Is Alibaba Group Holding Limited (BABA) Undervalued? Valuation & Fair Price
At $107.45, 4 of the 4 frameworks would pass on Alibaba Group Holding Limited today — Warren Buffett, Benjamin Graham, Peter Lynch, and Phil Town (Rule #1) rate it Avoid. Each model calculates its own fair value and margin of safety; create a free account to see the exact buy price behind every verdict.
Alibaba Group Holding Limited
BABAConsumer Cyclical · Specialty Retail · NYSE
$107.45
P/E 18.7×
Alibaba Group Holding Limited, through its various subsidiaries, furnishes crucial technological infrastructure and extensive marketing channels. This comprehensive support allows merchants, brands, retailers, and other businesses to effectively engage with their customer base, both within the People's Republic of China and across international markets. The company's operations are organized across seven primary segments: China Commerce, International Commerce, Local Consumer Services, Cainiao (its logistics network), Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. The company's extensive digital ecosystem features premier online retail platforms like Taobao and Tmall. Wholesale business-to-business transactions are facilitated through 1688.com and Alibaba.com. Globally, it operates retail platforms such as AliExpress, Lazada, Trendyol, and Daraz. For fresh goods and groceries, it offers Freshippo, and Tmall Global specializes in import e-commerce. Monetization and advertising solutions are provided via Alimama, its proprietary platform, which offers diverse marketing services including pay-for-performance, in-feed, and display ads, supported by the Taobao Ad Network and Exchange for real-time bidding. Logistics operations are primarily handled by the Cainiao Network. Its local consumer services encompass Ele.me for on-demand food and delivery, Koubei for restaurant and local service directories, and Fliggy for travel booking. Alibaba Cloud offers a wide array of services, including elastic computing, data storage, networking, security, database management, big data analytics, and Internet of Things (IoT) solutions. It also supplies hardware, software licenses, installation, and application development and maintenance. The digital media and entertainment division includes Youku, an online video platform; Quark, an information search and content consumption tool; and Alibaba Pictures, collectively offering diverse content spanning films, live events, news feeds, literature, and music. Its innovation portfolio further extends to Amap, a mobile application for digital mapping and navigation; DingTalk, a business communication and efficiency platform; the Tmall Genie smart speaker; and Qwen, an advanced artificial intelligence chatbot. Founded in 1999, Alibaba Group is headquartered in Hangzhou, People's Republic of China.
Investor scorecard
How the four investors rate Alibaba Group Holding Limited
4 of 4 frameworks urge caution
Investor model analysis
Details lockedAt $107.45, 4 of 4 frameworks say Avoid
Intrinsic Value (DCF)
Warren Buffett's valuation model · select an investor above to switch
Intrinsic Value
Locked — upgrade to viewBuy Below
Locked — upgrade to viewStrong Buy
Locked — upgrade to viewMargin of Safety
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Insider & congress activity
Are insiders buying BABA?
Over recent SEC Form 4 filings, BABA insiders bought $25.7M and sold $72.4M of stock across 12 open-market trades. Insiders sell for many reasons, but they buy for one.
| Insider | Action | Shares | Value | Date |
|---|---|---|---|---|
| Yu SiyingGeneral Counsel | Sell | 6,764 | $92K | Sep 25, 2026 |
| Jiang FangChief People Officer | Sell | 4,889 | $66K | Sep 25, 2026 |
| Xu HongChief Financial Officer | Sell | 103,046 | $1.4M | Sep 25, 2026 |
| Tsai Joseph Cdirector | Buy | 720,000 | $10.4M | Aug 25, 2026 |
| Tsai Joseph Cdirector | Buy | 720,000 | $10.3M | Aug 24, 2026 |
Members of Congress have also reported 50 trades in BABA. See the full insider & congress timeline.
Source: SEC Form 4 filings. Open-market buys & sells only. Not investment advice.
See the interactive insider chart & every tradeScenario analysis
Bear, base & bull
Three growth assumptions, three fair values — and where today's price lands
What's working
Key strengths
Identified by Buffett framework analysis
Company financials
5-Year Financials
Income statement highlights — annual, USD
| Metric | 2026 | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
| Revenue | $152.6B | $148.6B | $140.3B | $129.5B | $127.2B |
| Rev. Growth | +2.7% | +5.9% | +8.3% | +1.8% | — |
| Net Income | $15.4B | $19.4B | $11.9B | $10.9B | $9.3B |
| Net Margin | 10.1% | 13.1% | 8.5% | 8.4% | 7.3% |
| EPS (Diluted) | $6.80 | $8.22 | $4.71 | $4.13 | $3.42 |
| Free Cash Flow | Locked — upgrade to view | Locked — upgrade to view | Locked — upgrade to view | Locked — upgrade to view | Locked — upgrade to view |
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Educational Use Only · Not Financial Advice
Analysis, scores, valuations, and buy zones are derived from publicly documented investor frameworks (Buffett, Lynch, Benjamin Graham, Phil Town) for learning purposes only. They are not recommendations from licensed financial advisors. Past performance does not guarantee future results. Prices may be delayed up to 15 minutes. Always conduct your own research before making any investment decisions.