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Baidu

Nasdaq:BIDU
Snowflake Description

Adequate balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BIDU
Nasdaq
$40B
Market Cap
  1. Home
  2. US
  3. Media
Company description

Baidu, Inc. provides Internet search services in China and internationally. The last earnings update was 35 days ago. More info.


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BIDU Share Price and Events
7 Day Returns
0.5%
NasdaqGS:BIDU
2.5%
US Interactive Media and Services
0.7%
US Market
1 Year Returns
-36.1%
NasdaqGS:BIDU
25.7%
US Interactive Media and Services
18.2%
US Market
BIDU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Baidu (BIDU) 0.5% -5% 2.9% -36.1% -32.4% -48.7%
US Interactive Media and Services 2.5% 2.8% 6.9% 25.7% 54.5% 122.4%
US Market 0.7% 1.5% 5% 18.2% 35.8% 52.7%
1 Year Return vs Industry and Market
  • BIDU underperformed the Interactive Media and Services industry which returned 25.7% over the past year.
  • BIDU underperformed the Market in United States of America which returned 18.2% over the past year.
Price Volatility
BIDU
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Baidu undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Baidu to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Baidu.

NasdaqGS:BIDU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 32 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:BIDU
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 6.3%
Interactive Media and Services Unlevered Beta Simply Wall St/ S&P Global 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.042 (1 + (1- 25%) (26.89%))
1.169
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.169 * 6.33%)
9.14%

Discounted Cash Flow Calculation for NasdaqGS:BIDU using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Baidu is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:BIDU DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 9.14%)
2020 15,232.43 Analyst x7 13,956.72
2021 22,507.01 Analyst x6 18,894.98
2022 26,482.67 Analyst x1 20,370.64
2023 29,390.66 Est @ 10.98% 20,714.13
2024 31,803.19 Est @ 8.21% 20,537.25
2025 33,796.60 Est @ 6.27% 19,996.73
2026 35,455.87 Est @ 4.91% 19,221.55
2027 36,859.46 Est @ 3.96% 18,308.96
2028 38,073.28 Est @ 3.29% 17,328.03
2029 39,149.67 Est @ 2.83% 16,325.68
Present value of next 10 years cash flows CN¥185,654.00
NasdaqGS:BIDU DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥39,149.67 × (1 + 1.74%) ÷ (9.14% – 1.74%)
CN¥538,223.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥538,223.52 ÷ (1 + 9.14%)10
CN¥224,442.93
NasdaqGS:BIDU Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥185,654.00 + CN¥224,442.93
CN¥410,096.93
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥410,096.93 / 346.50
CN¥1183.55
NasdaqGS:BIDU Discount to Share Price
Calculation Result
Exchange Rate CNY/USD
(Reporting currency to currency of NasdaqGS:BIDU)
0.142
Value per Share
(USD)
= Value per Share in CNY x Exchange Rate (CNY/USD)
= CN¥1183.55 x 0.142
$168.25
Value per share (USD) From above. $168.25
Current discount Discount to share price of $114.78
= -1 x ($114.78 - $168.25) / $168.25
31.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Baidu is available for.
Intrinsic value
32%
Share price is $114.78 vs Future cash flow value of $168.25
Current Discount Checks
For Baidu to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Baidu's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Baidu's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Baidu's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Baidu's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:BIDU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in CNY CN¥-6.33
NasdaqGS:BIDU Share Price ** NasdaqGS (2019-12-10) in USD $114.78
NasdaqGS:BIDU Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 7.034 CN¥807.41
United States of America Interactive Media and Services Industry PE Ratio Median Figure of 26 Publicly-Listed Interactive Media and Services Companies 23.53x
United States of America Market PE Ratio Median Figure of 2,924 Publicly-Listed Companies 18.5x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Baidu.

