Here Are Some Essential Facts About Alibaba (BABA)

Large-cap consumer discretionary company Alibaba has moved 0.7% this afternoon, reaching $88.69 per share. In contrast, the average analyst target price for the stock is $141.01.

Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. The company is based in China.

What to Consider if You Are Thinking of Buying Alibaba:

  • BABA has a forward P/E ratio of 8.8 based on its EPS guidance of 10.03.

  • Over the last 4 years, earnings per share (EPS) have been growing at a compounded average rate of -48.7%.

  • The company has a price to earnings growth (PEG) ratio of 49.94.

  • Its Price to Book (P/B) ratio is 0.22

Alibaba Has a Steady Stream of Strong Cash Flows

Date Reported Cash Flow from Operations ($ k) Capital expenditures ($ k) Free Cashflow ($ k) YoY Growth (%)
2023-03-31 199,752,000 -34,352,000 199,752,000 39.92
2022-03-31 142,759,000 -53,324,000 142,759,000 -38.41
2021-03-31 231,786,000 -43,185,000 231,786,000 28.34
2020-03-31 180,607,000 -45,386,000 180,607,000 n/a

Averaging $188.73 Billion over the last 4 years, Alibaba has strong free cash flows. With a compounded average growth rate of 2.6% and coefficient of variability of 19.7%, investors who focus on cash flow stability will want to take a closer look at this company.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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