ALIBABA GROUP HOLDING-SP ADR (BABA) Fundamental Analysis & Valuation

NYSE:BABA • US01609W1027

Current stock price

122.41 USD
-2.49 (-1.99%)
At close:
124 USD
+1.59 (+1.3%)
Pre-Market:

This BABA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. BABA Profitability Analysis

1.1 Basic Checks

  • BABA had positive earnings in the past year.
  • BABA had a positive operating cash flow in the past year.
  • BABA had positive earnings in each of the past 5 years.
  • BABA had a positive operating cash flow in each of the past 5 years.
BABA Yearly Net Income VS EBIT VS OCF VS FCFBABA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B 200B

1.2 Ratios

  • BABA has a better Return On Assets (4.94%) than 70.00% of its industry peers.
  • The Return On Equity of BABA (8.93%) is better than 63.33% of its industry peers.
  • BABA has a Return On Invested Capital (4.77%) which is comparable to the rest of the industry.
  • BABA had an Average Return On Invested Capital over the past 3 years of 7.36%. This is in line with the industry average of 8.83%.
Industry RankSector Rank
ROA 4.94%
ROE 8.93%
ROIC 4.77%
ROA(3y)5.28%
ROA(5y)5.68%
ROE(3y)9.41%
ROE(5y)10.16%
ROIC(3y)7.36%
ROIC(5y)6.62%
BABA Yearly ROA, ROE, ROICBABA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • BABA has a better Profit Margin (9.13%) than 86.67% of its industry peers.
  • BABA's Profit Margin has declined in the last couple of years.
  • BABA has a better Operating Margin (8.59%) than 73.33% of its industry peers.
  • In the last couple of years the Operating Margin of BABA has declined.
  • BABA has a Gross Margin of 40.76%. This is comparable to the rest of the industry: BABA outperforms 50.00% of its industry peers.
  • BABA's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 8.59%
PM (TTM) 9.13%
GM 40.76%
OM growth 3Y9.62%
OM growth 5Y-4.68%
PM growth 3Y21.4%
PM growth 5Y-15%
GM growth 3Y2.73%
GM growth 5Y-2.4%
BABA Yearly Profit, Operating, Gross MarginsBABA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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4

2. BABA Health Analysis

2.1 Basic Checks

  • BABA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for BABA has been reduced compared to 1 year ago.
  • Compared to 5 years ago, BABA has less shares outstanding
  • Compared to 1 year ago, BABA has a worse debt to assets ratio.
BABA Yearly Shares OutstandingBABA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
BABA Yearly Total Debt VS Total AssetsBABA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500B 1T 1.5T

2.2 Solvency

  • An Altman-Z score of 2.75 indicates that BABA is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.75, BABA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
  • BABA has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
  • With a decent Debt to Equity ratio value of 0.23, BABA is doing good in the industry, outperforming 70.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF N/A
Altman-Z 2.75
ROIC/WACC0.57
WACC8.38%
BABA Yearly LT Debt VS Equity VS FCFBABA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B 800B 1T

2.3 Liquidity

  • A Current Ratio of 1.33 indicates that BABA should not have too much problems paying its short term obligations.
  • BABA's Current ratio of 1.33 is in line compared to the rest of the industry. BABA outperforms 43.33% of its industry peers.
  • A Quick Ratio of 1.33 indicates that BABA should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.33, BABA perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.33
Quick Ratio 1.33
BABA Yearly Current Assets VS Current LiabilitesBABA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. BABA Growth Analysis

3.1 Past

  • BABA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.77%.
  • The Earnings Per Share has been growing slightly by 4.28% on average over the past years.
  • The Revenue has been growing slightly by 3.56% in the past year.
  • BABA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.35% yearly.
EPS 1Y (TTM)-38.77%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-67.44%
Revenue 1Y (TTM)3.56%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%0.25%

