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 67th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 147.33%. 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 98.88% of positive cash flow stocks in the Technology.
The business' balance sheet suggests that 0% of the company's capital is sourced from debt; this is greater than only 3.4% of the free cash flow producing stocks we're observing.
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 63.37% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BABA, try DTST, HCKT, AMZN, PCOM, and GDDY.
Alibaba Group Holding Limited (NYSE:BABA) Defends Accounting Practices With the coronavirus pandemic weighing down operations and investments, Alibaba group Holding has reported its first quarterly profit decline since 2016. Revenue in what Chief financial officer Maggie Wu called “a challenging quarter” rose 22.3% in the quarter to March 31 to 114.31 billion yuan ($16.08 billion) […]
As American small and medium-sized businesses (SMBs) fight through the challenges of COVID-19, Alibaba.com, one of the world’s largest B2B ecommerce marketplaces and a business unit of Alibaba Group (NYSE: BABA), today unveiled three new products and…
Alibaba.com is introducing new tools targeted specifically at U.S. merchants. Alibaba is also announcing Alibaba.com Freight, which will allow merchants compare, book and track ocean and air freight through a partnership with Freightos. Read more here. The post [Freightos in TechCrunch] Alibaba adds financing tools and online trade shows for U.S. merchants appeared first on OurCrowd .
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Chinese e-commerce major Alibaba Group Holdings (NYSE: BABA ) has announced the launch of Alibaba.com Freight, which will help small and medium-sized businesses (SMBs) to simplify the movement of their bulk freight. The freight matching service will work via a transparent dashboard that lets users instantly compare, book, manage and track ocean and air freight in real-time. The freight matching platform is powered by logistics freight routing company Freightos. Apart from the freight service, Alibaba.com has also announced two more products and services, including Payment Terms that help users have a better cash flow control and Online Trade Shows USA that looks to connect U.S. manufacturers and wholesalers with business buyers via virtual events. John Caplan, the president of North Ame...