NasdaqGS:BIDU PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:BIDU Share Price ÷ EPS (both in CNY)

= 807.41 ÷ -6.33

-127.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Baidu is loss making, we can't compare its value to the US Interactive Media and Services industry average.
  • Baidu is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Baidu's expected growth come at a high price?
Raw Data
NasdaqGS:BIDU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -127.62x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 32 Analysts
82.4%per year
United States of America Interactive Media and Services Industry PEG Ratio Median Figure of 23 Publicly-Listed Interactive Media and Services Companies 1.39x
United States of America Market PEG Ratio Median Figure of 2,046 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Baidu, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Baidu's assets?
Raw Data
NasdaqGS:BIDU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in CNY CN¥456.28
NasdaqGS:BIDU Share Price * NasdaqGS (2019-12-10) in USD $114.78
NasdaqGS:BIDU Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 7.034 CN¥807.41
United States of America Interactive Media and Services Industry PB Ratio Median Figure of 61 Publicly-Listed Interactive Media and Services Companies 2.78x
United States of America Market PB Ratio Median Figure of 5,089 Publicly-Listed Companies 1.78x
NasdaqGS:BIDU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:BIDU Share Price ÷ Book Value per Share (both in CNY)

= 807.41 ÷ 456.28

1.77x

* Primary Listing of Baidu.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Baidu is good value based on assets compared to the US Interactive Media and Services industry average.
X
Value checks
We assess Baidu's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Interactive Media and Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Interactive Media and Services industry average (and greater than 0)? (1 check)
  5. Baidu has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Baidu expected to perform in the next 1 to 3 years based on estimates from 32 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
82.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Baidu expected to grow at an attractive rate?
  • Baidu's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Baidu's earnings growth is expected to exceed the United States of America market average.
  • Baidu's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:BIDU Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:BIDU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 32 Analysts 82.4%
NasdaqGS:BIDU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 32 Analysts 11.4%
United States of America Interactive Media and Services Industry Earnings Growth Rate Market Cap Weighted Average 17.8%
United States of America Interactive Media and Services Industry Revenue Growth Rate Market Cap Weighted Average 15.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:BIDU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 32 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:BIDU Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31 157,223 19,924 1
2021-12-31 135,269 38,710 17,455 23
2020-12-31 119,532 30,813 13,132 32
2019-12-31 107,289 21,624 -1,009 27
2019-12-11
NasdaqGS:BIDU Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-09-30 105,724 -2,209
2019-06-30 107,447 16,432
2019-03-31 107,093 20,422
2018-12-31 103,877 35,967 27,443
2018-09-30 100,937 36,857 29,714
2018-06-30 96,595 36,355 25,733
2018-03-31 90,725 23,235
2017-12-31 86,709 32,828 18,318
2017-09-30 80,666 17,540
2017-06-30 74,850 12,227
2017-03-31 71,619 22,031 10,986
2016-12-31 70,549 22,480 11,075

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Baidu's earnings are expected to grow significantly at over 20% yearly.
  • Baidu's revenue is expected to grow by 11.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:BIDU Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 32 Analyst Estimates (S&P Global) See Below

All data from Baidu Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:BIDU Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 57.09 57.09 57.09 1.00
2021-12-31 49.24 89.46 28.86 14.00
2020-12-31 36.45 62.49 20.70 23.00
2019-12-31 -3.16 -0.86 -5.72 18.00
2019-12-11
NasdaqGS:BIDU Past Financials Data
Date (Data in CNY Millions) EPS *
2019-09-30 -6.33
2019-06-30 47.03
2019-03-31 58.46
2018-12-31 78.64
2018-09-30 85.22
2018-06-30 73.90
2018-03-31 66.86
2017-12-31 52.75
2017-09-30 50.53
2017-06-30 35.23
2017-03-31 31.66
2016-12-31 31.95

