
Alibaba Group's enterprise value has been steadily increasing over the years, reaching a record high of over $1 trillion in 2021.
The company's financial performance is a key driver of its enterprise value. Alibaba Group's revenue has consistently grown at a rate of over 30% per annum since its IPO in 2014.
Alibaba's net income margin has remained relatively stable, averaging around 25% over the past five years. This is a testament to the company's efficient operations and ability to manage costs.
The company's cash flow generation has also been impressive, with operating cash flow exceeding $10 billion in 2020.
Financial Performance
Alibaba's financial performance is a testament to its massive scale and reach. The company's enterprise value is over $600 billion, making it one of the largest companies in the world.
Alibaba's revenue has been consistently increasing, reaching $72.1 billion in 2020. This growth is largely driven by the company's e-commerce platform, which generates the majority of its revenue.
The company's net income has also been steadily rising, reaching $12.3 billion in 2020. This is a significant improvement from the $8.7 billion net income in 2017.
AHLA.F Performance History
AHLA.F's Enterprise Value has fluctuated significantly over the past ten years, with a mean historical value of 2.74T.
The company's Enterprise Value has shown a notable decrease in recent years, with a current value of 2.25T, which is 8.09% lower than the historical average.
In 2021, AHLA.F's Enterprise Value reached its highest point in the past decade at 3.83T, representing a 15.68% increase from the previous year.
The lowest Enterprise Value recorded in the past ten years was in the March 2015 quarter, at 331.97B.
Here's a summary of AHLA.F's Enterprise Value performance over the past decade:
Financial Statements
Financial Statements are a crucial part of evaluating a company's financial performance. They provide a snapshot of a company's financial health at a specific point in time.
The Balance Sheet, for example, shows a company's assets, liabilities, and equity on a particular date. This information is essential for understanding a company's financial position.
A company's Revenue, as mentioned in the article, can be found on the Income Statement. Revenue is the income generated from the sale of goods or services.
The Income Statement also shows a company's Expenses, which can be broken down into Operating Expenses and Non-Operating Expenses. These expenses can have a significant impact on a company's profitability.
The Cash Flow Statement, another critical financial statement, shows a company's inflows and outflows of cash over a specific period. This information is vital for understanding a company's ability to generate cash and meet its financial obligations.
By analyzing these financial statements, investors and analysts can gain a deeper understanding of a company's financial performance and make informed decisions.
Dividends
Alibaba Group Holding Limited has a payout ratio of 54.4%.
The company has consistently paid out a significant portion of its earnings to shareholders, indicating a commitment to dividend payments.
For the year 2024, the dividend yield is 1.32%.
This is a relatively low dividend yield, suggesting that investors may not be receiving a substantial return on their investment through dividend payments alone.
The company's dividend yield has varied over the years, but it's essential to consider the payout ratio and overall financial performance when evaluating dividend payments.
Financial Analysis
As we dive into the financial analysis of Alibaba, it's clear that the company has been growing steadily over the years. Total assets have increased from $1.7 trillion in 2020 to a projected $2.1 trillion in 2025.
One of the key factors contributing to this growth is the company's ability to manage its liabilities. Total current liabilities have increased from $377.4 billion in 2020 to a projected $509.0 billion in 2025, but this is still significantly lower than the total assets.
Alibaba's cash reserves have also been a subject of interest. Cash has decreased from $321.3 billion in 2020 to a projected $299.6 billion in 2025, but this is still a significant amount considering the company's size.
Here's a breakdown of Alibaba's total assets and liabilities over the years:
Overall, Alibaba's financial analysis suggests a stable and growing company with a strong ability to manage its liabilities.
Fundamental Ratios Accounts
Financial analysis is a crucial aspect of understanding a company's financial health. Alibaba Group's fundamental ratios provide valuable insights into its financial situation.
Alibaba Group's total assets have been steadily increasing, reaching 2.1 trillion in 2025, a significant jump from 1.7 trillion in 2020.
The company's cash reserves have also been growing, reaching 299.6 billion in 2025, up from 321.3 billion in 2020. This suggests that Alibaba Group is managing its cash flow effectively.
Alibaba Group's total current liabilities have been increasing, reaching 509 billion in 2025, up from 377.4 billion in 2020. This could indicate that the company is taking on more debt to finance its operations.
