BABA Relative Valuation
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. If the market price exceeds this fair value range, BABA is overvalued; if below, it's undervalued.
Historical Valuation
Alibaba Group Holding Ltd (BABA) is now in the Overvalued zone, suggesting that its current forward PE ratio of 22.16 is considered Overvalued compared with the five-year average of 13.18. The fair price of Alibaba Group Holding Ltd (BABA) is between 85.37 to 156.78 according to relative valuation methord. Compared to the current price of 158.86 USD , Alibaba Group Holding Ltd is Overvalued By 1.33%.
Relative Value
Fair Zone
85.37-156.78
Current Price：158.86
1.33%
Overvalued
22.16
PE
1Y
3Y
5Y
Trailing
Forward
13.73
EV/EBITDA
Alibaba Group Holding Ltd. (BABA) has a current EV/EBITDA of 13.73. The 5-year average EV/EBITDA is 10.18. The thresholds are as follows: Strongly Undervalued below -0.22, Undervalued between -0.22 and 4.98, Fairly Valued between 15.38 and 4.98, Overvalued between 15.38 and 20.58, and Strongly Overvalued above 20.58. The current Forward EV/EBITDA of 13.73 falls within the Historic Trend Line -Fairly Valued range.
20.79
EV/EBIT
Alibaba Group Holding Ltd. (BABA) has a current EV/EBIT of 20.79. The 5-year average EV/EBIT is 17.47. The thresholds are as follows: Strongly Undervalued below -7.92, Undervalued between -7.92 and 4.77, Fairly Valued between 30.16 and 4.77, Overvalued between 30.16 and 42.86, and Strongly Overvalued above 42.86. The current Forward EV/EBIT of 20.79 falls within the Historic Trend Line -Fairly Valued range.
1120.97
PS
Alibaba Group Holding Ltd. (BABA) has a current PS of 1120.97. The 5-year average PS is 15.63. The thresholds are as follows: Strongly Undervalued below -232.38, Undervalued between -232.38 and -108.37, Fairly Valued between 139.64 and -108.37, Overvalued between 139.64 and 263.64, and Strongly Overvalued above 263.64. The current Forward PS of 1120.97 falls within the Strongly Overvalued range.
12.65
P/OCF
Alibaba Group Holding Ltd. (BABA) has a current P/OCF of 12.65. The 5-year average P/OCF is 10.98. The thresholds are as follows: Strongly Undervalued below 2.69, Undervalued between 2.69 and 6.84, Fairly Valued between 15.13 and 6.84, Overvalued between 15.13 and 19.27, and Strongly Overvalued above 19.27. The current Forward P/OCF of 12.65 falls within the Historic Trend Line -Fairly Valued range.
34.34
P/FCF
Alibaba Group Holding Ltd. (BABA) has a current P/FCF of 34.34. The 5-year average P/FCF is 15.21. The thresholds are as follows: Strongly Undervalued below 1.01, Undervalued between 1.01 and 8.11, Fairly Valued between 22.31 and 8.11, Overvalued between 22.31 and 29.41, and Strongly Overvalued above 29.41. The current Forward P/FCF of 34.34 falls within the Strongly Overvalued range.
Alibaba Group Holding Ltd (BABA) has a current Price-to-Book (P/B) ratio of 2.57. Compared to its 3-year average P/B ratio of 1.53 , the current P/B ratio is approximately 68.29% higher. Relative to its 5-year average P/B ratio of 2.10, the current P/B ratio is about 22.46% higher. Alibaba Group Holding Ltd (BABA) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 8.22%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 7.09% , the current FCF yield is about -100.00% lower.
2.57
P/B
Median3y
1.53
Median5y
2.10
1.06
FCF Yield
Median3y
8.22
Median5y
7.09
Competitors Valuation Multiple
The average P/S ratio for BABA's competitors is 620.42, providing a benchmark for relative valuation. Alibaba Group Holding Ltd Corp (BABA) exhibits a P/S ratio of 1120.97, which is 80.68% above the industry average. Given its robust revenue growth of 1.95%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of BABA increased by 80.51% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 9.88 to 17.11.
The secondary factor is the P/E Change, contributed 5.38%to the performance.
Overall, the performance of BABA in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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