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Baidu is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Baidu's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Baidu has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Baidu performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Baidu's growth in the last year to its industry (Interactive Media and Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Baidu does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Baidu's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Baidu's 1-year growth to the US Interactive Media and Services industry average as it is not currently profitable.
Earnings and Revenue History
Baidu's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Baidu Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:BIDU Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 105,724.00 -2,209.00 21,897.00 18,119.00
2019-06-30 107,447.00 16,432.00 22,881.00 17,345.00
2019-03-31 107,093.00 20,422.00 22,143.00 16,644.00
2018-12-31 103,877.00 27,443.00 19,231.00 15,772.00
2018-09-30 100,937.00 29,714.00 16,919.00 14,946.00
2018-06-30 96,595.00 25,733.00 15,024.00 14,272.00
2018-03-31 90,725.00 23,235.00 13,453.00 13,387.00
2017-12-31 86,709.00 18,318.00 13,128.00 12,928.00
2017-09-30 80,665.78 17,540.35 12,831.57 12,196.34
2017-06-30 74,849.78 12,227.35 12,681.57 11,568.34
2017-03-31 71,619.43 10,985.54 13,942.06 10,885.29
2016-12-31 70,549.00 11,075.00 15,071.00 10,151.00
2016-09-30 71,036.01 31,951.68 16,264.25 9,666.44
2016-06-30 71,166.10 31,624.35 18,370.11 9,742.41
2016-03-31 69,477.69 32,752.17 18,065.46 9,990.14
2015-12-31 66,382.00 33,335.00 17,076.00 10,176.00
2015-09-30 61,733.16 12,072.21 16,072.94 9,824.49
2015-06-30 56,869.84 13,097.39 13,071.09 8,966.11
2015-03-31 52,280.38 13,058.34 11,330.12 7,990.65
2014-12-31 49,052.32 13,144.25 10,382.14 6,980.96
2014-09-30 44,525.00 12,709.27 8,720.74 6,109.29
2014-06-30 39,896.91 11,897.54 7,405.13 5,368.25
2014-03-31 35,471.94 10,964.13 6,334.32 4,572.80
2013-12-31 31,943.92 10,518.86 5,173.53 4,106.83
2013-09-30 28,756.36 10,551.94 4,102.94 3,544.57
2013-06-30 26,115.42 10,504.91 3,361.33 3,068.56
2013-03-31 24,010.84 10,631.28 2,870.89 2,672.35
2012-12-31 22,306.03 10,433.89 2,501.34 2,304.83

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Baidu has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Baidu has efficiently used its assets last year compared to the US Interactive Media and Services industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Baidu improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Baidu's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Interactive Media and Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Baidu has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Baidu's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Baidu's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Baidu is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Baidu's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Baidu's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Baidu Company Filings, last reported 2 months ago.

NasdaqGS:BIDU Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 169,299.00 68,617.00 134,797.00
2019-06-30 178,204.00 66,162.00 135,092.00
2019-03-31 177,340.00 70,937.00 141,452.00
2018-12-31 175,752.00 64,904.00 139,511.00
2018-09-30 172,844.00 49,250.00 104,491.00
2018-06-30 161,688.00 54,289.00 127,584.00
2018-03-31 138,676.00 50,573.00 110,458.00
2017-12-31 130,372.00 43,566.00 119,019.00
2017-09-30 112,304.00 58,793.00 129,583.00
2017-06-30 104,623.00 51,854.00 117,150.00
2017-03-31 99,702.44 52,412.36 106,744.98
2016-12-31 97,743.00 44,256.00 90,081.00
2016-09-30 93,363.94 39,689.23 78,361.54
2016-06-30 89,692.02 39,097.70 75,812.04
2016-03-31 86,355.13 34,921.50 71,346.14
2015-12-31 84,215.72 35,016.61 68,309.33
2015-09-30 59,628.45 37,416.41 70,143.86
2015-06-30 63,849.37 35,879.26 74,958.80
2015-03-31 57,281.09 25,762.95 58,038.27
2014-12-31 54,052.38 25,677.19 56,831.28
2014-09-30 49,915.23 24,036.06 51,347.86
2014-06-30 46,068.42 24,218.95 48,658.54
2014-03-31 42,067.39 18,026.21 39,678.79
2013-12-31 40,665.25 17,572.97 38,426.56
2013-09-30 36,343.95 17,791.14 43,300.39
2013-06-30 32,524.67 11,739.70 34,069.39
2013-03-31 29,537.16 11,828.54 33,816.77
2012-12-31 27,215.13 11,864.25 32,484.86
  • Baidu's level of debt (40.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (48.1% vs 40.5% today).
  • Debt is well covered by operating cash flow (52.4%, greater than 20% of total debt).
  • Baidu is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Baidu's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Baidu has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Baidu's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Baidu dividends. Estimated to be 0% next year.
If you bought $2,000 of Baidu shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Baidu's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Baidu's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:BIDU Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 32 Analyst Estimates (S&P Global) See Below
Global Interactive Media and Services Industry Average Dividend Yield Market Cap Weighted Average of 42 Stocks 0.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1960 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:BIDU Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.00 1.00
2022-12-31 0.00 1.00
2021-12-31 0.00 8.00
2020-12-31 0.00 9.00
2019-12-31 0.00 9.00
2019-12-11

