How Smart Investors Look at Alibaba (BABA).

By Susan Ramirez • Sunday, December 03 18:00 • Permanent Link

Large-cap Consumer Discretionary company Alibaba has moved -1.2% so far today on a volume of 27,998,595, compared to its average of 14,484,830. In contrast, the S&P 500 index moved 1.0%.

Alibaba trades -41.76% away from its average analyst target price of $127.04 per share. The 42 analysts following the stock have set target prices ranging from $87.59 to $159.07, and on average have given Alibaba a rating of buy.

Anyone interested in buying BABA should be aware of the facts below:

Alibaba's current price is 224.7% above its Graham number of $22.79, which implies that at its current valuation it does not offer a margin of safety
Based on its trailing earnings per share of 7.15, Alibaba has a trailing 12 month Price to Earnings (P/E) ratio of 10.3 while the S&P 500 average is None
BABA has a forward P/E ratio of 7.3 based on its forward 12 month price to earnings (EPS) of $10.15 per share
The company has a price to earnings growth (PEG) ratio of 34.26 — a number near or below 1 signifying that Alibaba is fairly valued compared to its estimated growth potential
Its Price to Book (P/B) ratio is 0.18 compared to its sector average of None
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.
Based in Hangzhou, the company has 224,955 full time employees and a market cap of $188.44 Billion.

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.