Operate leading digital retail platforms like Taobao and Tmall for consumers and merchants in China. Now — the numbers.
Revenue is spread across several lines; no single product carries the company.
This is an established company with proven profits.
The market pays 16.9× for every dollar of annual profit — around what a business like this usually costs.
Against companies in its own sector, it looks cheaper than 33% of them.
Analysts' average target sits 65% above today's price.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly below the class average.
The cash pile is strong; debt and other items pull the grade toward the middle.
Clearly below the class average.
Clearly below the class average.
Price Momentum: The stock has lagged the market in recent months; investor interest is weak right now.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
The stock trades 42% below its peak. The market has trimmed its expectations for the company.
There is $53.4B in the vault; even if every debt were paid off, $14.7B would remain.
Over the last 12 months, company executives reported 51 buys and 48 sells. Management buying with its own money is usually read as a good sign.
It pays out $1.05 per share each year — regular cash for whoever holds the stock.
Buyers haven’t stepped back in yet; the price hasn’t found its footing. Report-card grade: 32/100. For a turnaround signal, the stock first needs to close the gap with the market.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 33/100.
Measured against its sector, the quality of the business sits below the class average. Report-card grade: 47/100.
On our five-subject report card, BABA sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: BABA is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.
Analysts’ average target sits above today’s price, yet the valuation grade (33/100) says the stock isn’t cheap.