| Company name | Alibaba Group Holding Ltd – ADR |
| Stock ticker | BABA |
| Live stock price | [stckqut]BABA[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Good |
| Price growth | Fair |
| R&D growth | Poor |
| Income growth | Good |
| Assets growth | Poor |
| Return on Assets growth | Good |
| Income / Rev growth | Fair |
| TWCA Plus | Good |
| Standard TWCA | Good |
| Weighted ann. stock price increase | Good |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $337.06 |
| Target stock price (averages with growth) | $107.55 |
| Target stock price (averages with no growth) | $122.87 |
| Target stock price (manual assumptions) | $160.43 |
The following company description is from Reuters: https://finance.yahoo.com/quote/baba/profile?p=baba
Alibaba Group Holding Limited, through its subsidiaries, provides online and mobile commerce businesses in the People’s Republic of China and internationally. It operates in four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. The company operates Taobao Marketplace, a mobile commerce destination; Tmall, a third-party platform; Alibaba Health pharmaceutical e-commerce and consumer healthcare platforms; Alimama, a monetization platform; 1688.com, an online wholesale marketplace; Alibaba.com, an online wholesale marketplace; AliExpress, a retail marketplace; Lazada, an e-commerce platform; and Tmall Global, an import e-commerce platform. It also operates Lingshoutong, a digital sourcing platform; Cainiao Network logistic services platform; Ele.me, a delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform. In addition, the company offers pay-for-performance and display marketing services; and Taobao Ad Network and Exchange, a real-time bidding online marketing exchange. Further, it provides elastic computing, database, storage, virtualization network, large scale computing, security, and management and application, big data analytics, machine learning platform, and Internet of Things and other services for enterprises; and payment and escrow services; and movies, television series, variety shows, animations, and other video content. Additionally, the company operates Youku, an online video platform; UC Browser, a mobile browser; Alibaba Pictures and other content platforms that provide online videos, films, live events, news feeds, literature, music, and others; Amap, a mobile digital map, navigation, and real-time traffic information app; DingTalk, a business efficiency app; and Tmall Genie, an AI-powered smart speaker. The company was founded in 1999 and is based in Hangzhou, the People’s Republic of China.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Alibaba Group Holding Ltd – ADR as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns. Because of these concerns and the fact that I am already investing in other companies in this space, I will be removing Alibaba from my Watch List.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Alibaba Group Holding Ltd – ADR calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $218.04
- Growth: 0.142866666666667
- Current EPS (TTM): $5.39355733333333
- P/E: 24.5694199255779
- Future EPS Calc: $10.51
- Future Stock Price Calc: $258.37
- Target stock price: $160.42
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I hope that this makes you a Confident Investor.