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

NYSE:BABA • US01609W1027

Current stock price

132 USD
+1.57 (+1.2%)
Last:

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.
  • In the past year BABA had a positive cash flow from operations.
  • In the past 5 years BABA has always been profitable.
  • 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

  • With a decent Return On Assets value of 4.94%, BABA is doing good in the industry, outperforming 70.00% of the companies in the same industry.
  • BABA has a Return On Equity of 8.93%. This is in the better half of the industry: BABA outperforms 63.33% of its industry peers.
  • With a Return On Invested Capital value of 4.77%, BABA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for BABA 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

  • Looking at the Profit Margin, with a value of 9.13%, BABA belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
  • BABA's Profit Margin has declined in the last couple of years.
  • The Operating Margin of BABA (8.59%) is better than 70.00% of its industry peers.
  • BABA's Operating Margin has declined in the last couple of years.
  • BABA has a Gross Margin (40.76%) which is in line with 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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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • BABA has less shares outstanding than it did 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

  • BABA has an Altman-Z score of 2.84. This is not the best score and indicates that BABA is in the grey zone with still only limited risk for bankruptcy at the moment.
  • With a decent Altman-Z score value of 2.84, BABA is doing good in the industry, outperforming 63.33% 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.
  • BABA's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. BABA outperforms 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF N/A
Altman-Z 2.84
ROIC/WACC0.57
WACC8.44%
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 has a Current ratio of 1.33. This is in the lower half of the industry: BABA underperforms 63.33% 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 60.00% 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

  • The earnings per share for BABA have decreased strongly by -38.57% in the last year.
  • The Earnings Per Share has been growing slightly by 4.28% on average over the past years.
  • Looking at the last year, BABA shows a small growth in Revenue. The Revenue has grown by 3.56% in the last year.
  • The Revenue has been growing by 14.35% on average over the past years. This is quite good.
EPS 1Y (TTM)-38.57%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-66.85%
Revenue 1Y (TTM)3.56%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%1.67%

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.
  • The Revenue is expected to grow by 8.46% on average over the next years. This is quite good.
EPS Next Y-44.77%
EPS Next 2Y-8.85%
EPS Next 3Y4.16%
EPS Next 5Y1.11%
Revenue Next Year2.7%
Revenue Next 2Y6.69%
Revenue Next 3Y8.52%
Revenue Next 5Y8.46%

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

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3

4. BABA Valuation Analysis

4.1 Price/Earnings Ratio

  • BABA is valuated rather expensively with a Price/Earnings ratio of 23.28.
  • Compared to the rest of the industry, the Price/Earnings ratio of BABA indicates a somewhat cheap valuation: BABA is cheaper than 63.33% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.54, BABA is valued at the same level.
  • A Price/Forward Earnings ratio of 16.60 indicates a correct valuation of BABA.
  • 63.33% of the companies in the same industry are more expensive than BABA, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of BABA to the average of the S&P500 Index (21.68), we can say BABA is valued slightly cheaper.
Industry RankSector Rank
PE 23.28
Fwd PE 16.6
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

  • 70.00% of the companies in the same industry are more expensive than BABA, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.23
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)5.44
EPS Next 2Y-8.85%
EPS Next 3Y4.16%

More info and screens

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 0.78%, which is pretty low.
  • In the last 3 months the price of BABA has falen by -23.08%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 0.71, BABA pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.78, BABA pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.78%

5.2 History

  • BABA has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
BABA Yearly Dividends per shareBABA Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 1 2 3

5.3 Sustainability

  • 31.33% of the earnings are spent on dividend by BABA. This is a low number and sustainable payout ratio.
DP31.33%
EPS Next 2Y-8.85%
EPS Next 3Y4.16%
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 (4/30/2026, 12:36:09 PM)

132

+1.57 (+1.2%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Industry StrengthN/A
Industry GrowthN/A
Earnings (Last)03-19
Earnings (Next)05-14
Inst Owners11.79%
Inst Owner Change-1.05%
Ins OwnersN/A
Ins Owner Change6.47%
Market Cap315.71B
Revenue(TTM)1.02T
Net Income(TTM)92.81B
Analysts82.55
Price Target188.49 (42.8%)
Short Float %1.55%
Short Ratio3.44
Dividend
Industry RankSector Rank
Dividend Yield 0.78%
Yearly Dividend1.81
Dividend Growth(5Y)N/A
DP31.33%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-31.19%
Min EPS beat(2)-40.3%
Max EPS beat(2)-22.09%
EPS beat(4)0
Avg EPS beat(4)-17.92%
Min EPS beat(4)-40.3%
Max EPS beat(4)-4.14%
EPS beat(8)2
Avg EPS beat(8)-7.79%
EPS beat(12)4
Avg EPS beat(12)-3.07%
EPS beat(16)8
Avg EPS beat(16)0.32%
Revenue beat(2)1
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-3.93%
Max Revenue beat(2)0.12%
Revenue beat(4)1
Avg Revenue beat(4)-2.53%
Min Revenue beat(4)-4%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.51%
Revenue beat(12)2
Avg Revenue beat(12)-2.11%
Revenue beat(16)3
Avg Revenue beat(16)-1.83%
PT rev (1m)-6.87%
PT rev (3m)-5.78%
EPS NQ rev (1m)-23.43%
EPS NQ rev (3m)-27.18%
EPS NY rev (1m)-14.19%
EPS NY rev (3m)-16.13%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-0.86%
Valuation
Industry RankSector Rank
PE 23.28
Fwd PE 16.6
P/S 2.12
P/FCF N/A
P/OCF 22.87
P/B 2.08
P/tB 2.78
EV/EBITDA 14.23
EPS(TTM)5.67
EY4.3%
EPS(NY)7.95
Fwd EY6.02%
FCF(TTM)-1.8
FCFYN/A
OCF(TTM)5.77
OCFY4.37%
SpS62.21
BVpS63.61
TBVpS47.45
PEG (NY)N/A
PEG (5Y)5.44
Graham Number90.0839 (-31.75%)
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 2.84
F-Score5
WACC8.44%
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)-38.57%
EPS 3Y7.52%
EPS 5Y4.28%
EPS Q2Q%-66.85%
EPS Next Y-44.77%
EPS Next 2Y-8.85%
EPS Next 3Y4.16%
EPS Next 5Y1.11%
Revenue 1Y (TTM)3.56%
Revenue growth 3Y5.31%
Revenue growth 5Y14.35%
Sales Q2Q%1.67%
Revenue Next Year2.7%
Revenue Next 2Y6.69%
Revenue Next 3Y8.52%
Revenue Next 5Y8.46%
EBIT growth 1Y-34.12%
EBIT growth 3Y15.44%
EBIT growth 5Y8.99%
EBIT Next Year-25.04%
EBIT Next 3Y14.15%
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.


Can you provide the profitability details for ALIBABA GROUP HOLDING-SP ADR?

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


Can you provide the PE and PB ratios for BABA stock?

The Price/Earnings (PE) ratio for ALIBABA GROUP HOLDING-SP ADR (BABA) is 23.28 and the Price/Book (PB) ratio is 2.08.


Is the dividend of ALIBABA GROUP HOLDING-SP ADR sustainable?

The dividend rating of ALIBABA GROUP HOLDING-SP ADR (BABA) is 3 / 10 and the dividend payout ratio is 31.33%.