Alibaba Group Holding Ltd (BABA) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Alibaba Group Holding Ltd stock (BABA) is currently trading at $129.87. Alibaba Group Holding Ltd PE ratio is 22.33. Alibaba Group Holding Ltd PS ratio (Price-to-Sales) is 0.29. Analyst consensus price target for BABA is $189.41. WallStSmart rates BABA as Underperform.
- BABA PE ratio analysis and historical PE chart
- BABA PS ratio (Price-to-Sales) history and trend
- BABA intrinsic value — DCF, Graham Number, EPV models
- BABA stock price prediction 2025 2026 2027 2028 2029 2030
- BABA fair value vs current price
- BABA insider transactions and insider buying
- Is BABA undervalued or overvalued?
- Alibaba Group Holding Ltd financial analysis — revenue, earnings, cash flow
- BABA Piotroski F-Score and Altman Z-Score
- BABA analyst price target and Smart Rating
Alibaba Group Holding
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BABA Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Alibaba Group Holding Ltd (BABA)
BABA trades 298% above its Graham fair value of $38.22, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Alibaba Group Holding Ltd (BABA) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, price/sales, price/book. Concerns around return on equity and operating margin. Mixed signals suggest waiting for clearer direction before acting.
Alibaba Group Holding Ltd (BABA) Key Strengths (3)
Mega-cap company, among the largest in the world
Paying less than $1 for every $1 of annual revenue
Trading at 1.93x book value, attractively priced
Supporting Valuation Data
Alibaba Group Holding Ltd (BABA) Areas to Watch (7)
Earnings declining -70.90%, profits shrinking
Very thin margins with limited operational efficiency
Revenue growing slowly at 1.70% annually
Very low institutional interest at 11.89%
Low profitability relative to shareholder equity
Thin profit margins with limited profitability
Growth is fairly priced, not cheap, not expensive
Alibaba Group Holding Ltd (BABA) Detailed Analysis Report
Overall Assessment
This company scores 49/100 in our Smart Analysis, earning a D+ grade. Out of 10 metrics analyzed, 3 register as strengths (avg 9.3/10) while 7 fall into concern territory (avg 2.7/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Market Cap, Price/Sales, Price/Book. Valuation metrics including Price/Sales (0.29), Price/Book (1.93) suggest the stock is attractively priced.
The Bear Case
The primary concerns are EPS Growth, Operating Margin, Revenue Growth. Some valuation metrics including PEG Ratio (1.56) suggest expensive pricing. Growth concerns include Revenue Growth at 1.70%, EPS Growth at -70.90%, which may limit upside. Profitability pressure is visible in Return on Equity at 8.23%, Operating Margin at 7.08%, Profit Margin at 8.91%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 8.23% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 1.70% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. EPS Growth and Operating Margin are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
BABA Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
BABA's Price-to-Sales ratio of 0.29x trades at a deep discount to its historical average of 1.19x (23th percentile). The current valuation is 93% below its historical high of 4.29x set in Nov 2014, and 55% above its historical low of 0.19x in Jun 2024.
WallStSmart Analysis Synopsis
Data-driven financial summary for Alibaba Group Holding Ltd (BABA) · CONSUMER CYCLICAL › INTERNET RETAIL
The Big Picture
Alibaba Group Holding Ltd is in a high-growth phase, prioritizing rapid expansion over margins. Revenue reached 1.0T with 170% growth year-over-year. Profit margins are thin at 8.9%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Revenue growing at 170% YoY, reaching 1.0T. This pace significantly outperforms most INTERNET RETAIL peers.
ROE of 823.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Earnings fell 71% YoY while revenue grew 170%. This gap usually reflects one-time items (tax benefits, write-offs) in the prior period, not an operational decline.
What to Watch Next
Margin expansion: can Alibaba Group Holding Ltd push profit margins above 15% as the business scales?
Growth sustainability: can Alibaba Group Holding Ltd maintain 170%+ revenue growth, or will competition slow it down?
Sector dynamics: monitor INTERNET RETAIL industry trends, competitive moves, and regulatory changes that could impact Alibaba Group Holding Ltd.
Bottom Line
Alibaba Group Holding Ltd is a high-conviction growth story with revenue accelerating at 170% while profitability is still developing. For growth-oriented investors, the trajectory is compelling. For value investors, the thin 8.9% margins and premium valuation suggest patience until the unit economics mature further.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
Data sourced from SEC Form 4 filings
Last updated: 8:21:52 AM
About Alibaba Group Holding Ltd(BABA)
NYSE
CONSUMER CYCLICAL
INTERNET RETAIL
USA
Alibaba Group Holding Limited, also known as Alibaba Group and Alibaba.com, is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Founded on 28 June 1999 in Hangzhou, Zhejiang, the company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via web portals, as well as electronic payment services, shopping search engines and cloud computing services. It owns and operates a diverse portfolio of companies around the world in numerous business sectors.