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Baidu has not reported any payouts.
  • Unable to verify if Baidu's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Baidu's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Baidu has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Baidu's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Baidu's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Baidu afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Baidu has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Baidu's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Robin Li
COMPENSATION CN¥0
AGE 51
TENURE AS CEO 15.8 years
CEO Bio

Mr. Yanhong Li, also known as Robin, Co-Founded Baidu, Inc. in January 2000 and has been its Chief Executive Officer since February, 2004 and oversees its overall strategy and business operations. Mr. Li is Director of China United Network Communications Limited. Mr. Li served as the President of Baidu, Inc. from February 2000 to December 2003. He served as an Engineer of Infoseek from July 1997 to December 1999. He served as Senior Consultant of IDD Information Services from May 1994 to June 1997. He serves as the Chairman of Baidu Venture and Baidu Capital. He has been the Chairman of iQiyi.com Inc., since 2010 and Baidu, Inc. since January 2000. He served as Chairman and Director of Qunar Cayman Islands Limited since June 2012 until January 4, 2016. Mr. Li has been an Independent Director of New Oriental Education and Technology Group since September 6, 2006. He has been a Director of Ctrip.com International Ltd. since October 26, 2015. Mr. Li served as Director at Beijing Baidu Investment Management Co., Ltd. In 1996, he was awarded a US patent by consolidating web page quality-based sequencing and interrelationship-based sequencing. In 1998, he published a book “Silicon Valley Business War” in Mainland China, based on his own working and living experiences in Silicon Valley. Mr. Li worked as a staff engineer for Infoseek, a pioneer in the internet search engine industry, from July 1997 to December 1999. Mr. Li has also been a Vice Chairman of All-China Federation of Industry & Commerce and a Member of the Chinese People’s Political Consultative Conference since December 2012 and 2013, respectively. Mr. Li holds a Bachelor of Science Degree in Information Sciencet from Peking University in 1991 and a Master of Science Degree in Computer Science from the State University of New York at Buffalo in 1994.

CEO Compensation
  • Insufficient data for Robin to compare compensation growth.
  • Insufficient data for Robin to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Baidu management team in years:

2.3
Average Tenure
49.5
Average Age
  • The tenure for the Baidu management team is about average.
Management Team

Robin Li

TITLE
Co-Founder
AGE
51
TENURE
15.8 yrs

Herman Yu

TITLE
Chief Financial Officer
AGE
49
TENURE
2.3 yrs

Haifeng Wang

TITLE
Chief Technology Officer
AGE
47

Sharon Ng

TITLE
Director of Ir

Victor Liang

TITLE
VP & General Counsel
TENURE
8.5 yrs

Shanshan Cui

TITLE
Vice President of Human Resources
TENURE
0.7 yrs

Hui Lee Liu

TITLE
Chairman of the Cloud Business
AGE
53
TENURE
0.6 yrs

Dou Shen

TITLE
Senior Vice President
AGE
43
TENURE
0.6 yrs

Tim Gong Yu

TITLE
Chief Executive Officer of Beijing Qiyi Century Science & Technology Co.
AGE
50
TENURE
9.9 yrs
Board of Directors Tenure

