Is BABA Stock Undervalued?

A comprehensive valuation analysis of Alibaba Group Holding Ltd (BABA) examining current multiples, intrinsic value, and comparing to analyst expectations.

Updated June 15, 2026•8 min read•View Full Analysis

Valuation Verdict

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Potentially Undervalued

224942603020.7% upside potential

Based on our analysis, Alibaba Group Holding Ltd appears to be potentially undervalued at the current price of $121.06. Our fair value estimate of $272315515337.92 suggests upside potential of approximately 224942603020.7%.

Current Valuation Metrics

Valuation ratios help us understand how the market is pricing BABA relative to its fundamentals. Let's examine the key multiples investors are paying today.

P/E Ratio

19.57

Moderate

P/B Ratio

N/A

P/S Ratio

N/A

EV/EBITDA

N/A

Understanding the Metrics

P/E Ratio: At 19.57x earnings, BABA is trading near the typical market average of 15-20x.
P/B Ratio: Book value data not available.
P/S Ratio: Revenue data not available.
EV/EBITDA: EBITDA data not available.

Fair Value Estimate

Using a discounted cash flow (DCF) model, we estimate the intrinsic value of Alibaba Group Holding Ltd stock. This fundamental analysis looks at the company's ability to generate future cash flows and discounts them back to today's value.

Current Price

$121.06

Fair Value Estimate

$272315515337.92

Implied Return+224942603020.7%

Our DCF model suggests BABA may be undervalued by approximately 224942603020.7%. This implies the market may be pricing in more pessimistic growth expectations than our base case scenario.

Investment Conclusion

Bottom Line

Based on our comprehensive valuation analysis, Alibaba Group Holding Ltd (BABA) appears to be undervalued at $121.06. With a fair value estimate of $272315515337.92, the stock offers potential upside for long-term investors willing to wait for the market to recognize its intrinsic value.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial advisor before making investment decisions. Past performance does not guarantee future results.