Loading...

We've got a brand new version of Simply Wall St! Try it out

Alibaba Group Holding

NYSE:BABA
Snowflake Description

Exceptional growth potential with flawless balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BABA
NYSE
$466B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

Alibaba Group Holding Limited, through its subsidiaries, provides online and mobile commerce businesses in the People's Republic of China and internationally. The last earnings update was 31 days ago. More info.


Add to Portfolio Compare Print
BABA Share Price and Events
7 Day Returns
1.4%
NYSE:BABA
1%
US Online Retail
1.2%
US Market
1 Year Returns
8.8%
NYSE:BABA
-0.4%
US Online Retail
1.7%
US Market
BABA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Alibaba Group Holding (BABA) 1.4% 2.6% 12% 8.8% 71.2% 90.8%
US Online Retail 1% 6% 4% -0.4% 89.6% 163.7%
US Market 1.2% 5.7% 3.9% 1.7% 37.6% 42.4%
1 Year Return vs Industry and Market
  • BABA outperformed the Online Retail industry which returned -0.4% over the past year.
  • BABA outperformed the Market in United States of America which returned 1.7% over the past year.
Price Volatility
BABA
Industry
5yr Volatility vs Market
Related Companies

BABA Value

 Is Alibaba Group Holding 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 Alibaba Group Holding 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 Alibaba Group Holding.

NYSE:BABA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 47 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 NYSE:BABA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Online Retail Unlevered Beta Simply Wall St/ S&P Global 1.63
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.627 (1 + (1- 25%) (4.22%))
1.455
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.45
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.455 * 5.96%)
11.4%

Discounted Cash Flow Calculation for NYSE:BABA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Alibaba Group Holding 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.

NYSE:BABA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 11.4%)
2020 129,298.20 Analyst x5 116,065.38
2021 143,503.92 Analyst x9 115,633.64
2022 217,933.78 Analyst x5 157,635.94
2023 192,016.91 Analyst x2 124,675.29
2024 159,298.00 Analyst x1 92,845.63
2025 141,534.93 Est @ -11.15% 74,049.99
2026 131,646.46 Est @ -6.99% 61,827.37
2027 126,286.32 Est @ -4.07% 53,240.01
2028 123,721.28 Est @ -2.03% 46,820.54
2029 122,975.50 Est @ -0.6% 41,775.42
Present value of next 10 years cash flows CN¥884,569.00
NYSE:BABA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥122,975.50 × (1 + 2.73%) ÷ (11.4% – 2.73%)
CN¥1,456,927.41
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥1,456,927.41 ÷ (1 + 11.4%)10
CN¥494,925.89
NYSE:BABA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥884,569.00 + CN¥494,925.89
CN¥1,379,494.89
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥1,379,494.89 / 2,603.57
CN¥529.85
NYSE:BABA Discount to Share Price
Calculation Result
Exchange Rate CNY/USD
(Reporting currency to currency of NYSE:BABA)
0.141
Value per Share
(USD)
= Value per Share in CNY x Exchange Rate (CNY/USD)
= CN¥529.85 x 0.141
$74.87
Value per share (USD) From above. $74.87
Current discount Discount to share price of $179.17
= -1 x ($179.17 - $74.87) / $74.87
-139.3%

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

  • The current share price of Alibaba Group Holding is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Alibaba Group Holding's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Alibaba Group Holding's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:BABA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in CNY CN¥38.76
NYSE:BABA Share Price ** NYSE (2019-09-13) in USD $179.17
NYSE:BABA Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 7.077 CN¥1267.97
United States of America Online Retail Industry PE Ratio Median Figure of 31 Publicly-Listed Online Retail Companies 32.71x
United States of America Market PE Ratio Median Figure of 3,104 Publicly-Listed Companies 18.25x

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

** Primary Listing of Alibaba Group Holding.

NYSE:BABA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:BABA Share Price ÷ EPS (both in CNY)

