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BABA

NYSE
Neutral · 51/100

Alibaba Group Holding Ltd

Consumer Discretionary
Retail

$97.63

1.5%

Updated Today 12:11 PM ET

Report Card

BABA at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Neutral · 51/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▼ Down 10.3% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$230.36B

P/E

14.78x

Forward P/E (est.)

17.98x

ROE

10.2%

Revenue Growth

2.7%

EPS Growth

-17.8%

Profit Margin

10.3%

FCF Yield

9.4%

Debt / Equity

0.25x

ROIC

4.0%

Interest Coverage

5.12x

Current Ratio

1.28x

Dividend Yield

1.1%

Implied Growth (rev. DCF)

Rating Score

51/100

Business Overview
Research

Alibaba Group Holding Ltd (BABA) is a mega-cap company in the Retail industry, part of the Consumer Discretionary sector of the S&P 500, with a market value around $230.36B.

In its latest reported year it generated about $148.40B in revenue and $15.02B in net profit.

Our model rates BABA Neutral (51/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what BABA's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. BABA trades near $97.63, below its 50-day average ($122.13) and 200-day average ($146.76). Price below both averages is a downtrend — momentum is against buyers for now.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 19 it is oversold — selling has been heavy and a bounce is possible.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. BABA's is $3.12 (~3.2% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month BABA found buyers near $91.99 (support) and sellers near $125.23 (resistance); its 52-week range is $91.99–$192.67. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.4× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

2.5%

1/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $22.99B in 2017 to $148.40B in 2026, a 23.0% compound annual growth rate. The most recent year was roughly flat (2.7%) year over year. Slower, mature growth is common for established businesses.

Profitability
Research
2/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

39.8%

Operating Margin

4.9%

Net Margin

10.1%

ROE

10.2%

Alibaba Group Holding Ltd keeps about 10.3% of each sales dollar as net profit, with a 39.8% gross margin and 4.9% operating margin. Return on equity is 10.2% and return on invested capital about 4.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research
4/4 checks passedDebt under 1× equityDebt under 2× equityInterest covered 3×+Short-term bills covered

Total Debt

Net Debt

Net Debt / EBITDA

Debt / Equity

0.25x

Leverage: debt-to-equity is 0.2x, and operating profit covers interest about 5.1x, with a current ratio of 1.3x. That is a conservative balance sheet — a cushion in downturns.

Cash Flow Analysis
Research
2/2 checks passedPositive free cash flowFCF yield above 2%

Operating CF

$11.05B

Free Cash Flow

$11.05B

FCF Margin

7.4%

In the latest year Alibaba Group Holding Ltd produced about $11.05B of operating cash flow and $11.05B of free cash flow after capital spending. That is a free-cash-flow yield of about 9.4% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Valuation Analysis
Research
2/3 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)

P/E

14.78x

P/S

1.53x

P/B

1.92x

EV / EBITDA

5x

BABA trades at 14.8x trailing earnings (about 18.0x on estimated forward earnings), 1.5x sales, and 1.9x book value. That is an undemanding multiple — potentially cheap if the business is stable.

Metrics vs. Sector Range

Where BABA sits versus its Consumer Discretionary sector peers in the S&P 500.

TTM P/E
14.8xCheap
Forward P/E
18.0xFair
P/S ratio
1.5xFair
Revenue growth
2.7%Weak
EPS growth
-17.8%Weak
Gross margin
39.8%Average
Net margin
10.3%Average
ROE
10.2%Average

Bands show the middle half (25th–75th percentile) of the 50 Consumer Discretionary companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How BABA stacks up against its Consumer Discretionary peers — valuation, profitability, and growth versus the sector median.

In the Consumer Discretionary sector (92 S&P 500 companies), BABA ranks #23 of 92 by our overall rating. It trades at a discount versus the sector on earnings (14.8x P/E vs. 25.4x median) with a lower return on equity (10.2% vs. 24.8%) and slower revenue growth (2.7% vs. 6.2%).

P/E vs sector

14.8x

median 25.4x

ROE vs sector

10.2%

median 24.8%

Growth vs sector

2.7%

median 6.2%

Sector rank

#23

of 92 by rating

CompanyP/ERev Gr.Rating
BABAThis stock14.8x2.7%Neutral· 51
MELI46.6x42.1%Neutral· 46
CPNG160.2x13.1%Weak· 29
JD15.6x10.3%Neutral· 42
DKS23.4x41.2%Favorable· 62
BURL31.6x10.6%Neutral· 52
BJ19.9x5.9%Neutral· 55
MUSA18.7x-1.3%Neutral· 48
Consumer Discretionary median25.4x6.2%22/100

Valuation vs. quality map

sector medianMELICPNGJDDKSBURLBJMUSABABAP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Consumer Discretionary companies by sub-industry and size. Sector median is across all 92 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $97.63 today · expected CAGR -3%7%

Metric20262027202820292030
Revenue$152.85B$157.44B$162.16B$167.03B$172.04B
Net income$15.29B$15.74B$16.22B$16.70B$17.20B
EPS$8.23$8.47$8.73$8.99$9.26
Share price (low)$74.04$76.26$78.55$80.90$83.33
Share price (high)$123.40$127.10$130.91$134.84$138.89
CAGR (low–high)-24% / 26%-12% / 14%-7% / 10%-5% / 8%-3% / 7%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for BABA:

  • Healthy free-cash-flow yield (~9.4%) funds buybacks and dividends.
  • A conservative balance sheet (debt/equity 0.2x) lowers risk.
Bear Case

The case against BABA:

  • Revenue growth is slow (2.7%), limiting the upside engine.
  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Growth risk — sluggish revenue (2.7%) leaves little margin for execution missteps.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: Alibaba Group Holding Ltd is a mega-cap consumer discretionary business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 14.8x earnings, which our model scores Neutral (51/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

BABA — frequently asked questions

Is BABA a good stock to buy?

We don't give buy or sell advice. Our model rates Alibaba Group Holding Ltd Neutral (51/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is BABA's rating on The Stocks School?

Alibaba Group Holding Ltd currently scores 51/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does BABA's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Alibaba Group Holding Ltd's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for BABA calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this BABA analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell BABA. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.