The company's total stockholder equity has also been increasing, reaching 1.2 trillion in 2025, up from 937.5 billion in 2020. This suggests that Alibaba Group's net worth is growing.
Here's a breakdown of Alibaba Group's key financial ratios:
Alibaba Group's net debt has been decreasing, reaching -40.2 billion in 2025, down from -172.1 billion in 2020. This suggests that the company is reducing its debt burden.
The company's retained earnings have also been growing, reaching 722 billion in 2025, up from 554.9 billion in 2020. This indicates that Alibaba Group is generating significant profits.
Company Valuation
Company Valuation is a crucial aspect of financial analysis, as it determines the worth of a business.
The most common method of valuation is the Discounted Cash Flow (DCF) model, which calculates the present value of future cash flows.
This method is particularly useful for valuing companies with a strong track record of profitability and consistent cash generation.
The DCF model takes into account the company's expected future cash flows, the cost of capital, and the growth rate of the business.
A company's valuation can also be influenced by its financial leverage, with more leveraged companies generally commanding a lower valuation multiple.
The Price-to-Earnings (P/E) ratio is another widely used valuation metric, which compares a company's stock price to its earnings per share.
A lower P/E ratio may indicate that a company's stock is undervalued, while a higher P/E ratio may suggest that the stock is overvalued.
In addition to these metrics, financial analysts also consider the company's debt-to-equity ratio and return on equity (ROE) when evaluating its valuation.
A company with a high ROE and low debt-to-equity ratio may be considered more valuable than one with a lower ROE and higher debt-to-equity ratio.
Profit Margin
Profit margin is a key indicator of a company's financial health, and Alibaba Group Holding Limited's numbers are no exception. In December 2021, their profit margin was a healthy 8.47%.
This is a significant improvement from the previous quarter, where they reported a loss of 7.9% in March 2022. It's a stark contrast that highlights the company's efforts to turn things around.
By March 2023, Alibaba's profit margin had rebounded to 11.36%, a testament to their financial stability. This increase in profit margin is likely due to their successful restructuring efforts and cost-cutting measures.
Here's a breakdown of Alibaba's profit margin over the past few years:
By March 2024, Alibaba's profit margin had dipped to 1.52%, a decrease from the previous quarter. This could be a sign that the company is facing new challenges or that their previous efforts are not yet paying off.
Industry and Market
The technology sector is home to some of the world's most valuable companies. The average P/E ratio for the sector is 18.56x, with a weighted average of 39.30x when considering market capitalization.
The e-commerce and auction services segment has some notable players, including Alibaba Group Holding Limited and PDD Holdings Inc. Alibaba's P/E ratio is 18.1x, while PDD's is 12.08x.
Here's a breakdown of the sector's key metrics:
vs. Peers
When comparing Alibaba Group Holding Limited to its peers, one thing stands out: its Enterprise Value is significantly lower than some of the biggest names in the industry.
Alibaba Group Holding Limited's Enterprise Value is less than Tencent Holdings Limited, which has an Enterprise Value of 4.42T. This is a staggering difference, and it highlights the vast scale of some of Alibaba's competitors.
Tencent Holdings Limited, for example, has an Enterprise Value of 4.42T, while Microsoft Corporation has an Enterprise Value of 0. This is likely due to the fact that Microsoft is a software giant with a market cap of $2.96T.
Here's a comparison of the Enterprise Value and Market cap of some of Alibaba's peers:
Alphabet Inc. has an Enterprise Value of 3.74T, which is slightly higher than Apple Inc.'s Enterprise Value of 3.13T. This comparison highlights the vast differences in scale and market value among these industry leaders.
Technology Software & IT Services
The Technology Software & IT Services sector is a fascinating space, with some truly massive companies leading the charge. The average P/E ratio for this sector is a whopping 18.56x, with some companies trading at significantly higher multiples.
One notable example is Shopify Inc., which has a P/E ratio of 115.56x, more than 6 times the sector average. This suggests that investors are extremely optimistic about the company's future growth prospects.
The sector's average EV/Sales ratio is 6.05x, with companies like PDD Holdings Inc. and Meituan Inc. trading at relatively lower multiples. This could indicate that investors are more cautious about these companies' growth rates.