= 1267.97 ÷ 38.76

32.71x

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

  • Alibaba Group Holding is good value based on earnings compared to the US Online Retail industry average.
  • Alibaba Group Holding is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Alibaba Group Holding's expected growth come at a high price?
Raw Data
NYSE:BABA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 32.71x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 47 Analysts
24%per year
United States of America Online Retail Industry PEG Ratio Median Figure of 25 Publicly-Listed Online Retail Companies 1.65x
United States of America Market PEG Ratio Median Figure of 2,142 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

NYSE:BABA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 32.71x ÷ 24%

1.36x

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

  • Alibaba Group Holding is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Alibaba Group Holding's assets?
Raw Data
NYSE:BABA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in CNY CN¥200.63
NYSE:BABA Share Price * NYSE (2019-09-13) in USD $179.17
NYSE:BABA Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 7.077 CN¥1267.97
United States of America Online Retail Industry PB Ratio Median Figure of 66 Publicly-Listed Online Retail Companies 2.9x
United States of America Market PB Ratio Median Figure of 5,307 Publicly-Listed Companies 1.8x
NYSE:BABA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:BABA Share Price ÷ Book Value per Share (both in CNY)

= 1267.97 ÷ 200.63

6.32x

* Primary Listing of Alibaba Group Holding.

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

  • Alibaba Group Holding is overvalued based on assets compared to the US Online Retail industry average.
X
Value checks
We assess Alibaba Group Holding'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 Online Retail 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 Online Retail industry average (and greater than 0)? (1 check)
  5. Alibaba Group Holding has a total score of 1/6, 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.

BABA Future Performance

 How is Alibaba Group Holding expected to perform in the next 1 to 3 years based on estimates from 47 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
24%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Alibaba Group Holding expected to grow at an attractive rate?
  • Alibaba Group Holding's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Alibaba Group Holding's earnings growth is expected to exceed the United States of America market average.
  • Alibaba Group Holding's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:BABA Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:BABA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 47 Analysts 24%
NYSE:BABA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 47 Analysts 21.2%
United States of America Online Retail Industry Earnings Growth Rate Market Cap Weighted Average 30.1%
United States of America Online Retail Industry Revenue Growth Rate Market Cap Weighted Average 17.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
NYSE:BABA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 47 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:BABA Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-03-31 1,243,761 471,654 323,563 2
2023-03-31 1,015,986 384,854 211,456 3
2022-03-31 825,046 262,553 162,188 30
2021-03-31 658,353 209,890 121,737 45
2020-03-31 510,529 175,261 88,201 47
2019-09-15
NYSE:BABA Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-06-30 410,848 149,470 100,167
2019-03-31 376,844 150,975 87,600
2018-12-31 345,278 146,171 69,331
2018-09-30 311,028 136,701 60,352
2018-06-30 281,002 136,049 57,987
2018-03-31 250,266 125,805 63,985
2017-12-31 226,913 122,168 67,071
2017-09-30 197,133 104,542 60,853
2017-06-30 176,303 91,241 50,808
2017-03-31 158,273 82,854 43,675
2016-12-31 143,878 74,662 38,393
2016-09-30 125,173 63,476 33,036

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Alibaba Group Holding's earnings are expected to grow significantly at over 20% yearly.
  • Alibaba Group Holding's revenue is expected to grow significantly at over 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
NYSE:BABA 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 47 Analyst Estimates (S&P Global) See Below

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

NYSE:BABA Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-03-31 117.74 117.74 117.74 1.00
2023-03-31 78.96 89.82 68.09 2.00
2022-03-31 58.63 78.48 44.76 17.00
2021-03-31 44.50 57.38 35.65 29.00
2020-03-31 32.50 42.20 28.95 31.00
2019-09-15
NYSE:BABA Past Financials Data
Date (Data in CNY Millions) EPS *
2019-06-30 38.76
2019-03-31 33.95
2018-12-31 26.93
2018-09-30 23.48
2018-06-30 22.63
2018-03-31 25.06
2017-12-31 26.33
2017-09-30 24.06
2017-06-30 20.24
2017-03-31 17.52
2016-12-31 15.53
2016-09-30 13.42

*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.
  • Alibaba Group Holding is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Alibaba Group Holding'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.
Alibaba Group Holding has a total score of 6/6, 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.

