Free Preview — Investor scores & financials for BABA. Sign up for full buy targets.
Start Free

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.

BA

Alibaba Group Holding Limited

BABA

Consumer Cyclical · Specialty Retail · NYSE

$107.45

P/E 18.7×

CEO

Yongming Wu

Sector

Consumer Cyclical

Industry

Specialty Retail

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

Warren Buffett
17%Avoid
Benjamin Graham
43%Avoid
Peter Lynch
40%Avoid
Phil Town (Rule #1)
9%Avoid

Investor model analysis

Details locked

At $107.45, 4 of 4 frameworks say Avoid

Business Quality28/100

Intrinsic Value (DCF)

Warren Buffett's valuation model · select an investor above to switch

Intrinsic Value

Locked — upgrade to view

Buy Below

Locked — upgrade to view

Strong Buy

Locked — upgrade to view

Margin of Safety

Locked — upgrade to view

Unlock buy targets with a free account

Get started

Create a free account to see buy targets, full checklists & risk analysis Get started

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.

Bought $25.7MSold $72.4M
Recent open-market insider trades for BABA
InsiderActionSharesValueDate
Yu SiyingGeneral CounselSell6,764$92KSep 25, 2026
Jiang FangChief People OfficerSell4,889$66KSep 25, 2026
Xu HongChief Financial OfficerSell103,046$1.4MSep 25, 2026
Tsai Joseph CdirectorBuy720,000$10.4MAug 25, 2026
Tsai Joseph CdirectorBuy720,000$10.3MAug 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 trade

Scenario 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

Gross Margin

Net Profit Margin

Revenue Confirms Earnings

Risk factors & concerns — free account

Unlock

Company financials

5-Year Financials

Income statement highlights — annual, USD

Metric20262025202420232022
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 Margin10.1%13.1%8.5%8.4%7.3%
EPS (Diluted)$6.80$8.22$4.71$4.13$3.42
Free Cash FlowLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to view

Full analysis included

See the complete picture for BABA

Exact buy targets, margin of safety, detailed investor checklists, and risk breakdown — all frameworks, all numbers.

Buy & sell targetsFull checklistRisk breakdown

Free: 3 analyses/month · Pay per stock: $4.99 · Pro: $19.99/mo

More Consumer Cyclical stocks

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.