BIDU

Baidu

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Communication Services

industry

Internet Content & Information

Exchange

Nasdaq

County of HQ

China

Next Earnings Date

05/20/26

Business Summary

Baidu operates a dominant online search and digital content ecosystem, monetizing primarily through performance-based advertising tied to user queries and traffic. Its platform model converts user intent into advertiser spend, generating revenue at scale with relatively low incremental distribution cost. The company’s moat historically stems from data scale, brand recognition in search, and entrenched relationships with advertisers within its ecosystem. Cash generation is driven by converting platform traffic into paid placements, leveraging technology infrastructure that becomes more valuable as usage and advertiser density increase.

VALUATION

P/E

62.9

Market Cap ($M USD)

$37,032

Forward P/E

1.7

PEG

0.2

PRICE TO SALES

2

PRICE TO BOOK

1

EV / EBITDA

7.7

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$1.99

Next Year EPS Growth Estimate

$64.37

Next Year Revenue Growth Estimate

7.00%

Return on Equity (ROE)

1.80%

Operating Margin

8.00%

Debt-to-Equity

0.4

Piotroski F-Score

3

Altman Z-Score

2.1

Return on Invested Capital (ROIC)

0.00%%

Current Ratio

1.8

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 62.9x earnings with a Forward P/E of just 1.7 and a PEG Forward of 0.2, this is an extreme valuation dislocation on the surface, implying either a dramatic earnings inflection or deeply unreliable forward expectations. The market cap of $37,032M against a Price/Sales of 2 and Price/Book of 1 suggests the equity is priced like a no-growth asset despite being in Internet Content & Information. However, profitability quality is thin: Operating Margin is just 1.80%, ROE is 7.00%, ROIC is 0.00%, and the Piotroski F-Score of 3 signals weak financial strength. The Altman Z-Score of 2.1 places the company in the gray zone—not distressed, but hardly fortress-like—so while the Forward P/E screams upside, the balance sheet and operating efficiency metrics argue caution.

AI Exposure / Tech Reliance

As a Communication Services company in Internet Content & Information, Baidu sits at the center of digital traffic, search, and platform economics—core infrastructure for AI deployment. The sector naturally benefits from data aggregation and algorithmic improvement cycles, which can compound advantages if executed well. However, with Operating Margin at 1.80%, the financial buffer to aggressively fund next-gen AI expansion appears limited.

The Bull Case

A deep value or GARP investor could argue this is a classic multiple compression anomaly: a $37,032M company trading at 1x book and 2x sales with a Forward P/E of 1.7 and PEG of 0.2. Debt/Equity at 8.00% is conservatively structured, and a Current Ratio of 1.8 suggests solid short-term liquidity. The 7.00% ROE, while not elite, is positive, and the Altman Z-Score of 2.1 indicates no immediate solvency crisis. If forward earnings materialize anywhere near implied levels, the re-rating potential from a 62.9 trailing P/E down to a normalized multiple could be violent to the upside.

The Bear Case

The bear case is straightforward: this is a low-quality earnings profile masquerading as a growth story. A Piotroski F-Score of 3 is weak, ROIC at 0.00% signals no real capital efficiency, and Operating Margin of 1.80% leaves almost no room for error. The trailing P/E of 62.9 against EPS of 7.7, combined with an estimated EPS next year of $1.99, raises serious concerns about earnings durability. An Altman Z-Score of 2.1 and minimal 0.4 yield provide little downside cushion if growth expectations embedded in the 0.2 PEG fail to materialize.

Market Sentiment & Smart Money

Short Interest %

2.80%

Analyst Consensus

1.45

Average Analyst Price Target

$168.72

Institutional Ownership %

19.50%

1-Year Beta

1.28

Insider Buying % (6 Mo)

3.20%%

Distance to 52-Week High

65.60%%

Distance to 52-Week Low

137.00%%