BABA Past Performance

  How has Alibaba Group Holding 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 Alibaba Group Holding's growth in the last year to its industry (Online Retail).
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.
  • Alibaba Group Holding's year on year earnings growth rate has been positive over the past 5 years.
  • Alibaba Group Holding's 1-year earnings growth exceeds its 5-year average (72.7% vs 18.1%)
  • Alibaba Group Holding's earnings growth has exceeded the US Online Retail industry average in the past year (72.7% vs 1.3%).
Earnings and Revenue History
Alibaba Group Holding'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 Alibaba Group Holding Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BABA Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 410,848.00 100,167.00 64,442.00 36,403.00
2019-03-31 376,844.00 87,600.00 62,990.00 37,435.00
2018-12-31 345,278.00 69,331.00 59,600.00 35,462.00
2018-09-30 311,028.00 60,352.00 54,757.00 32,850.00
2018-06-30 281,002.00 57,987.00 50,577.00 29,568.00
2018-03-31 250,266.00 63,985.00 43,540.00 22,754.00
2017-12-31 226,913.00 67,071.00 39,074.00 20,586.00
2017-09-30 197,133.00 60,853.00 33,737.00 18,717.00
2017-06-30 176,303.00 50,808.00 30,725.00 17,768.00
2017-03-31 158,273.00 43,675.00 28,553.00 17,060.00
2016-12-31 143,878.00 38,393.00 26,021.00 16,115.00
2016-09-30 125,173.00 33,036.00 24,385.00 15,444.00
2016-06-30 113,052.00 48,167.00 22,384.00 14,535.00
2016-03-31 101,143.00 71,460.00 20,512.00 13,788.00
2015-12-31 94,384.00 68,988.00 20,326.00 13,257.00
2015-09-30 86,020.00 62,426.00 19,625.00 12,591.00
2015-06-30 80,678.00 42,648.00 18,642.00 11,947.00
2015-03-31 76,204.00 24,149.00 16,313.00 10,658.00
2014-12-31 70,810.00 26,799.00 13,097.00 8,816.00
2014-09-30 63,376.00 29,069.00 10,331.00 7,440.00
2014-06-30 57,497.00 31,036.00 8,072.00 6,027.00
2014-03-31 52,504.00 23,076.00 7,494.00 5,093.00
2013-12-31 49,147.00 21,730.00 6,768.00 4,747.00
2013-03-31 34,517.00 8,404.00 6,502.00 3,753.00

*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.
  • Alibaba Group Holding has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Alibaba Group Holding used its assets more efficiently than the US Online Retail industry average last year based on Return on Assets.
  • Alibaba Group Holding has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Alibaba Group Holding'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 Online Retail 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.
Alibaba Group Holding has a total score of 5/6, 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.

BABA Health

 How is Alibaba Group Holding'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 Alibaba Group Holding's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Alibaba Group Holding is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Alibaba Group Holding's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Alibaba Group Holding'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 2.1x 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 Alibaba Group Holding Company Filings, last reported 2 months ago.

NYSE:BABA Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 637,966.00 139,389.00 220,620.00
2019-03-31 608,583.00 134,300.00 203,165.00
2018-12-31 560,922.00 136,053.00 200,591.00
2018-09-30 495,347.00 138,216.00 181,537.00
2018-06-30 472,594.00 138,093.00 185,151.00
2018-03-31 436,438.00 125,553.00 210,210.00
2017-12-31 426,971.00 129,331.00 224,132.00
2017-09-30 367,101.00 91,734.00 165,010.00
2017-06-30 343,642.00 93,318.00 152,614.00
2017-03-31 321,129.00 91,732.00 150,801.00
2016-12-31 306,012.00 90,825.00 141,796.00
2016-09-30 289,209.00 88,095.00 111,008.00
2016-06-30 258,672.00 79,194.00 92,088.00
2016-03-31 249,539.00 57,566.00 115,696.00
2015-12-31 247,546.00 56,516.00 120,382.00
2015-09-30 223,553.00 54,163.00 107,965.00
2015-06-30 183,995.00 52,730.00 117,779.00
2015-03-31 157,413.00 52,593.00 125,999.00
2014-12-31 149,454.00 69,226.00 133,311.00
2014-09-30 129,448.00 63,893.00 111,807.00
2014-06-30 61,729.00 62,105.00 59,619.00
2014-03-31 40,701.00 41,075.00 45,074.00
2013-12-31 34,127.00 40,310.00 50,169.00
2013-03-31 10,960.00 33,101.00 33,315.00
  • Alibaba Group Holding's level of debt (21.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (99.5% vs 21.8% today).
  • Debt is well covered by operating cash flow (107.2%, greater than 20% of total debt).
  • Alibaba Group Holding earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Alibaba Group Holding'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. Alibaba Group Holding has a total score of 6/6, 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.

