BAIDF
Baidu, Inc.
$12.10
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 19.8% above fair value
You pay
$12.10
Bear
$8.08
Fair
$10.10
Bull
$12.12
Bear
$8.08
-33.2%
$0.67 × 12x P/E
Fair
$10.10
-16.5%
$0.67 × 15x P/E
Bull
$12.12
+0.2%
$0.67 × 18x P/E
Adjust Assumptions
15.0x
0.67$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
18.0x
Summary
Applying a 15x P/E to adjusted EPS of $0.67, the base-case value is $10.10 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 0.1490 USD per CNY.
This stock is 42% 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