Alibaba Group Valuation
| BABAF Stock | USD 9.30 0.26 2.88% |
At this time, the firm appears to be fairly valued. Alibaba Group Holding shows a prevailing Real Value of $9.23 per share. The current price of the firm is $9.3. 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 203.25 B, and Profit Margin of 0.02 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor locking in undervalued instruments and disposing overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Fairly Valued
Today
Please note that Alibaba Group's price fluctuation is somewhat reliable 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.
Our valuation method for Alibaba Group Holding is useful when determining the fair value of the Alibaba pink sheet, which is usually determined by what a typical buyer is willing to pay for full or partial control of Alibaba Group. Since Alibaba Group is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Alibaba Pink Sheet. 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 9.3 | Real 9.23 | Hype 9.3 | Naive 9.34 |
The real value of Alibaba Pink Sheet, also known as its intrinsic value, is the underlying worth of Alibaba Group Holding Company, which is reflected in its stock price. It is based on Alibaba Group's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. 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 pink sheet'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 Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Alibaba Group's current stock value. Our valuation model uses many indicators to compare Alibaba Group value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Alibaba Group competition to find correlations between indicators driving Alibaba Group's intrinsic value. More Info.Alibaba Group Holding is number one stock in price to earning category among related companies. It is number one stock in price to book category among related companies fabricating about 1.33 of Price To Book per Price To Earning. Comparative valuation analysis is a catch-all model that can be used if you cannot value Alibaba Group by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Alibaba Group's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Alibaba Group's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Alibaba Group's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Alibaba Group and how it compares across the competition.
About Alibaba Group Valuation
The pink sheet valuation mechanism determines the current worth of Alibaba Group Holding on a weekly basis. We use both absolute as well as 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 its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Alibaba Group's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to Alibaba Group's related companies.Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the Peoples Republic of China and internationally. The company was incorporated in 1999 and is based in Hangzhou, the Peoples Republic of China. Alibaba Group operates under Internet Retail classification in the United States and is traded on OTC Exchange. It employs 245700 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.
Alibaba Group Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Alibaba Group does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 21.4 B | |
| Quarterly Earnings Growth Y O Y | -0.482 | |
| Forward Price Earnings | 10.1317 | |
| Retained Earnings | 573.4 B |
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 tightly coupled with the direction of predictive economic indicators such as signals in nation. Note that the Alibaba Group Holding information on this page should be used as a complementary analysis to other Alibaba Group's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Complementary Tools for Alibaba Pink Sheet analysis
When running Alibaba Group's price analysis, check to measure Alibaba Group's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alibaba Group is operating at the current time. Most of Alibaba Group's value examination focuses on studying past and present price action to predict the probability of Alibaba Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alibaba Group's price. Additionally, you may evaluate how the addition of Alibaba Group to your portfolios can decrease your overall portfolio volatility.
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