BABA Valuation

Alibaba Group Holding Ltd

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122.940

+4.85(4.107%)1D

Overview
Forecast
Valuation
Earnings

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 Undervalued zone, suggesting that its current forward PE ratio of 13.59 is considered Undervalued compared with the five-year average of 14.30. The fair price of Alibaba Group Holding Ltd (BABA) is between 118.24 to 206.35 according to relative valuation methord. Compared to the current price of 118.09 USD , Alibaba Group Holding Ltd is Undervalued By 0.12%.

Relative Value

Fair Zone

118.24-206.35

Current Price：118.09

0.12%

Undervalued

14.13

Trailing

Forward

8.09

EV/EBITDA

Alibaba Group Holding Ltd. (BABA) has a current EV/EBITDA of 8.09. The 5-year average EV/EBITDA is 10.67. The thresholds are as follows: Strongly Undervalued below -0.89, Undervalued between -0.89 and 4.89, Fairly Valued between 16.45 and 4.89, Overvalued between 16.45 and 22.23, and Strongly Overvalued above 22.23. The current Forward EV/EBITDA of 8.09 falls within the Historic Trend Line -Fairly Valued range.

9.27

EV/EBIT

Alibaba Group Holding Ltd. (BABA) has a current EV/EBIT of 9.27. The 5-year average EV/EBIT is 18.31. The thresholds are as follows: Strongly Undervalued below -8.20, Undervalued between -8.20 and 5.05, Fairly Valued between 31.56 and 5.05, Overvalued between 31.56 and 44.81, and Strongly Overvalued above 44.81. The current Forward EV/EBIT of 9.27 falls within the Historic Trend Line -Fairly Valued range.

1.75

Alibaba Group Holding Ltd. (BABA) has a current PS of 1.75. The 5-year average PS is 2.47. The thresholds are as follows: Strongly Undervalued below -0.52, Undervalued between -0.52 and 0.98, Fairly Valued between 3.96 and 0.98, Overvalued between 3.96 and 5.45, and Strongly Overvalued above 5.45. The current Forward PS of 1.75 falls within the Historic Trend Line -Fairly Valued range.

9.70

P/OCF

Alibaba Group Holding Ltd. (BABA) has a current P/OCF of 9.70. The 5-year average P/OCF is 11.41. The thresholds are as follows: Strongly Undervalued below 2.23, Undervalued between 2.23 and 6.82, Fairly Valued between 16.00 and 6.82, Overvalued between 16.00 and 20.59, and Strongly Overvalued above 20.59. The current Forward P/OCF of 9.70 falls within the Historic Trend Line -Fairly Valued range.

13.42

P/FCF

Alibaba Group Holding Ltd. (BABA) has a current P/FCF of 13.42. The 5-year average P/FCF is 15.38. The thresholds are as follows: Strongly Undervalued below 0.77, Undervalued between 0.77 and 8.08, Fairly Valued between 22.69 and 8.08, Overvalued between 22.69 and 29.99, and Strongly Overvalued above 29.99. The current Forward P/FCF of 13.42 falls within the Historic Trend Line -Fairly Valued range.

Alibaba Group Holding Ltd (BABA) has a current Price-to-Book (P/B) ratio of 1.94. Compared to its 3-year average P/B ratio of 1.58 , the current P/B ratio is approximately 22.80% higher. Relative to its 5-year average P/B ratio of 2.36, the current P/B ratio is about -17.62% higher. Alibaba Group Holding Ltd (BABA) has a Forward Free Cash Flow (FCF) yield of approximately 4.05%. Compared to its 3-year average FCF yield of 8.49%, the current FCF yield is approximately -52.30% lower. Relative to its 5-year average FCF yield of 7.11% , the current FCF yield is about -43.05% lower.

2.02

P/B

Median3y

1.58

Median5y

2.36

4.10

FCF Yield

Median3y

8.49

Median5y

7.11

Competitors Valuation Multiple

The average P/S ratio for BABA's competitors is 2.39, providing a benchmark for relative valuation. Alibaba Group Holding Ltd Corp (BABA) exhibits a P/S ratio of 1.75, which is -26.62% above the industry average. Given its robust revenue growth of 5.28%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

BABA.N

Alibaba Group Holding Ltd

Performance Decomposition

Market capitalization of BABA increased by 47.52% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 0.41 to 5.06.

The secondary factor is the Revenue Growth, contributed 5.28%to the performance.

Overall, the performance of BABA in the past 1 year is driven by Margin Expansion. Which is more sustainable.

5.28%

30.88B → 32.51B

Revenue Growth

1134.15%

0.41 → 5.06

Margin Expansion

-1091.91%

-1.66 → 16.47

P/E Change

47.52%