BAIDF
Baidu, Inc.
$10.00
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 1.5% below fair value
You pay
$10.00
Bear
$8.12
Fair
$10.15
Bull
$12.18
Bear
$8.12
-18.8%
$0.68 × 12x P/E
Fair
$10.15
+1.5%
$0.68 × 15x P/E
Bull
$12.18
+21.8%
$0.68 × 18x P/E
Adjust Assumptions
15.0x
0.68$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
14.8x
Summary
Applying a 15x P/E to adjusted EPS of $0.68, the base-case value is $10.15 per share.
Warnings
The company's reported profits differ from official accounting profits by 207%. Check what costs are being left out of the adjusted number.
Financial statements were converted from CNY into USD using USDCNY at 0.1498 USD per CNY.
This stock is 52% below its 52-week high, with weak or declining earnings. That combination often signals real trouble, even though the valuation below is based on other fundamentals.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples