Editor's Update – Insights on BABA Stock

By Naomi Wentworth • Wednesday, January 24 08:47 • Permanent Link

Alibaba logged a 7.9% change during today's morning session, and is now trading at a price of $74.02 per share. TBABA's trading volume is 52,392,959 compared to the stock's average volume of 20,570,134.

Alibaba trades -36.16% away from its average analyst target price of $115.95 per share. The 42 analysts following the stock have set target prices ranging from $84.98 to $149.97, 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 197.9% above its Graham number of $24.85, which implies that at its current valuation it does not offer a margin of safety
Alibaba has moved -38.4% over the last year, and the S&P 500 logged a change of 21.1%
Based on its trailing earnings per share of 7.05, Alibaba has a trailing 12 month Price to Earnings (P/E) ratio of 10.5 while the S&P 500 average is 15.97
BABA has a forward P/E ratio of 7.7 based on its forward 12 month price to earnings (EPS) of $9.65 per share
The company has a price to earnings growth (PEG) ratio of 37.77 — 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 4.24
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 $185.05 Billion. Alibaba currently returns an annual dividend yield of 10.0%.

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.