Alibaba Group Valuation

BABA Stock  USD 155.73  3.00  1.89%   
At this time, the firm appears to be fairly valued. Alibaba Group Holding shows a prevailing Real Value of $155.23 per share. The current price of the firm is $155.73. Our model approximates the value of Alibaba Group Holding from analyzing the firm fundamentals such as Current Valuation of 374.14 B, return on equity of 0.11, 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
2.5365
Enterprise Value
374.1 B
Enterprise Value Ebitda
16.0022
Price Sales
0.3744
Forward PE
17.4825
Fairly Valued
Today
155.73
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  155.73 Real  155.23 Target  198.34 Hype  155.75
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.
152.56
Downside
155.23
Real Value
157.90
Upside
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:
Earnings
Estimates
LowProjectedHigh
9.7415.2821.80
Details
Hype
Prediction
LowEstimatedHigh
153.08155.75158.42
Details
40 Analysts
Consensus
LowTarget PriceHigh
180.49198.34220.16
Details
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

133.53 Billion

Alibaba Group Total Value Analysis

Alibaba Group Holding is currently forecasted to have valuation of 374.14 B with market capitalization of 378.94 B, debt of 248.49 B, and cash on hands of 145.49 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 PriceMarket CapDebt ObligationsCash
374.14 B
378.94 B
248.49 B
145.49 B

Alibaba Group Investor Information

The book value of the company was currently reported as 64.4. The company has Price/Earnings To Growth (PEG) ratio of 2.02. Alibaba Group Holding recorded earning per share (EPS) of 7.57. The entity last dividend was issued on the 12th of June 2025. 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 March.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.280.2765
Fairly Up
Slightly volatile
Total Cash From Operating Activities199 B189.5 B
Sufficiently Up
Slightly volatile
Operating Income170.1 B162 B
Sufficiently Up
Slightly volatile

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 55.14 percent. This suggests that the Company is making $0.55 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.
 
Yuan Drop
 
Covid
 
Interest Hikes

Alibaba Group Profitability Analysis

Considering Alibaba Group's profitability and operating efficiency indicators, Alibaba Group Holding is performing exceptionally good at the moment. It has a great risk to showcase excellent profitability results in March. Profitability indicators assess Alibaba Group's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2011-06-30
Previous Quarter
40.6 B
Current Value
21 B
Quarterly Volatility
19.6 B
 
Yuan Drop
 
Covid
 
Interest Hikes
At present, Alibaba Group's Gross Profit is projected to increase significantly based on the last few years of reporting. The current year's Pretax Profit Margin is expected to grow to 0.35, whereas Gross Profit Margin is forecasted to decline to 0.68.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.680.8325
Significantly Down
Slightly volatile
Net Profit Margin0.30.2644
Moderately Up
Slightly volatile
Operating Profit Margin0.280.2765
Fairly Up
Slightly volatile
Pretax Profit Margin0.350.3071
Fairly Up
Slightly volatile
Return On Assets0.120.1157
Sufficiently Up
Slightly volatile
Return On Equity0.330.2554
Significantly Up
Slightly volatile
For Alibaba Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alibaba Group Holding to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alibaba Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alibaba Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alibaba Group over time as well as its relative position and ranking within its peers.

Alibaba Group Earnings per Share Projection vs Actual

The next projected EPS of Alibaba Group is estimated to be 15.2841 with future projections ranging from a low of 9.745 to a high of 21.80225. Alibaba Group's most recent 12-month trailing earnings per share (EPS TTM) is at 7.57. Please be aware that the consensus of earnings estimates for Alibaba Group Holding is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Yuan Drop
 
Covid
 
Interest Hikes
Alibaba Group is projected to generate 15.2841 in earnings per share on the 31st of March 2027. Alibaba Group earnings estimates show analyst consensus about projected Alibaba Group EPS (Earning Per Share). It derives the highest and the lowest estimates based on Alibaba Group's historical volatility. Many public companies, such as Alibaba Group, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Alibaba Group Earnings Estimation Breakdown

The calculation of Alibaba Group's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Alibaba Group is estimated to be 15.2841 with the future projection ranging from a low of 9.745 to a high of 21.80225. Please be aware that this consensus of annual earnings estimates for Alibaba Group Holding is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
9.74
Lowest
Expected EPS
15.2841
21.80
Highest

Alibaba Group Earnings Projection Consensus

Suppose the current estimates of Alibaba Group's value are higher than the current market price of the Alibaba Group stock. In this case, investors may conclude that Alibaba Group is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Alibaba Group's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of March 2027Current EPS (TTM)
4381.88%
0.0
15.2841
7.57

Alibaba Group Ownership Allocation

Alibaba Group holds a total of 2.39 Billion outstanding shares. Almost 87.99 percent of Alibaba Group outstanding shares are held by general public with 12.01 % by other corporate entities. On January 13, 2026, Representative Gilbert Cisneros 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 996.35 B. Net Income was 130.51 B with profit before overhead, payroll, taxes, and interest of 416.69 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 ReportedProjected for Next Year
Gross Profit457.8 B480.7 B
Pretax Profit Margin 0.31  0.35 
Operating Profit Margin 0.28  0.28 
Net Profit Margin 0.26  0.30 
Gross Profit Margin 0.83  0.68 
Alibaba Group's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Alibaba Group's value is low or high relative to the company's performance and growth projections. Determining the market value of Alibaba Group can be done in different ways, such as multiplying its stock price by its outstanding shares.
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 Outstanding2.4 B
Quarterly Earnings Growth Y O Y-0.518
Forward Price Earnings17.4825

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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