Key Factors to Evaluate Before Investing in Baidu (BIDU)

By Tamara Parker • Monday, October 21 15:09 • Permanent Link

One of the losers of today's trading session was Baidu. Shares of the Software company plunged -3.2%, and some investors may be wondering if its price of $91.33 would make a good entry point. Here's what you should know if you are considering this investment:

Baidu has moved -12.1% over the last year, and the S&P 500 logged a change of 39.1%
BIDU has an average analyst rating of buy and is -30.85% away from its mean target price of $132.07 per share
Its trailing earnings per share (EPS) is $7.72
Baidu has a trailing 12 month Price to Earnings (P/E) ratio of 11.8 while the S&P 500 average is 29.3
Its forward earnings per share (EPS) is $11.38 and its forward P/E ratio is 8.0
The company has a Price to Book (P/B) ratio of 0.13 in contrast to the S&P 500's average ratio of 4.74
Baidu is part of the Technology sector, which has an average P/E ratio of 30.01 and an average P/B of 3.91
BIDU has reported YOY quarterly earnings growth of 6.2% and gross profit margins of 0.5%
The company has a free cash flow of $27.58 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter
Baidu, Inc. engages in the provision of internet search services in China. It operates through two segments: Baidu Core and iQIYI. The company offers Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Baidu Health that helps users to find the doctor and hospital for healthcare needs; and Haokan, a short video app. It also provides Baidu Knows, an online community where users can ask questions to other users; Baidu Wiki; Baidu Experience; Baidu Post; ERNIE Bot, conversational AI bot; Baidu Wenku; Baidu Maps, a voice-enabled mobile app that provides travel-related services; Baidu Drive; Baijiahao; and DuerOS, a smart assistant platform. In addition, it offers online marketing services, which include pay for performance, 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; other marketing services that include display-based marketing services and other online marketing services based on performance criteria other than cost per click; mobile ecosystem, a portfolio of apps, including Baidu App, Haokan, and Baidu Post; various cloud services and solutions, such as platform as a service, software as a service, and infrastructure as a service; self-driving services, including maps, automated valet parking, navigation pilot, electric vehicles, and robotaxi fleets, as well as Xiaodu smart devices. Further, the company provides iQIYI, an online entertainment service, including original and licensed content; other video content and membership; and online advertising services. It has strategic partnership with Zhejiang Geely Holding Group. The company was formerly known as Baidu.com, Inc. Baidu, Inc. was incorporated in 2000 and is headquartered in Beijing, China.

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.