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

NYSE:BABA • US01609W1027

Current stock price

129.87 USD
+4.39 (+3.5%)
At close:
125.09 USD
-4.78 (-3.68%)
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

  • In the past year BABA was profitable.
  • BABA had a positive operating cash flow in the past year.
  • 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

  • BABA has a better Return On Assets (4.94%) than 70.00% of its industry peers.
  • BABA has a better Return On Equity (8.93%) than 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.
  • The Average Return On Invested Capital over the past 3 years for BABA is in line with the industry average of 8.76%.
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

  • With an excellent Profit Margin value of 9.13%, BABA belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
  • In the last couple of years the Profit Margin of BABA has declined.
  • BABA has a Operating Margin of 8.59%. This is in the better half of the industry: BABA outperforms 73.33% of its industry peers.
  • BABA's Operating Margin has declined in the last couple of years.
  • BABA's Gross Margin of 40.76% is in line compared to the rest of the industry. BABA outperforms 50.00% of its industry peers.
  • In the last couple of years the Gross Margin of BABA has declined.
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BABA is destroying value.
  • Compared to 1 year ago, BABA has less shares outstanding
  • The number of shares outstanding for BABA has been reduced compared to 5 years ago.
  • 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 2.84 indicates that BABA is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • BABA's Altman-Z score of 2.84 is fine compared to the rest of the industry. BABA outperforms 66.67% of its industry peers.
  • BABA has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
  • BABA has a Debt to Equity ratio of 0.23. This is in the better half of the industry: BABA outperforms 70.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF N/A
Altman-Z 2.84
ROIC/WACC0.57
WACC8.36%
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

  • BABA has a Current Ratio of 1.33. This is a normal value and indicates that BABA is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of BABA (1.33) is comparable to the rest of the industry.
  • BABA has a Quick Ratio of 1.33. This is a normal value and indicates that BABA is financially healthy and should not expect problems in meeting its short term obligations.
  • BABA has a Quick ratio of 1.33. This is comparable to the rest of the industry: BABA outperforms 53.33% of its industry peers.
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.
  • Measured over the past 5 years, BABA shows a small growth in Earnings Per Share. The EPS has been growing by 4.28% on average per year.
  • The Revenue has been growing slightly by 3.56% in the past 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.
  • 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

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

  • BABA is valuated rather expensively with a Price/Earnings ratio of 23.15.
  • 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.
  • BABA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.61, which is the current average of the S&P500 Index.
  • BABA is valuated correctly with a Price/Forward Earnings ratio of 14.24.
  • 63.33% of the companies in the same industry are more expensive than BABA, based on the Price/Forward Earnings ratio.
  • BABA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 23.15
Fwd PE 14.24
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 63.33% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.29
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)5.41
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 0.82%, which is pretty low.
  • BABA's Dividend Yield is a higher than the industry average which is at 0.68.
  • With a Dividend Yield of 0.82, BABA pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 0.82%

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 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 (3/25/2026, 8:11:38 PM)

Premarket: 125.09 -4.78 (-3.68%)

129.87

+4.39 (+3.5%)

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 Cap310.05B
Revenue(TTM)1.02T
Net Income(TTM)92.81B
Analysts82.92
Price Target202.39 (55.84%)
Short Float %1.64%
Short Ratio3.24
Dividend
Industry RankSector Rank
Dividend Yield 0.82%
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)-31.19%
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)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 23.15
Fwd PE 14.24
P/S 2.1
P/FCF N/A
P/OCF 22.68
P/B 2.06
P/tB 2.76
EV/EBITDA 14.29
EPS(TTM)5.61
EY4.32%
EPS(NY)9.12
Fwd EY7.02%
FCF(TTM)-1.79
FCFYN/A
OCF(TTM)5.73
OCFY4.41%
SpS61.73
BVpS63.12
TBVpS47.09
PEG (NY)N/A
PEG (5Y)5.41
Graham Number89.26
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
WACC8.36%
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-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%1.67%
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 23.15 and the Price/Book (PB) ratio is 2.06.


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.