BABA

Alibaba Group Holding Limited

Fundamental data last updated:September 6, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Consumer Cyclical

industry

Specialty Retail

Exchange

NYSE

County of HQ

CN

Next Earnings Date

Pending Announcement

Business Summary

Alibaba Group Holding Limited, through its various subsidiaries, furnishes crucial technological infrastructure and extensive marketing channels. This comprehensive support allows merchants, brands, retailers, and other businesses to effectively engage with their customer base, both within the People's Republic of China and across international markets. The company's operations are organized across seven primary segments: China Commerce, International Commerce, Local Consumer Services, Cainiao (its logistics network), Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. The company's extensive digital ecosystem features premier online retail platforms like Taobao and Tmall. Wholesale business-to-business transactions are facilitated through 1688.com and Alibaba.com. Globally, it operates retail platforms such as AliExpress, Lazada, Trendyol, and Daraz. For fresh goods and groceries, it offers Freshippo, and Tmall Global specializes in import e-commerce. Monetization and advertising solutions are provided via Alimama, its proprietary platform, which offers diverse marketing services including pay-for-performance, in-feed, and display ads, supported by the Taobao Ad Network and Exchange for real-time bidding. Logistics operations are primarily handled by the Cainiao Network. Its local consumer services encompass Ele.me for on-demand food and delivery, Koubei for restaurant and local service directories, and Fliggy for travel booking. Alibaba Cloud offers a wide array of services, including elastic computing, data storage, networking, security, database management, big data analytics, and Internet of Things (IoT) solutions. It also supplies hardware, software licenses, installation, and application development and maintenance. The digital media and entertainment division includes Youku, an online video platform; Quark, an information search and content consumption tool; and Alibaba Pictures, collectively offering diverse content spanning films, live events, news feeds, literature, and music. Its innovation portfolio further extends to Amap, a mobile application for digital mapping and navigation; DingTalk, a business communication and efficiency platform; the Tmall Genie smart speaker; and Qwen, an advanced artificial intelligence chatbot. Founded in 1999, Alibaba Group is headquartered in Hangzhou, People's Republic of China.

 


VALUATION

P/E

18.64

Market Cap ($M USD)

$234.95B

Forward P/E

N/A

PEG

N/A

PRICE TO SALES

1.56

PRICE TO BOOK

1.55

EV / EBITDA

11.64

5-Year Average P/E

Free Cash Flow Yield

-3.24%

DCF Value

$137.30

Graham Number

$79.60

Price to FCF

-30.85

EV to FCF

-32.52

Earnings Yield

6.33%

FCF Yield

-3.24%

DIVIDEND

Yield

1.07%

Annual Payout

$0.89

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$5.25

Next Year EPS Growth Estimate

$0.00

Next Year Revenue Growth Estimate

$1.83T

Return on Equity (ROE)

10.00%

FREE CASH FLOW

Operating Margin

5.83%

Debt-to-Equity

0.25

Piotroski F-Score

3

Altman Z-Score

2.61

Return on Invested Capital (ROIC)

4.18%

Current Ratio

1.28

Quick Ratio

1.28

Net Debt to EBITDA

0.60

Interest Coverage

5.92

Gross Profit margin

39.81%

FCF PER SHARE

$-2.62

REVENUE PER SHARE

$51.90

Gainseekers Quantitative Analysis

Summary

Alibaba’s valuation paints a complex picture. Recent pricing indicated it traded below its DCF value of $146.65, suggesting potential undervaluation. However, the Altman Z-score of 2.57 raises caution about financial stability, hovering near distress levels. The earnings yield of 6.53% is decent, yet the lack of a forward P/E signals uncertainty in future earnings. The market seems to be pricing in significant risks, despite the company’s robust market cap.

AI Exposure / Tech Reliance

Operating in the Specialty Retail industry, Alibaba is well-positioned to leverage AI and tech advancements. Its vast e-commerce platform can integrate AI to enhance customer experience and streamline operations. This adaptability is crucial in maintaining its competitive edge in a rapidly evolving tech landscape.

The Bull Case

For value investors, Alibaba offers intriguing opportunities. The ROIC of 4.18% indicates efficient capital use, while a low debt/equity ratio of 0.25 suggests financial prudence. Despite a negative FCF yield, its gross profit margin of 39.81% highlights strong pricing power. These factors, combined with a consensus "Buy" rating, make it an attractive proposition for those seeking growth at a reasonable price.

The Bear Case

Yet, Alibaba is not without its pitfalls. The negative FCF yield and a price to FCF ratio of -29.89 underscore severe cash flow issues. Trading near its 52-week high, the stock appears technically overextended. The Piotroski F-Score of 3 signals weak financial health, and the operating margin of 5.83% is underwhelming for a company of its scale. These vulnerabilities could deter risk-averse investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$195.00

Institutional Ownership %

1-Year Beta

0.50

Insider Buying % (6 Mo)

Distance to 52-Week High

96.78%

Distance to 52-Week Low

6.05%

EARNINGS SURPRISE %

-91.18%

50-DAY SMA

$122.13

200-DAY SMA

$146.76

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.