AlphaMadera's AlphaVal page classifies Alibaba Group Holding Limited as a Stable Earnings Power business and values it using P/Adj-EPS × Normalized Multiple, then compares the result to the current market price to flag BABA as undervalued, fairly valued, or overvalued.

What is Alibaba Group Holding Limited's fair value?

Fair value for BABA comes from a P/Adj-EPS × Normalized Multiple model -- the approach AlphaVal selected for this company's Stable Earnings Power classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value BABA?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. BABA was classified as Stable Earnings Power and is valued using P/Adj-EPS × Normalized Multiple, built from BABA's most recent reported fundamentals.

BABA - Alibaba Group Holding Limited

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $180.57 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 65% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Overvalued Mild

Trading 5.3% above fair value

Current Price $110.64

Bear Case $91.89 16.9% downside ($91.89 - $110.64) / $110.64 = -16.9% $6.56 × 14x P/E

Fair Value $105.02 5.1% downside ($105.02 - $110.64) / $110.64 = -5.1% $6.56 × 16x P/E

Bull Case $118.14 6.8% upside ($118.14 - $110.64) / $110.64 = 6.8% $6.56 × 18x P/E

Adjust Assumptions

P/E Multiple

16.0x

Adjusted EPS

6.56$

Key Value Driver

Normalized P/E multiple (16x base case)

Terminal Value % of EV

Implied Market Multiple 16.9x

Market is pricing in (growth)

Plain-Language Summary

Applying a 16x P/E to adjusted EPS of $6.56, the base-case value is $105.02 per share.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (59 analysts) $180.57

Analyst Range $160.00 – $209.00

Divergence from AlphaVal 42%

Warnings

⚠ The company pays out 87% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.

ℹ Wall Street's average price target is $180.57 (from 59 analysts). Our estimate is 42% below the consensus -- consider that gap carefully.

ℹ Financial statements were converted from CNY into USD using USDCNY at 0.1492 USD per CNY.

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