Alibaba Group Valuation
| BABA Stock | USD 135.14 1.77 1.29% |
At this time, the firm appears to be fairly valued. Alibaba Group Holding shows a prevailing Real Value of $129.97 per share. The current price of the firm is $135.14. Our model approximates the value of Alibaba Group Holding from analyzing the firm fundamentals such as Current Valuation of 288.95 B, return on equity of 0.1, and Profit Margin of 0.12 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Alibaba Group's valuation include:
Price Book 2.3186 | Enterprise Value | Enterprise Value Ebitda 12.3354 | Price Sales 0.3375 | Forward PE 13.369 |
Fairly Valued
Today
Please note that Alibaba Group's price fluctuation is very steady at this time. Calculation of the real value of Alibaba Group Holding is based on 3 months time horizon. Increasing Alibaba Group's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Alibaba Group is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Alibaba Stock. However, Alibaba Group's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 135.14 | Real 129.97 | Target 121.22 | Hype 141.22 | Naive 139.22 |
The real value of Alibaba Stock, also known as its intrinsic value, is the underlying worth of Alibaba Group Holding Company, which is reflected in its stock price. It is based on Alibaba Group's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Alibaba Group's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Alibaba Group Holding helps investors to forecast how Alibaba stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Alibaba Group more accurately as focusing exclusively on Alibaba Group's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Alibaba Group's intrinsic value based on its ongoing forecasts of Alibaba Group's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Alibaba Group's closest peers. If more than one evaluation category is relevant for Alibaba Group we suggest using both methods to arrive at a better estimate.
Alibaba Group Cash |
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Alibaba Valuation Trend
Comparing Alibaba Group's enterprise value against its market capitalization is a good way to estimate the value of Alibaba Group Holding uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
Alibaba Group Total Value Analysis
Alibaba Group Holding is currently forecasted to have valuation of 288.95 B with market capitalization of 331.35 B, debt of 205.61 B, and cash on hands of 193.09 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Alibaba Group fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
288.95 B | 331.35 B | 205.61 B | 193.09 B |
Alibaba Group Investor Information
About 15.0% of the company shares are held by institutions such as insurance companies. The book value of Alibaba Group was currently reported as 432.52. The company has Price/Earnings To Growth (PEG) ratio of 0.76. Alibaba Group Holding recorded earning per share (EPS) of 6.89. The entity last dividend was issued on the 13th of June 2024. Based on the analysis of Alibaba Group's profitability, liquidity, and operating efficiency, Alibaba Group Holding is performing exceptionally good at the moment. It has a great risk to report excellent financial results in April.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.28 | 0.2765 |
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| Total Cash From Operating Activities | 220.5 B | 210 B |
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| Operating Income | 136.9 B | 130.4 B |
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Alibaba Group Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Alibaba Group has an asset utilization ratio of 53.33 percent. This suggests that the Company is making $0.53 for each dollar of assets. An increasing asset utilization means that Alibaba Group Holding is more efficient with each dollar of assets it utilizes for everyday operations.Alibaba Group Ownership Allocation
Alibaba Group holds a total of 2.38 Billion outstanding shares. Almost 85.46 percent of Alibaba Group outstanding shares are held by general public with 0.01 (percent) owned by insiders and only 14.53 % by other corporate entities. On March 11, 2025, Representative Rob Bresnahan of US Congress acquired under $15k worth of Alibaba Group Holding's common stock.Alibaba Group Profitability Analysis
The company reported the previous year's revenue of 941.17 B. Net Income was 71.33 B with profit before overhead, payroll, taxes, and interest of 381.01 B.Alibaba Group Past Distributions to stockholders
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Alibaba Group's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Alibaba Group and how it compares across the competition.
About Alibaba Group Valuation
The stock valuation mechanism determines Alibaba Group's current worth on a weekly basis. Our valuation model uses a comparative analysis of Alibaba Group. We calculate exposure to Alibaba Group's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Alibaba Group's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 408.1 B | 428.5 B | |
| Pretax Profit Margin | 0.31 | 0.36 | |
| Operating Profit Margin | 0.28 | 0.28 | |
| Net Profit Margin | 0.26 | 0.31 | |
| Gross Profit Margin | 0.83 | 0.69 |
A single share of Alibaba Group represents a small ownership stake in the entity. As a stockholder of Alibaba, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Alibaba Group Dividends Analysis For Valuation
Please note that Alibaba Group has scaled down on payment of dividends at this time. At present, Alibaba Group's Retained Earnings are projected to increase significantly based on the last few years of reporting. The current year's Price Earnings To Growth Ratio is expected to grow to 22.90, whereas Earnings Yield is forecasted to decline to 0.0004.
There are various types of dividends Alibaba Group can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Alibaba shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Alibaba Group Holding directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Alibaba pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Alibaba Group by the value of the dividends paid out.
Alibaba Group Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 20.4 B | |
| Quarterly Earnings Growth Y O Y | 2.608 | |
| Forward Price Earnings | 13.369 |
Alibaba Group Current Valuation Indicators
Valuation refers to the process of determining the present value of Alibaba Group Holding and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Alibaba we look at many different elements of the entity such as Alibaba's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Alibaba Group, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Alibaba Group's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Alibaba Group's worth.Complementary Tools for Alibaba Stock analysis
When running Alibaba Group's price analysis, check to measure Alibaba Group's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alibaba Group is operating at the current time. Most of Alibaba Group's value examination focuses on studying past and present price action to predict the probability of Alibaba Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alibaba Group's price. Additionally, you may evaluate how the addition of Alibaba Group to your portfolios can decrease your overall portfolio volatility.
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