Alibaba Group Valuation
| BABAN Stock | MXN 1,784 22.00 1.22% |
At this time, the firm appears to be overvalued. Alibaba Group Holding shows a prevailing Real Value of 1565.74 per share. The current price of the firm is 1784.0. Our model approximates the value of Alibaba Group Holding from analyzing the firm fundamentals such as Return On Equity of -0.0012, current valuation of 3.99 T, and Profit Margin of 0.02 % as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Alibaba Group's price fluctuation is very steady at this time. Calculation of the real value of Alibaba Group Holding is based on 3 months time horizon. Increasing Alibaba Group's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Alibaba stock is determined by what a typical buyer is willing to pay for full or partial control of Alibaba Group Holding. Since Alibaba Group is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Alibaba Stock. However, Alibaba Group's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 1784.0 | Real 1565.74 | Hype 1784.0 |
The intrinsic value of Alibaba Group's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Alibaba Group's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Alibaba Group Holding helps investors to forecast how Alibaba stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Alibaba Group more accurately as focusing exclusively on Alibaba Group's fundamentals will not take into account other important factors: Alibaba Group Total Value Analysis
Alibaba Group Holding is currently expected to have takeover price of 3.99 T with market capitalization of 5.34 T, debt of 148.05 B, and cash on hands of 462.16 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Alibaba Group fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
3.99 T | 5.34 T | 148.05 B | 462.16 B |
Alibaba Group Investor Information
About 15.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.79. Some equities with similar Price to Book (P/B) outperform the market in the long run. Alibaba Group Holding has Price/Earnings To Growth (PEG) ratio of 1.21. The entity recorded earning per share (EPS) of 69.17. The firm had not issued any dividends in recent years. Alibaba Group had 8:1 split on the 30th of July 2019. Based on the analysis of Alibaba Group's profitability, liquidity, and operating efficiency, Alibaba Group Holding is not in a good financial situation at the moment. It has a very high risk of going through financial straits in January.Alibaba Group Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Alibaba Group has an asset utilization ratio of 188.29 percent. This suggests that the Company is making 1.88 for each dollar of assets. An increasing asset utilization means that Alibaba Group Holding is more efficient with each dollar of assets it utilizes for everyday operations.Alibaba Group Ownership Allocation
Alibaba Group holds a total of 2.68 Billion outstanding shares. Almost 84.86 percent of Alibaba Group outstanding shares are held by general public with 0.014 (percent) owned by insiders and only 15.13 % by other corporate entities. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Alibaba Group Profitability Analysis
The company reported the revenue of 859.36 B. Net Income was 158.95 B with profit before overhead, payroll, taxes, and interest of 314.36 B.About Alibaba Group Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Alibaba Group Holding. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Alibaba Group Holding based exclusively on its fundamental and basic technical indicators. By analyzing Alibaba Group's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Alibaba Group's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Alibaba Group. We calculate exposure to Alibaba Group's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Alibaba Group's related companies.Alibaba Group Holding Limited, through its subsidiaries, provides online and mobile commerce businesses in the Peoples Republic of China and internationally. The company was founded in 1999 and is based in Hangzhou, the Peoples Republic of China. ALIBABA GROUP operates under Specialty Retail, Other classification in Mexico and is traded on Mexico Stock Exchange. It employs 252084 people.
8 Steps to conduct Alibaba Group's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Alibaba Group's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Alibaba Group's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Alibaba Group's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Alibaba Group's revenue streams: Identify Alibaba Group's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Alibaba Group's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Alibaba Group's growth potential: Evaluate Alibaba Group's management, business model, and growth potential.
- Determine Alibaba Group's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Alibaba Group's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Additional Information and Resources on Investing in Alibaba Stock
When determining whether Alibaba Group Holding offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Alibaba Group's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Alibaba Group Holding Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Alibaba Group Holding Stock:Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Alibaba Group Holding. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.