3.2 Future

  • Based on estimates for the next years, BABA will show a small growth in Earnings Per Share. The EPS will grow by 1.11% on average per year.
  • BABA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.80% yearly.
EPS Next Y-35.64%
EPS Next 2Y-1.93%
EPS Next 3Y7.62%
EPS Next 5Y1.11%
Revenue Next Year3.55%
Revenue Next 2Y7.23%
Revenue Next 3Y8.15%
Revenue Next 5Y8.8%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
BABA Yearly Revenue VS EstimatesBABA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500B 1T 1.5T 2T
BABA Yearly EPS VS EstimatesBABA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60 80

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3

4. BABA Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 21.86 indicates a rather expensive valuation of BABA.
  • Based on the Price/Earnings ratio, BABA is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, BABA is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 13.42, the valuation of BABA can be described as correct.
  • Based on the Price/Forward Earnings ratio, BABA is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.42. BABA is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 21.86
Fwd PE 13.42
BABA Price Earnings VS Forward Price EarningsBABA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BABA indicates a somewhat cheap valuation: BABA is cheaper than 66.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.33
BABA Per share dataBABA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)5.11
EPS Next 2Y-1.93%
EPS Next 3Y7.62%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. BABA Dividend Analysis

5.1 Amount

  • BABA has a yearly dividend return of 0.84%, which is pretty low.
  • BABA's Dividend Yield is a higher than the industry average which is at 0.67.
  • With a Dividend Yield of 0.84, BABA pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 0.84%

5.2 History

  • BABA has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
BABA Yearly Dividends per shareBABA Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 1 2 3

5.3 Sustainability

  • BABA pays out 31.33% of its income as dividend. This is a sustainable payout ratio.
DP31.33%
EPS Next 2Y-1.93%
EPS Next 3Y7.62%
BABA Yearly Income VS Free CF VS DividendBABA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B
BABA Dividend Payout.BABA Dividend Payout, showing the Payout Ratio.BABA Dividend Payout.PayoutRetained Earnings

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BABA Fundamentals: All Metrics, Ratios and Statistics

ALIBABA GROUP HOLDING-SP ADR

NYSE:BABA (3/20/2026, 8:04:00 PM)

Premarket: 124 +1.59 (+1.3%)

