BABA PE Ratio & Valuation, Is BABA Overvalued

Historical Valuation

Alibaba Group Holding Ltd (BABA) is now in the Overvalued zone, suggesting that its current forward PE ratio of 20.30 is considered Overvalued compared with the five-year average of 12.80. The fair price of Alibaba Group Holding Ltd (BABA) is between 59.73 to 122.73 according to relative valuation method. Compared to the current price of 136.29 USD , Alibaba Group Holding Ltd By Overvalued By 11.05%.

Relative Value

Fair Zone

59.73-122.73

Current Price：136.29

11.05%

Overvalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Alibaba Group Holding Ltd (BABA) has a current Price-to-Book (P/B) ratio of 2.45. Compared to its 3-year average P/B ratio of 1.55, the current P/B ratio is approximately 58.21% higher. Relative to its 5-year average P/B ratio of 1.93, the current P/B ratio is about 26.85% higher. Alibaba Group Holding Ltd (BABA) has a Forward Free Cash Flow (FCF) yield of approximately 0.11%. Compared to its 3-year average FCF yield of 7.80%, the current FCF yield is approximately -98.61% lower. Relative to its 5-year average FCF yield of 6.96%, the current FCF yield is about -98.44% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for BABA competitors is 0.95, providing a benchmark for relative valuation. Alibaba Group Holding Ltd Corp (BABA.N) exhibits a P/S ratio of --, which is -100% above the industry average. Given its robust revenue growth of 4.85%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of BABA increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of BABA in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is BABA currently overvalued or undervalued?

Alibaba Group Holding Ltd (BABA) is now in the Overvalued zone, suggesting that its current forward PE ratio of 20.30 is considered Overvalued compared with the five-year average of 12.80. The fair price of Alibaba Group Holding Ltd (BABA) is between 59.73 to 122.73 according to relative valuation method. Compared to the current price of 136.29 USD, Alibaba Group Holding Ltd is Overvalued By 11.05%.

What is Alibaba Group Holding Ltd (BABA) fair value?

BABA's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Alibaba Group Holding Ltd (BABA) is between 59.73 to 122.73 according to relative valuation method.

How does BABA's valuation metrics compare to the industry average?

The average P/S ratio for BABA's competitors is 0.95, providing a benchmark for relative valuation. Alibaba Group Holding Ltd Corp (BABA) exhibits a P/S ratio of --, which is -100.00% above the industry average. Given its robust revenue growth of 4.85%, this premium appears unsustainable.

What is the current P/B ratio for Alibaba Group Holding Ltd (BABA) as of Mar 12 2026?

As of Mar 12 2026, Alibaba Group Holding Ltd (BABA) has a P/B ratio of 2.45. This indicates that the market values BABA at 2.45 times its book value.

What is the current FCF Yield for Alibaba Group Holding Ltd (BABA) as of Mar 12 2026?

As of Mar 12 2026, Alibaba Group Holding Ltd (BABA) has a FCF Yield of 0.11%. This means that for every dollar of Alibaba Group Holding Ltd's market capitalization, the company generates 0.11 cents in free cash flow.

What is the current Forward P/E ratio for Alibaba Group Holding Ltd (BABA) as of Mar 12 2026?

As of Mar 12 2026, Alibaba Group Holding Ltd (BABA) has a Forward P/E ratio of 20.30. This means the market is willing to pay $20.30 for every dollar of Alibaba Group Holding Ltd's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Alibaba Group Holding Ltd (BABA) as of Mar 12 2026?

As of Mar 12 2026, Alibaba Group Holding Ltd (BABA) has a Forward P/S ratio of 2.25. This means the market is valuing BABA at $2.25 for every dollar of expected revenue over the next 12 months.

BABA Valuation