BABA Dividends

 What is Alibaba Group Holding'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 Alibaba Group Holding dividends. Estimated to be 0% next year.
If you bought $2,000 of Alibaba Group Holding 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 Alibaba Group Holding's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Alibaba Group Holding'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
NYSE:BABA 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 47 Analyst Estimates (S&P Global) See Below
Global Online Retail Industry Average Dividend Yield Market Cap Weighted Average of 46 Stocks 0.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2013 Stocks 2.4%
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.

NYSE:BABA Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2024-03-31
2023-03-31 0.00 1.00
2022-03-31 0.00 5.00
2021-03-31 0.00 6.00
2020-03-31 0.00 7.00
2019-09-15

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

  • Unable to perform a dividend volatility check as Alibaba Group Holding has not reported any payouts.
  • Unable to verify if Alibaba Group Holding's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Alibaba Group Holding's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Alibaba Group Holding has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Alibaba Group Holding'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 Alibaba Group Holding'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 Alibaba Group Holding afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Alibaba Group Holding 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.

BABA Management

 What is the CEO of Alibaba Group Holding'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
Daniel Zhang
AGE 47
TENURE AS CEO 4.3 years
CEO Bio

Mr. Yong Zhang, also known as Daniel, has been the Chief Executive Officer of Alibaba Group Holding Limited since May 2015. Mr. Zhang has been an Executive Chairman of Alibaba Group Holding Limited since September 10, 2019 and has been its Director since September 2014. He has been the Chairman of Intime Retail (Group) Company Ltd. He is a partner of Alibaba Partnership. Mr. Zhang served as Non-executive Director of Haier Electronics Group Co. Ltd. from March 25, 2014 to June 21, 2017. Mr. Zhang has been Director at Weibo Corp. since May 2014. Mr. Zhang has served as Alibaba’s director since September 2014. After joining Alibaba group in August 2007, Mr. Zhang served multiple senior management roles within the group. He served as Chief Operating Officer from September 2013 to May 2015, as President of Tmall.com from June 2011 to September 2013, and as Chief Financial Officer of Taobao Marketplace from August 2007 to June 2011 while concurrently served as General Manager of Tmall.com starting in April 2008 to June 2011. Prior to joining Alibaba, Mr. Zhang served as Chief Financial Officer of Shanda Interactive Entertainment Limited from August 2005 to August 2007. From 2002 to 2005, he was a Senior Manager/Senior Executive of PricewaterhouseCoopers’ Audit and Business Advisory Division in Shanghai. Mr. Zhang is the chairman of Sun Art. He is a member of the WEF International Business Council and serves on the board of directors of the Consumer Goods Forum. Mr. Zhang received a bachelor’s degree in finance from Shanghai University of Finance and Economics.

