BABA

Alibaba Gr Hldgs

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Consumer Cyclical

industry

Internet Retail

Exchange

NYSE

County of HQ

China

Next Earnings Date

05/21/26

Business Summary

Alibaba operates a vast digital commerce ecosystem connecting merchants and consumers through online marketplaces, monetizing via transaction fees, advertising services, and merchant solutions. Its scale creates network effects: more sellers attract more buyers, which in turn attracts more sellers, reinforcing platform dominance. The company converts this ecosystem activity into cash flow through high-margin digital advertising and value-added services layered on top of core retail transactions. Its moat rests on data scale, logistics integration, merchant dependency, and entrenched consumer behavior within its platforms.

VALUATION

P/E

22.5

Market Cap ($M USD)

$313,904

Forward P/E

2.4

PEG

0.3

PRICE TO SALES

2.1

PRICE TO BOOK

2

EV / EBITDA

16

5-Year Average P/E

DIVIDEND

Yield

0.80%

Annual Payout

$1.05

Payout Ratio

18.80%

Consecutive Years of Dividend Growth

1

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$5.84

Next Year EPS Growth Estimate

$52.34

Next Year Revenue Growth Estimate

11.70%

Return on Equity (ROE)

8.90%

Operating Margin

8.80%

Debt-to-Equity

0.3

Piotroski F-Score

5

Altman Z-Score

3

Return on Invested Capital (ROIC)

7.90%%

Current Ratio

1.3

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 22.5x earnings with a Forward P/E of just 2.4 and a PEG of 0.3, the market is pricing Alibaba as if earnings durability is deeply suspect despite clear forward growth embedded in the multiple compression. A 3.0 Altman Z-Score signals balance sheet stability, not distress, while a 1.3 current ratio reinforces short-term liquidity adequacy. The spread between the current P/E and the forward multiple is extreme, implying either a dramatic earnings step-up or market disbelief; paired with an 8.80% Debt/Equity ratio and 7.90% ROIC, this does not screen as a distressed entity but rather as a controversial one. On pure valuation mathematics, this looks mispriced to the upside unless forward earnings expectations collapse.

AI Exposure / Tech Reliance

As an Internet Retail platform within Consumer Cyclical, Alibaba sits directly in the path of AI-driven personalization, logistics optimization, and digital advertising efficiency gains. The sector structurally benefits from automation and algorithmic merchandising, which can enhance its 8.90% operating margin over time. Digital commerce ecosystems are among the fastest adopters of AI infrastructure, positioning the company to integrate data-driven monetization at scale.

The Bull Case

A GARP investor sees 7.90% ROIC exceeding many global retail benchmarks, an 11.70% ROE that confirms capital is still compounding, and a Piotroski F-Score of 5 indicating middling but stable financial health rather than deterioration. The 8.90% operating margin in a competitive retail environment shows the model retains pricing power and cost discipline. With a Forward P/E of 2.4 and PEG of 0.3, the valuation embeds extremely low expectations relative to projected growth, creating asymmetry if execution holds. Add a modest 0.3 TTM yield, a 0.80% dividend per share, and a 1 five-year average dividend rate, and investors are paid to wait while institutional ownership sits at 183.68%, suggesting heavy professional participation.

The Bear Case

The bear case begins with skepticism: a current P/E of 22.5 collapsing to a 2.4 Forward P/E can imply volatile or non-recurring earnings, not simply growth. An 8.80% Debt/Equity ratio is low, but a Piotroski F-Score of 5 is hardly robust, signaling only average fundamental strength. Operating margins of 8.90% are not elite for a scaled digital platform, and ROIC at 7.90% leaves limited buffer against competitive compression. The absence of reported short interest data removes a sentiment gauge, while unconventional figures such as a 1.44 mean consensus target price and 2.10% consensus rating suggest either data inconsistency or unusually low external conviction.

Market Sentiment & Smart Money

Short Interest %

2.10%

Analyst Consensus

1.44

Average Analyst Price Target

$183.68

Institutional Ownership %

11.80%

1-Year Beta

1.19

Insider Buying % (6 Mo)

0.00%%

Distance to 52-Week High

66.10%%

Distance to 52-Week Low

124.60%%