NASDAQ:BIDU is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Our stock screening tool has identified BAIDU INC - SPON ADR (NASDAQ:BIDU) as an undervalued gem with strong fundamentals. NASDAQ:BIDU boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

How do we evaluate the Valuation for NASDAQ:BIDU?

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:BIDU has achieved a 7 out of 10:

• BIDU is valuated reasonably with a Price/Earnings ratio of 8.09.
• Based on the Price/Earnings ratio, BIDU is valued cheaper than 88.73% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 27.54. BIDU is valued rather cheaply when compared to this.
• A Price/Forward Earnings ratio of 8.59 indicates a reasonable valuation of BIDU.
• Based on the Price/Forward Earnings ratio, BIDU is valued cheaply inside the industry as 87.32% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Forward Earnings ratio of 23.99, BIDU is valued rather cheaply.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BIDU indicates a rather cheap valuation: BIDU is cheaper than 97.18% of the companies listed in the same industry.
• BIDU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BIDU is cheaper than 94.37% of the companies in the same industry.
• BIDU has a very decent profitability rating, which may justify a higher PE ratio.

A Closer Look at Profitability for NASDAQ:BIDU

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:BIDU, the assigned 7 is noteworthy for profitability:

• BIDU has a better Return On Assets (4.90%) than 78.87% of its industry peers.
• The Return On Equity of BIDU (7.88%) is better than 83.10% of its industry peers.
• BIDU has a Return On Invested Capital of 5.19%. This is in the better half of the industry: BIDU outperforms 73.24% of its industry peers.
• The last Return On Invested Capital (5.19%) for BIDU is above the 3 year average (3.96%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 15.27%, BIDU belongs to the top of the industry, outperforming 84.51% of the companies in the same industry.
• BIDU has a better Operating Margin (16.98%) than 84.51% of its industry peers.

Unpacking NASDAQ:BIDU's Health Rating

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:BIDU has earned a 5 out of 10:

• BIDU has a debt to FCF ratio of 2.35. This is a good value and a sign of high solvency as BIDU would need 2.35 years to pay back of all of its debts.
• The Debt to FCF ratio of BIDU (2.35) is better than 74.65% of its industry peers.
• BIDU has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
• A Current Ratio of 2.19 indicates that BIDU has no problem at all paying its short term obligations.
• A Quick Ratio of 2.19 indicates that BIDU has no problem at all paying its short term obligations.

Growth Analysis for NASDAQ:BIDU

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:BIDU has earned a 4 for growth:

• BIDU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.62% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of BIDU for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.