CEO Compensation
  • Insufficient data for Daniel to compare compensation growth.
  • Insufficient data for Daniel 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 Alibaba Group Holding management team in years:

4.3
Average Tenure
55
Average Age
  • The tenure for the Alibaba Group Holding management team is about average.
Management Team

Joseph, Joe Tsai

TITLE
Executive Vice Chairman
AGE
55

Daniel Zhang

TITLE
CEO & Executive Chairman
AGE
47
TENURE
4.3 yrs

Mike Evans

TITLE
President & Director
AGE
61
TENURE
4.1 yrs

Jack Ma

TITLE
AGE
55
TENURE
20.7 yrs

Maggie Wu

TITLE
CFO & Head of Strategic Investments
AGE
51
TENURE
6.3 yrs

Michael Yao

TITLE
Senior VP & Head of Corporate Finance

Jeff Zhang

TITLE
Chief Technology Officer
AGE
46
TENURE
3.4 yrs

Robert Lin

TITLE
Investor Relations

Tim Steinert

TITLE
General Counsel & Corporate Secretary
AGE
59
TENURE
12.2 yrs

Jennifer Kuperman

TITLE
Head of International Corporate Communications
TENURE
3.7 yrs
Board of Directors Tenure

Average tenure and age of the Alibaba Group Holding board of directors in years:

5
Average Tenure
55.5
Average Age
  • The tenure for the Alibaba Group Holding board of directors is about average.
Board of Directors

Daniel Zhang

TITLE
CEO & Executive Chairman
AGE
47

Mike Evans

TITLE
President & Director
AGE
61
TENURE
5 yrs

Jack Ma

TITLE
AGE
55
TENURE
20.7 yrs

Eddie Wu

TITLE
Chairman of Alibaba Health
AGE
44

Joseph, Joe Tsai

TITLE
Executive Vice Chairman
AGE
55
TENURE
6.3 yrs

Jerry Yang

TITLE
Independent Director
AGE
50
TENURE
5 yrs

Walter Kwauk

TITLE
Independent Director
AGE
66
TENURE
5 yrs

Masa Son

TITLE
Director
AGE
62
TENURE
19.7 yrs

Chee Tung

TITLE
Independent Director
AGE
82
TENURE
5 yrs

E. Ekholm

TITLE
Independent Director
AGE
56
TENURE
4.3 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 Alibaba Group Holding'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. Alibaba Group Holding 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.

BABA News

Simply Wall St News

What Kind Of Shareholders Own Alibaba Group Holding Limited (NYSE:BABA)?

The big shareholder groups in Alibaba Group Holding Limited (NYSE:BABA) have power over the company. … As Charlie Munger said 'Show me the incentive and I will show you the outcome.' Alibaba Group Holding has a market capitalization of US$449b, so it's too big to fly under the radar. … Insider Ownership Of Alibaba Group Holding While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

Is Alibaba Group Holding Limited's (NYSE:BABA) Capital Allocation Ability Worth Your Time?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Alibaba Group Holding: 0.096 = CN¥78b ÷ (CN¥1.0t - CN¥211b) (Based on the trailing twelve months to June 2019.) Therefore, Alibaba Group Holding has an ROCE of 9.6%. … See our latest analysis for Alibaba Group Holding Is Alibaba Group Holding's ROCE Good? … How Alibaba Group Holding's Current Liabilities Impact 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.

Simply Wall St -

Alibaba Group Holding Limited (NYSE:BABA): Earnings To Drop Next Year

Since Alibaba Group Holding Limited (NYSE:BABA) released its earnings in March 2019, the consensus outlook from analysts appear pessimistic, with profits predicted to drop by 7.3% next year against the past 5-year average growth rate of 17%. … See our latest analysis for Alibaba Group Holding Can we expect Alibaba Group Holding to keep growing? … I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of BABA's earnings growth over these next few years.

Simply Wall St -

Alibaba Group Holding Limited (NYSE:BABA): Secrets For Long Term Investors

Alibaba Group Holding Limited is a financially healthy and robust stock with a proven track record of outperformance. … We all know Alibaba Group Holding, and having this large-cap to cushion your portfolio during a volatile period in the stock market isn't a bad idea. … View our latest analysis for Alibaba Group Holding Alibaba Group Holding Limited, through its subsidiaries, provides online and mobile commerce businesses in the People's Republic of China and internationally.

Simply Wall St -

Introducing Alibaba Group Holding (NYSE:BABA), A Stock That Climbed 96% In The Last Three Years

It hasn't been the best quarter for Alibaba Group Holding Limited (NYSE:BABA) shareholders, since the share price has fallen 15% in that time. … Alibaba Group Holding was able to grow its EPS at 5.3% per year over three years, sending the share price higher. … NYSE:BABA Past and Future Earnings, August 2nd 2019 We know that Alibaba Group Holding has improved its bottom line lately, but is it going to grow revenue?

