Alibaba Group operates as an online and mobile commerce company in China, providing internet infrastructure, e-commerce, online financial, and internet content services. The company was founded in 1999 and is based in Hangzhou, China.
BABA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Alibaba Group Holding Ltd. To summarize, we found that Alibaba Group Holding Ltd ranked in the 49th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 23.33%. As for the metrics that stood out in our discounted cash flow analysis of Alibaba Group Holding Ltd, consider:
As a business, BABA is generating more cash flow than 98.89% of positive cash flow stocks in the Technology.
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately just 2.85% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
BABA's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 54.23% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CPSI, BELFA, QLYS, UCTT, and CTSH can be thought of as valuation peers to BABA, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
On CNBC's "Mad Money Lightning Round," Jim Cramer said he still likes Roku Inc (NASDAQ: ROKU ). Tapestry Inc (NYSE: TPR ) is okay, said Cramer. He likes album more than stores. Instead of Xpeng Inc - ADR (NYSE: XPEV ), Jim Cramer would buy Alibaba Group Holding … Full story available on Benzinga.com
My Seeking Alpha colleague wrote a brilliant article about how the growing consumption levels in China would affect the future of Alibaba Group (BABA). I fully agree that People's Republic of China is a large industrial nation with plenty of growth potential. What's more, I understand that this country is...
Ahead of what's likely to be the world's largest initial public offering, China's Ant Group Co Ltd is asking lead bankers to personally sign confidentiality pacts and pressing some investors to explain why they should be allowed to attend marketing meetings, sources familiar with the matter said. In doing so, Ant is following a highly unusual process that draws on some of the tactics its former parent and affiliate Alibaba Group Holding Ltd previously used.
Alibaba Group Holding Ltd (NYSE: BABA ) needs to expand its horizons beyond China and Southeast Asia if it is to keep up current levels of growth, an analyst told CNBC Thursday. What Happened: Gil Luria, director of research at D.A. Davidson, talking on the “Squawk Box Asia” program, said that the Jack Ma-co-founded tech giant’s growth strategy of focusing on lower-tier cities in China may not pay off as it faces high competition. The analyst said that with the Chinese market approaching saturation, Southeast Asia is “only going to carry them for so long before they have to get into some of those other markets in order to sustain this … Full story available on Benzinga.com
NEW YORK, Oct. 1, 2020 /PRNewswire/ -- InvestorsObserver issues critical PriceWatch Alerts for AEL, NAK, NKLA, AAL, and BABA. To see how InvestorsObserver's proprietary scoring system rates these stocks, view the InvestorsObserver's PriceWatch Alert by selecting the corresponding link….