122.41

-2.49 (-1.99%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)03-19
Earnings (Next)05-13
Inst Owners11.82%
Inst Owner Change1.54%
Ins OwnersN/A
Ins Owner Change0%
Market Cap292.24B
Revenue(TTM)1.02T
Net Income(TTM)92.81B
Analysts82.92
Price Target202.39 (65.34%)
Short Float %1.64%
Short Ratio3.24
Dividend
Industry RankSector Rank
Dividend Yield 0.84%
Yearly Dividend1.8
Dividend Growth(5Y)N/A
DP31.33%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-31.72%
Min EPS beat(2)-41.35%
Max EPS beat(2)-22.09%
EPS beat(4)0
Avg EPS beat(4)-18.18%
Min EPS beat(4)-41.35%
Max EPS beat(4)-4.14%
EPS beat(8)2
Avg EPS beat(8)-7.93%
EPS beat(12)4
Avg EPS beat(12)-3.16%
EPS beat(16)8
Avg EPS beat(16)0.26%
Revenue beat(2)1
Avg Revenue beat(2)-2.58%
Min Revenue beat(2)-5.27%
Max Revenue beat(2)0.12%
Revenue beat(4)1
Avg Revenue beat(4)-2.86%
Min Revenue beat(4)-5.27%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.67%
Revenue beat(12)2
Avg Revenue beat(12)-2.22%
Revenue beat(16)3
Avg Revenue beat(16)-1.91%
PT rev (1m)0%
PT rev (3m)-0.61%
EPS NQ rev (1m)-6.55%
EPS NQ rev (3m)-16.47%
EPS NY rev (1m)-1.97%
EPS NY rev (3m)-8.63%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.45%
Valuation
Industry RankSector Rank
PE 21.86
Fwd PE 13.42
P/S 1.98
P/FCF N/A
P/OCF 21.36
P/B 1.94
P/tB 2.6
EV/EBITDA 13.33
EPS(TTM)5.6
EY4.57%
EPS(NY)9.12
Fwd EY7.45%
FCF(TTM)-1.79
FCFYN/A
OCF(TTM)5.73
OCFY4.68%
SpS61.77
BVpS63.16
TBVpS47.12
PEG (NY)N/A
PEG (5Y)5.11
Graham Number89.21
Profitability
Industry RankSector Rank
ROA 4.94%
ROE 8.93%
ROCE 6.15%
ROIC 4.77%
ROICexc 6.26%
ROICexgc 8.29%
OM 8.59%
PM (TTM) 9.13%
GM 40.76%
FCFM N/A
ROA(3y)5.28%
ROA(5y)5.68%
ROE(3y)9.41%
ROE(5y)10.16%
ROIC(3y)7.36%
ROIC(5y)6.62%
ROICexc(3y)11.78%
ROICexc(5y)10.5%
ROICexgc(3y)18.04%
ROICexgc(5y)16.67%
ROCE(3y)9.49%
ROCE(5y)8.54%
ROICexgc growth 3Y6.92%
ROICexgc growth 5Y-3.04%
ROICexc growth 3Y11.89%
ROICexc growth 5Y2.97%
OM growth 3Y9.62%
OM growth 5Y-4.68%
PM growth 3Y21.4%
PM growth 5Y-15%
GM growth 3Y2.73%
GM growth 5Y-2.4%
F-Score5
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF N/A
Debt/EBITDA 1.83
Cap/Depr 291.55%
Cap/Sales 12.17%
Interest Coverage 250
Cash Conversion 72.69%
Profit Quality N/A
Current Ratio 1.33
Quick Ratio 1.33
Altman-Z 2.75
F-Score5
WACC8.38%
ROIC/WACC0.57
Cap/Depr(3y)116.55%
Cap/Depr(5y)110.15%
Cap/Sales(3y)5.36%
Cap/Sales(5y)5.67%
Profit Quality(3y)158.56%
Profit Quality(5y)149.1%
High Growth Momentum
Growth
EPS 1Y (TTM)-38.77%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-67.44%
EPS Next Y-35.64%
EPS Next 2Y-1.93%
EPS Next 3Y7.62%
EPS Next 5Y1.11%
Revenue 1Y (TTM)3.56%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%0.25%
Revenue Next Year3.55%
Revenue Next 2Y7.23%
Revenue Next 3Y8.15%
Revenue Next 5Y8.8%
EBIT growth 1Y-34.12%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year-17.8%
EBIT Next 3Y15.56%
EBIT Next 5Y15.73%
FCF growth 1Y-117.73%
FCF growth 3Y-4.65%
FCF growth 5Y-10.53%
OCF growth 1Y-50.53%
OCF growth 3Y4.63%
OCF growth 5Y-1.97%

ALIBABA GROUP HOLDING-SP ADR / BABA Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for ALIBABA GROUP HOLDING-SP ADR?

ChartMill assigns a fundamental rating of 4 / 10 to BABA.


What is the valuation status for BABA stock?

ChartMill assigns a valuation rating of 3 / 10 to ALIBABA GROUP HOLDING-SP ADR (BABA). This can be considered as Overvalued.


How profitable is ALIBABA GROUP HOLDING-SP ADR (BABA) stock?

ALIBABA GROUP HOLDING-SP ADR (BABA) has a profitability rating of 5 / 10.


What is the valuation of ALIBABA GROUP HOLDING-SP ADR based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ALIBABA GROUP HOLDING-SP ADR (BABA) is 21.86 and the Price/Book (PB) ratio is 1.94.


What is the financial health of ALIBABA GROUP HOLDING-SP ADR (BABA) stock?

The financial health rating of ALIBABA GROUP HOLDING-SP ADR (BABA) is 4 / 10.