Shopify Inc. also stands out with an EV/EBITDA ratio of 79.76x, significantly higher than the sector average of 27.02x. This suggests that investors are willing to pay a premium for the company's expected future earnings.
The sector's average Yield is a relatively low 0.93%, with companies like Alibaba Group Holding Limited and PDD Holdings Inc. offering yields of 0.8% and 0% respectively. This suggests that investors are more focused on growth rather than income.
Here's a brief summary of the key statistics for the Technology Software & IT Services sector:
The sector's weighted average P/E ratio is 39.30x, suggesting that larger companies in the sector are trading at a premium to their smaller peers.
Key Metrics and Data
Alibaba's market capitalization is a staggering $202 billion. This makes it one of the most valuable companies in the world.
The enterprise value of Alibaba is a whopping $1.5 trillion, giving us an idea of its massive size and scope. This is calculated by adding the company's market capitalization to its debt and minority interest, and then subtracting its cash and cash equivalents.
Alibaba's price to earnings ratio is 17.73, which can be a bit tricky to interpret. But essentially, it means that for every dollar the company earns, its stock price is $17.73.
The enterprise value to sales ratio, also known as EV/Sales, is 1.56. This means that for every dollar in revenue, the company's enterprise value is $1.56. This can be a useful metric for investors looking to gauge the company's value relative to its sales.
Here are some key metrics to keep in mind:
Alibaba's earnings per share (EPS) is $14.68, which is a significant indicator of the company's profitability.
Financial Health
As the world's largest e-commerce company, Alibaba's financial health is a crucial aspect to understand when looking at its enterprise value. Alibaba's revenue growth has been impressive, with a compound annual growth rate (CAGR) of 34% from 2013 to 2019.
Alibaba's net income has also seen significant growth, increasing from $2.9 billion in 2013 to $12.2 billion in 2019. This growth in net income has been driven by the company's expansion into new markets and its increasing focus on cloud computing and artificial intelligence.
Alibaba's financial health has been further bolstered by its strong cash position, with cash and cash equivalents increasing from $10.3 billion in 2013 to $25.6 billion in 2019. This cash reserve provides Alibaba with the flexibility to invest in new initiatives and pursue strategic acquisitions.
Alibaba's debt-to-equity ratio has also been managed effectively, with a ratio of 0.15 in 2019, indicating a relatively low level of debt compared to equity.
Latest News
Alibaba's enterprise value has been steadily increasing in recent years, reaching a staggering $650 billion in 2022. This significant growth is a testament to the company's expanding e-commerce and digital payments platforms.
In 2020, Alibaba's revenue reached $72.9 billion, a 35% increase from the previous year. This impressive growth was driven by the company's strong performance in the Chinese e-commerce market.
Alibaba's market value has been boosted by its successful IPO in 2014, which raised $25 billion. This infusion of capital enabled the company to expand its services and invest in new technologies.
The company's commitment to innovation has paid off, with Alibaba's cloud computing arm, Alibaba Cloud, experiencing rapid growth in recent years. In 2020, Alibaba Cloud's revenue reached $5.8 billion, a 62% increase from the previous year.
Frequently Asked Questions
What is the enterprise value of BABA?
The enterprise value of BABA (Alibaba Group Holding) is approximately $192.963 billion. As of December 18, 2024, this value reflects the company's total market capitalization and debt.
What is the true value of Alibaba stock?
The true value of Alibaba stock is estimated to be around 121.25 USD under the Base Case scenario. This suggests that the stock is currently undervalued by 29% compared to its market price of 85.52 USD.
What is the EV revenue of Alibaba?
Alibaba's current EV-to-Revenue is 1.44, with a historical high of 25.49 and a median of 8.06. This metric indicates the company's valuation relative to its revenue.
Sources
- https://www.wisesheets.io/enterprise-value/AHLA.F
- https://www.macroaxis.com/invest/symbolRatiosCompareOverTime/BABA
- https://www.alphaspread.com/security/nyse/baba/relative-valuation/ratio/enterprise-value-to-fcff
- https://www.marketscreener.com/quote/stock/ALIBABA-GROUP-HOLDING-LIM-17916677/valuation/
- https://strike.market/stocks/BABA
Featured Images: pexels.com