Ctrl K
Latest Ratios: P/E Ratio 17.1x · EV/EBITDA 17.2x · ROE 9.4%. (2007–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $260.9B | $301.7B | $319.3B | $184.1B | $269.7B | $296.3B | $623.0B | $518.9B | $478.6B | $479.0B | $277.4B |
| Enterprise Value | $273.7B | $387.8B | $386.1B | $110.7B | $239.2B | $247.7B | $449.5B | $323.6B | $422.7B | $405.1B | $225.5B |
| P/E Ratio → | 17.07 | 2.85 | 2.47 | 2.31 | 3.72 | 4.79 | 4.14 | 3.10 | 5.44 | 7.47 | 5.50 |
| P/S Ratio | 1.71 | 0.29 | 0.32 | 0.20 | 0.31 | 0.35 | 0.87 | 1.02 | 1.27 | 1.91 | 1.75 |
| P/B Ratio | 1.61 | 0.27 | 0.29 | 0.17 | 0.24 | 0.27 | 0.57 | 0.59 | 0.78 | 1.09 | 0.86 |
| P/FCF | — | — | 4.09 | 1.22 | 1.63 | 3.37 | 3.42 | 3.74 | 4.72 | 5.33 | 4.33 |
| P/OCF | 23.00 | 3.96 | 1.94 | 1.00 | 1.35 | 2.11 | 2.79 | 2.80 | 3.17 | 4.06 | 3.38 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.38 | 0.39 | 0.12 | 0.28 | 0.29 | 0.63 | 0.63 | 1.12 | 1.62 | 1.42 |
| EV / EBITDA | 17.22 | 3.63 | 2.20 | 0.70 | 1.62 | 2.10 | 3.27 | 2.42 | 4.49 | 4.44 | 3.62 |
| EV / EBIT | 30.83 | 2.79 | 2.61 | 0.93 | 2.25 | 3.09 | 2.64 | 1.88 | 4.17 | 3.90 | 3.60 |
| EV / FCF | — | — | 4.94 | 0.73 | 1.45 | 2.82 | 2.47 | 2.33 | 4.17 | 4.51 | 3.52 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 39.8% | 39.8% | 40.0% | 37.7% | 36.7% | 36.8% | 41.3% | 44.6% | 45.1% | 57.2% | 62.4% |
| Operating Margin | 5.8% | 5.8% | 14.1% | 12.0% | 11.6% | 8.2% | 12.5% | 17.9% | 15.1% | 27.7% | 30.4% |
| Net Profit Margin | 10.1% | 10.1% | 13.1% | 8.5% | 8.4% | 7.3% | 21.0% | 29.3% | 23.3% | 25.6% | 27.6% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.4% | 9.4% | 11.8% | 7.2% | 6.6% | 5.7% | 15.3% | 20.0% | 16.7% | 16.8% | 15.2% |
| ROA | 5.6% | 5.6% | 7.3% | 4.5% | 4.2% | 3.7% | 10.0% | 13.1% | 10.5% | 10.5% | 10.0% |
| ROIC | 3.8% | 3.8% | 9.6% | 8.0% | 7.1% | 5.4% | 8.4% | 11.0% | 9.3% | 16.3% | 15.3% |
| ROCE | 4.3% | 4.3% | 10.4% | 8.4% | 7.5% | 5.3% | 7.5% | 10.0% | 8.5% | 14.0% | 13.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.23 | 0.23 | 0.23 | 0.18 | 0.17 | 0.16 | 0.17 | 0.17 | 0.22 | 0.29 | 0.28 |
| Debt / EBITDA | 2.43 | 2.43 | 1.41 | 1.30 | 1.33 | 1.50 | 1.32 | 1.10 | 1.43 | 1.37 | 1.47 |
| Net Debt / Equity | — | 0.08 | 0.06 | -0.07 | -0.03 | -0.04 | -0.16 | -0.22 | -0.09 | -0.17 | -0.16 |
| Net Debt / EBITDA | 0.81 | 0.81 | 0.38 | -0.47 | -0.21 | -0.41 | -1.26 | -1.46 | -0.59 | -0.81 | -0.83 |
| Debt / FCF | — | — | 0.85 | -0.49 | -0.18 | -0.55 | -0.95 | -1.41 | -0.55 | -0.82 | -0.81 |
| Interest Coverage | 14.21 | 14.21 | 15.39 | 6.67 | 6.25 | 3.89 | 8.25 | 33.17 | 19.54 | 29.16 | 23.47 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.28 | 1.28 | 1.54 | 1.77 | 1.80 | 1.65 | 1.70 | 1.91 | 1.29 | 1.88 | 1.93 |
| Quick Ratio | 1.28 | 1.28 | 1.49 | 1.71 | 1.72 | 1.58 | 1.62 | 1.84 | 1.25 | 1.85 | 1.93 |
| Cash Ratio | 0.75 | 0.75 | 1.07 | 1.43 | 1.45 | 1.28 | 1.37 | 1.55 | 0.98 | 1.55 | 1.61 |
| Asset Turnover | — | 0.54 | 0.55 | 0.53 | 0.50 | 0.50 | 0.42 | 0.39 | 0.39 | 0.35 | 0.31 |
| Inventory Turnover | — | — | 31.63 | 23.02 | 19.25 | 17.90 | 15.10 | 19.02 | 24.24 | 23.63 | — |
| Days Sales Outstanding | — | — | 27.92 | 26.73 | 26.96 | 30.52 | 29.00 | 33.57 | 37.09 | 41.84 | 51.46 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.9% | 11.2% | 9.2% | 9.8% | — | — | — | — | — | — | — |
| Payout Ratio | 32.6% | 32.6% | 22.5% | 22.6% | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.9% | 35.1% | 40.5% | 43.3% | 26.9% | 20.9% | 24.1% | 32.3% | 18.4% | 13.4% | 18.2% |
| FCF Yield | — | — | 24.5% | 81.9% | 61.4% | 29.7% | 29.2% | 26.7% | 21.2% | 18.8% | 23.1% |
| Buyback Yield | 0.4% | 2.5% | 27.4% | 48.6% | 27.7% | 20.3% | 0.1% | 0.0% | 2.3% | 0.0% | 4.9% |
| Total Shareholder Yield | 2.3% | 13.7% | 36.5% | 58.4% | 27.7% | 20.3% | 0.1% | 0.0% | 2.3% | 0.0% | 4.9% |
| Shares Outstanding | — | $2.4B | $2.4B | $2.5B | $2.6B | $2.7B | $2.7B | $2.7B | $2.6B | $2.6B | $2.6B |
Includes 30+ ratios · 20 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
Bull/bear thesis, analyst target revisions, and earnings execution.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying BABA stock.