Average tenure and age of the Baidu board of directors in years:

4.2
Average Tenure
53
Average Age
  • The tenure for the Baidu board of directors is about average.
Board of Directors

Robin Li

TITLE
Co-Founder
AGE
51
TENURE
19.9 yrs

Jixun Foo

TITLE
Director
AGE
51
TENURE
0.4 yrs

James Ding

TITLE
Independent Director
AGE
54
TENURE
14.3 yrs

Brent Callinicos

TITLE
Independent Director
AGE
53
TENURE
4.2 yrs

Yuanqing Yang

TITLE
Independent Director
AGE
54
TENURE
4.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Baidu's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Baidu has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does Baidu, Inc.'s (NASDAQ:BIDU) August Stock Price Reflect Its Future Growth?

This tells us the stock is undervalued relative to the current US market average of 17.05x , and undervalued based on its latest annual earnings update compared to the Interactive Media and Services average of 26.5x. … However, to be able to properly assess the value of a high-growth stock such as Baidu, we must incorporate its earnings growth in our valuation. … So, when we include the growth factor in our analysis, Baidu appears relatively cheap , based on its fundamentals.

Simply Wall St -

Calculating The Intrinsic Value Of Baidu, Inc. (NASDAQ:BIDU)

Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (CN¥, Millions) CN¥17.5b CN¥23.2b CN¥22.8b CN¥20.0b CN¥18.3b CN¥17.4b CN¥16.9b CN¥16.7b CN¥16.8b CN¥16.9b Growth Rate Estimate Source Analyst x9 Analyst x8 Analyst x2 Analyst x1 Est @ -8.38% Est @ -5.05% Est @ -2.72% Est @ -1.08% Est @ 0.06% Est @ 0.86% Present Value (CN¥, Millions) Discounted @ 9.51% CN¥16.0k CN¥19.4k CN¥17.4k CN¥13.9k CN¥11.6k CN¥10.1k CN¥9.0k CN¥8.1k CN¥7.4k CN¥6.8k ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= CN¥119.6b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = CN¥17b × (1 + 2.7%) ÷ (9.5% – 2.7%) = CN¥256b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = CN¥CN¥256b ÷ ( 1 + 9.5%)10 = CN¥103.22b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CN¥222.85b. … NasdaqGS:BIDU Intrinsic value, August 12th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

What Kind Of Shareholders Own Baidu, Inc. (NASDAQ:BIDU)?

Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. … Check out our latest analysis for Baidu NasdaqGS:BIDU Ownership Summary, July 29th 2019 What Does The Institutional Ownership Tell Us About Baidu? … Insider Ownership Of Baidu The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Shareholders Should Look Hard At Baidu, Inc.’s (NASDAQ:BIDU) 4.6% Return On Capital

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Baidu: 0.046 = CN¥12b ÷ (CN¥309b - CN¥57b) (Based on the trailing twelve months to March 2019.) So, Baidu has an ROCE of 4.6%. … Baidu's Current Liabilities And Their Impact On Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Here's Why Baidu (NASDAQ:BIDU) Can Manage Its Debt Responsibly

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … While Baidu has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. … Summing up While it is always sensible to investigate a company's debt, in this case Baidu has CN¥71b in net cash and a decent-looking balance sheet.

Simply Wall St -

Why Baidu, Inc. (NASDAQ:BIDU) Could Be Worth Watching

According to my valuation model, Baidu seems to be fairly priced at around 7.99% above my intrinsic value, which means if you buy Baidu today, you’d be paying a relatively reasonable price for it. … Currently, BIDU appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. … The price seems to be trading at fair value, which means there’s less benefit from mispricing.

Simply Wall St -

Should Baidu, Inc. (NASDAQ:BIDU) Focus On Improving This Fundamental Metric?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Baidu: 9.4% = CN¥20b ÷ CN¥177b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Combining Baidu's Debt And Its 9.4% Return On Equity While Baidu does have some debt, with debt to equity of just 0.40, we wouldn't say debt is excessive. … Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises.

