Alibaba Group Valuation
| BABAF Stock | USD 10.02 0.27 2.62% |
At this time, the firm appears to be overvalued. Alibaba Group Holding shows a prevailing Real Value of $8.48 per share. The current price of the firm is $10.02. Our model approximates the value of Alibaba Group Holding from analyzing the firm fundamentals such as Return On Equity of -0.0012, profit margin of 0.02 %, and Current Valuation of 203.25 B as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Alibaba Group's price fluctuation is slightly risky 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.
The fair value of the Alibaba pink sheet is determined by what a typical buyer is willing to pay for full or partial control of Alibaba Group Holding. Since Alibaba Group is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Alibaba Pink Sheet. 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 10.02 | Real 8.48 | Hype 10.02 | Naive 9.88 |
The real value of Alibaba Pink Sheet, 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 pink sheet'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: Alibaba Group Total Value Analysis
Alibaba Group Holding is currently forecasted to have takeover price of 203.25 B with market capitalization of 280.88 B, debt of 132.5 B, and cash on hands of 463.28 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Alibaba Group fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
203.25 B | 280.88 B | 132.5 B | 463.28 B |
Alibaba Group Investor Information
About 30.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 1.83. Some equities with similar Price to Book (P/B) outperform the market in the long run. Alibaba Group Holding has Price/Earnings To Growth (PEG) ratio of 1.23. The entity had not issued any dividends in recent years. Based on the analysis of Alibaba Group's profitability, liquidity, and operating efficiency, Alibaba Group Holding is not in a good financial situation at this time. It has a very high probability of going through financial hardship in February.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 50.31 percent. This implies that the Company is making $0.5 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 21.18 Billion outstanding shares. Alibaba Group Holding retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Alibaba Group Profitability Analysis
The company reported the revenue of 853.06 B. Net Income was 62.25 B with profit before overhead, payroll, taxes, and interest of 314.36 B.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 pink sheet 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.Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the Peoples Republic of China and internationally. The company was incorporated in 1999 and is based in Hangzhou, the Peoples Republic of China. Alibaba Group operates under Internet Retail classification in the United States and is traded on OTC Exchange. It employs 245700 people.
8 Steps to conduct Alibaba Group's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Alibaba Group's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Alibaba Group's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Alibaba Group's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Alibaba Group's revenue streams: Identify Alibaba Group's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Alibaba Group's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Alibaba Group's growth potential: Evaluate Alibaba Group's management, business model, and growth potential.
- Determine Alibaba Group's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Alibaba Group's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Alibaba Group Growth Indicators
Investing in growth stocks can be very risky. If the company such as Alibaba Group does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 21.4 B | |
| Quarterly Earnings Growth Y O Y | -0.482 | |
| Forward Price Earnings | 10.1317 | |
| Retained Earnings | 573.4 B |
Complementary Tools for Alibaba Pink Sheet 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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