Don't Take a Position in Alibaba Stocks Without Knowing Its Fundamentals!

By Chris Stiles • Friday, September 05 10:06 • Permanent Link

Large-cap Real Estate company Alibaba has moved 2.6% so far today on a volume of 5,936,644, compared to its average of 14,508,943. In contrast, the S&P 500 index moved 0.0%.

Alibaba trades -17.4% away from its average analyst target price of $162.63 per share. The 41 analysts following the stock have set target prices ranging from $131.19553 to $195.11755, and on average have given Alibaba a rating of buy.

If you are considering an investment in BABA, you'll want to know the following:

Alibaba's current price is 287.3% above its Graham number of $34.68, which implies that at its current valuation it does not offer a margin of safety
Alibaba has moved 61.3% over the last year, and the S&P 500 logged a change of 20.2%
Based on its trailing earnings per share of 8.64, Alibaba has a trailing 12 month Price to Earnings (P/E) ratio of 15.5 while the S&P 500 average is 29.3
BABA has a forward P/E ratio of 13.6 based on its forward 12 month price to earnings (EPS) of $9.87 per share
Its Price to Book (P/B) ratio is 0.31 compared to its sector average of 1.94
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 Causeway Bay, the company has 123,711 full time employees and a market cap of $325.6 Billion. Alibaba currently returns an annual dividend yield of 5.8%.

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.