Simply Wall St -

Is It Too Late To Buy Baidu, Inc. (NASDAQ:BIDU) At Its May Price?

But, to properly examine the value of a high-growth stock such as Baidu, we must reflect its earnings growth into the valuation. … A PE ratio of 15.18x and expected year-on-year earnings growth of 38% give Baidu an extremely low PEG ratio of 0.40x. … This tells us that when we include its growth in our analysis Baidu's stock can be considered relatively cheap , based on the fundamentals.

Simply Wall St -

Is There An Opportunity With Baidu, Inc.'s (NASDAQ:BIDU) 43% Undervaluation?

by projecting its future cash flows and then discounting them to today's value. … This is done using the Discounted Cash Flow (DCF) model. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model

Simply Wall St -

How To Take Advantage Of Baidu, Inc. (NASDAQ:BIDU) In A Bear Market

Stock market crashes are an opportune time to buy. … High quality companies, such as Baidu, Inc., are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … View our latest analysis for Baidu.

Simply Wall St -

Company Info

Description

Baidu, Inc. provides Internet search services in China and internationally. It operates through two segments, Baidu Core and iQIYI. The Baidu Core segment offers products for uses, including Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services through its other properties and Union partners; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Haokan, a short video app; and Quanmin, a flash video app for users to create and share short videos. It also provides Baidu Post Bar, a social media platform; Baidu Knows, a question-and-answer community where questions are asked, answered, and organized by users; Baidu Encyclopedia; Baidu Maps that offers locations, and intelligent routing and navigation services; Baidu Input Method Editor or Baidu IME, a Chinese-language mobile keyboard; Baidu WenKu; Baijiahao; and DuerOS, a voice assistant platform. In addition, this segment offers online marketing services, which include pay for performance (P4P), an auction-based services that allow customers to bid for priority placement of paid sponsored links and reach users who search for information related to their products or services; Non-P4P services provide display-based marketing services and other online marketing services based on performance criteria other than cost per click; Apollo, an open source autonomous driving platform; and Baidu Cloud primarily provides AI solutions, cloud infrastructure, and other services to enterprises and individuals. The iQIYI segment provides online entertainment service, including original and licensed content; membership services; and online advertising services. The company was formerly known as Baidu.com, Inc. and changed its name to Baidu, Inc. in December 2008. Baidu, Inc. was founded in 2000 and is headquartered in Beijing, China.

Details
Name: Baidu, Inc.
BIDU
Exchange: NasdaqGS
Founded: 2000
$39,771,124,229
346,498,730
Website: http://www.baidu.com
Address: Baidu, Inc.
Baidu Campus,
No 10, Shangdi 10th Street,
Beijing,
100085,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS BIDU SPONS ADR REPR 0.10 ORD CLS'A' Nasdaq Global Select US USD 05. Aug 2005
DB B1C SPONS ADR REPR 0.10 ORD CLS'A' Deutsche Boerse AG DE EUR 05. Aug 2005
LSE 0HL1 SPONS ADR REPR 0.10 ORD CLS'A' London Stock Exchange GB USD 05. Aug 2005
SWX BIDU SPONS ADR REPR 0.10 ORD CLS'A' SIX Swiss Exchange CH CHF 05. Aug 2005
WBAG BIDU SPONS ADR REPR 0.10 ORD CLS'A' Wiener Boerse AG AT EUR 05. Aug 2005
BMV BIDU N SPONS ADR REPR 0.10 ORD CLS'A' Bolsa Mexicana de Valores MX MXN 05. Aug 2005
SGX K3SD SPONS ADR REPR 0.10 ORD CLS'A' Singapore Exchange SG USD 05. Aug 2005
Number of employees
Current staff
Staff numbers
42,267
Baidu employees.
Industry
Interactive Media and Services
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/11 00:05
End of day share price update: 2019/12/10 00:00
Last estimates confirmation: 2019/12/04
Last earnings filing: 2019/11/06
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.