Simply Wall St -

Does Alibaba Group Holding Limited (NYSE:BABA) Create Value For Shareholders?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Alibaba Group Holding: 13% = CN¥88b ÷ CN¥609b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Alibaba Group Holding Have A Good Return On Equity? … Combining Alibaba Group Holding's Debt And Its 13% Return On Equity While Alibaba Group Holding does have some debt, with debt to equity of just 0.22, we wouldn't say debt is excessive.

Simply Wall St -

Alibaba Group Holding (NYSE:BABA) Has A Pretty Healthy Balance Sheet

We note that Alibaba Group Holding Limited (NYSE:BABA) does have debt on its balance sheet. … NYSE:BABA Historical Debt, July 15th 2019 A Look At Alibaba Group Holding's Liabilities We can see from the most recent balance sheet that Alibaba Group Holding had liabilities of CN¥207.7b falling due within a year, and liabilities of CN¥148.8b due beyond that. … While Alibaba Group Holding 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.

Simply Wall St -

How Alibaba Group Holding Limited (NYSE:BABA) Could Add Value To Your Portfolio

Today I've chosen to put the spotlight on Alibaba Group Holding Limited (NYSE:BABA) due to its excellent fundamentals in more than one area. … BABA is a company with strong financial health as well as a buoyant growth outlook. … For those interested in digger a bit deeper into my commentary, read the full report on Alibaba Group Holding here.

Simply Wall St -

Should You Be Adding Alibaba Group Holding (NYSE:BABA) To Your Watchlist Today?

If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Alibaba Group Holding (NYSE:BABA). … Check out our latest analysis for Alibaba Group Holding Alibaba Group Holding's Earnings Per Share Are Growing. … We would not expect to see insiders owning a large percentage of a CN¥438b company like Alibaba Group Holding.

Simply Wall St -

Is Alibaba Group Holding Limited's (NYSE:BABA) Stock Available For A Good Price After Accounting For Growth?

Alibaba Group Holding is poised for significantly high earnings growth in the near future. … This illustrates that Alibaba Group Holding is overvalued compared to the US market average ratio of 17.68x , and undervalued based on its latest annual earnings update compared to the Online Retail average of 32.25x. … A PE ratio of 32.25x and expected year-on-year earnings growth of 16% give Alibaba Group Holding a quite high PEG ratio of 2.06x.

Simply Wall St -

BABA Company Info

Description

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.

Details
Name: Alibaba Group Holding Limited
BABA
Exchange: NYSE
Founded: 1999
$466,481,814,815
2,603,570,993
Website: http://www.alibabagroup.com
Address: Alibaba Group Holding Limited
969 West Wen Yi Road,
Yu Hang District,
Hangzhou,
311121,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE BABA SPONSORED ADS New York Stock Exchange US USD 19. Sep 2014
DB AHLA SPONSORED ADS Deutsche Boerse AG DE EUR 19. Sep 2014
XTRA AHLA SPONSORED ADS XETRA Trading Platform DE EUR 19. Sep 2014
LSE 0HCI SPONSORED ADS London Stock Exchange GB USD 19. Sep 2014
SWX BABA SPONSORED ADS SIX Swiss Exchange CH CHF 19. Sep 2014
WBAG AHLA SPONSORED ADS Wiener Boerse AG AT EUR 19. Sep 2014
BMV BABA N SPONSORED ADS Bolsa Mexicana de Valores MX MXN 19. Sep 2014
BATS-CHIXE AHLAD SPONSORED ADS BATS 'Chi-X Europe' GB EUR 19. Sep 2014
Number of employees
Current staff
Staff numbers
103,699
Alibaba Group Holding employees.
Industry
Internet and Direct Marketing Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/09/15 01:22
End of day share price update: 2019/09/13 00:00
Last estimates confirmation: 2019/09/13
Last earnings filing: 2019/08/15
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/03/31


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.