we cover in how common and preferred stock split proceeds in a liquidation. Verify before you trust the headline multiple.

How do the seven compare on valuation?

The ranking changes depending on whether you look backward or forward. The table uses data The Motley Fool attributes to Finviz, and the forward column reflects 2027 earnings projections.

Company	Trailing P/E	Forward P/E (2027 estimates)
Nvidia	28.1	14.1
Apple	39.4	35.9
Alphabet	16.7	21.7
Microsoft	29.7	22.7
Amazon	21.1	24.6
Meta	26.3	20.6
Tesla	359.1	170.3

On the forward measure, Nvidia is cheapest at 14.1, and Meta at 20.6 edges out Alphabet at 21.7. The Motley Fool says Nvidia trades at only 14 times its expected 2027 earnings of $15.80 per share. It adds that this outlook requires a near-doubling of this year's likely profits, on year-over-year revenue growth of nearly 70%.

A low forward multiple only pays off if the forecast comes true. A trailing multiple covers only what already happened.

What should an investor take from this?

A cheap multiple is a description, not a buy signal. The Alphabet call rests on removing one accounting item. The Nvidia call rests on a profit forecast that has to nearly double. Both can be reasonable, and both can be wrong.

Downside first is the better question. If the AI payoffs arrive late, or the private marks get cut, which of these earnings estimates shrinks? Alphabet and Amazon carry the private-valuation risk. Nvidia carries the forecast risk. Bloomberg reported on October 25 that Wall Street's reaction to Meta's rising capital spending last week was violent, and that the response to any disappointment on AI spending likely won't be forgiving.

The next earnings round is the test. Watch whether Alphabet and Amazon again book large gains from their Anthropic stakes, and whether Nvidia's revenue growth supports the 2027 estimate.

Common mistakes when reading a "cheapest stock" headline

The most common one is comparing a P/E that includes a one-time gain with one that doesn't. Alphabet's 16 and its 23 describe the same company in the same year.

Mixing years does similar damage. A 2026 multiple for one stock set against a 2027 multiple for another produces a ranking that looks precise and means little.

The last is forgetting what you already own. Broad U.S. stock funds hold these names, so a "cheap" pick may just add more of what your portfolio already has, and your private holdings may lean on the same AI themes.

FAQ

Which Magnificent Seven stock is cheapest on trailing earnings? Alphabet, at 16.7 trailing, according to Finviz data cited by The Motley Fool. The source doesn't say whether that figure includes the one-time gain. Its separate estimate of just over 16 times 2026 earnings does include it, and rises to a little more than 23 without it.

Is Nvidia cheaper than Alphabet? On 2027 estimates, yes. The Motley Fool puts Nvidia at about 14 times expected 2027 earnings of $15.80 per share, against 21.7 for Alphabet. That depends on profits nearly doubling from this year.

Why did Alphabet and Amazon report big gains? Both reported gains from their stakes in Anthropic in the second quarter, according to The Motley Fool. For Amazon, $53.4 billion of $62.6 billion in net income came from the Anthropic holding. Alphabet's earnings estimate includes a $6.26-per-share benefit tied to SpaceX and Anthropic.

Does a low P/E mean a stock is a bargain? No. A low multiple can reflect a one-time gain, a weak outlook or a forecast that may not hold. It is one input, and it says nothing about your tax situation, time horizon or existing exposure.

Where to go from here

If you'd like a second set of eyes on numbers like these each week, the free AIN briefing covers public valuations and private marks from the investor's side, with the sources linked so you can check them yourself. For another look at how headline figures get shaped before they reach you, read our piece on why the alternatives forecast is marketing, not math.

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