| Company name | Alibaba Group Holding Ltd |
| 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 | Fair |
| P/E growth | Good |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $266.86 |
| Target stock price (averages with growth) | $295.14 |
| Target stock price (averages with no growth) | $134.25 |
| Target stock price (manual assumptions) | $265.25 |
The following company description is from Google Finance: http://www.google.com/finance?q=baba
Alibaba Group Holding Limited is a holding company. Through its subsidiaries, the Company is engaged in online and mobile commerce through offering of products, services and technology that enable merchants, brands and other businesses to transform the way they market, sell and operate in the People’s Republic of China (China) and internationally. Its businesses consist of core commerce, cloud computing, mobile media and entertainment, and other innovation initiatives. Through investee affiliates, it also participates in the logistics and local services sectors. Retail commerce in China operated by the Company includes the China online commerce destination (Taobao Marketplace); the China third-party platform for brands and retailers (Tmall), and the sales and marketing platform for flash sales (Juhuasuan). Wholesale commerce in China operated by the Company includes the China domestic wholesale marketplace (1688.com) and the wholesale marketplace for global trade (Alibaba.com).
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Alibaba Group Holding Ltd.
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 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: $172.71
- Growth: 0.2
- Current EPS (TTM): $2.96
- P/E: 58
- Future EPS Calc: $7.36
- Future Stock Price Calc: $427.19
- Target stock price: $265.25
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I hope that this makes you a Confident Investor.