Alibaba Group Holding Limited's current P/E ratio is 17.1x. The historical average is 4.4x. This places it at the 100th percentile of its historical range.
Alibaba Group Holding Limited's current EV/EBITDA is 17.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 3.2x.
Alibaba Group Holding Limited's return on equity (ROE) is 9.4%. The historical average is 30.5%.
Based on historical data, Alibaba Group Holding Limited is trading at a P/E of 17.1x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Alibaba Group Holding Limited's current dividend yield is 1.87% with a payout ratio of 32.6%.
Alibaba Group Holding Limited has 39.8% gross margin and 5.8% operating margin.
Alibaba Group Holding Limited's Debt/EBITDA ratio is 2.4x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Margin compression from reinvestment
Valuation Reflects Deep Conglomerate Discount
BABA's forward P/E of 2.77 and EV/EBITDA of 1.47 suggest the market is pricing in severe earnings contraction or a permanent impairment of its core business model, a stark contrast to peers like PDD trading at 8.83x forward earnings.
The extreme discount between the trailing P/E of 18.16 and the forward multiple of 2.77 implies analysts expect a dramatic collapse in future earnings, likely driven by the margin compression and reinvestment cycle highlighted in prior analysis. This valuation appears to price BABA more as a distressed asset than a technology platform, especially when compared to Amazon's 37.16x P/E. The market seems to be applying a significant geopolitical and regulatory risk premium, overshadowing the company's fortress balance sheet and potential for future cash returns.
Operating Margin Erosion Signals Structural Shift
Operating margin has compressed from a peak of 14.9% in 2025Q2 to just 2.2% in 2026Q2, indicating that heavy reinvestment in logistics and competition is overwhelming the core marketplace's historical earning power.
The volatility in gross margin, ranging from 33.3% to 44.9%, masks the more concerning trend in operating margin, which has fallen to low single digits. This suggests the company's cost structure has fundamentally changed, with the asset-light advertising model now diluted by lower-margin direct retail and logistics operations. The net margin of 10.12% is likely inflated by volatile 'Other Income' from equity investments, making operating margin the more reliable indicator of core business health, which appears under significant pressure.
ROIC Collapse Undermines Compounding Thesis
Return on Invested Capital (ROIC) has deteriorated from a healthy 2.9% in 2025Q3 to a negative 0.1% in 2026Q4, indicating the massive capital expenditure program is destroying, not creating, value in the near term.
The ROIC trend is the most alarming signal, as it has turned negative despite a still-positive ROE, which is being supported by leverage. This divergence suggests the company is deploying capital into projects with returns below its cost of capital, a classic sign of value destruction. The collapse in ROIC from 2.9% to negative territory in just three quarters aligns with the CapEx surge and margin compression, indicating the strategic pivot toward infrastructure is currently failing to generate adequate returns.
Low Leverage Provides Strategic Flexibility
Despite a recent increase, the debt-to-equity ratio of 0.24 remains exceptionally low, and interest coverage of 8.22x in 2027Q1 indicates the balance sheet can comfortably absorb the current investment cycle without refinancing risk.
The company's leverage profile is a key strength, with D/E well below peers like JD.com (0.36) and Amazon (0.37). This low leverage provides a crucial buffer to fund the aggressive CapEx program and shareholder returns without straining the balance sheet. However, the interest coverage ratio has shown volatility, dipping to 2.25x in 2024Q4 before recovering, which suggests that while the debt load is manageable, the earnings power to service it is not yet stable.
The Misleading Safety of the Current Ratio
The current ratio of 1.36 appears healthy but is misleading for BABA's model, as it is inflated by a massive cash pile that is being actively deployed for CapEx and buybacks, not held as a permanent liquidity buffer.
For a platform business like BABA, the current ratio is often misapplied because it treats all current assets as equally liquid. The company's cash position has fallen by over $93B in recent quarters to fund investments, meaning the ratio is a snapshot of a rapidly changing liquidity profile. A more appropriate metric would be the ratio of operating cash flow to short-term obligations, which would better reflect the company's ability to fund its operations and near-term liabilities from its core business, rather than relying on a dwindling cash reserve.