Latest Ratios: P/E Ratio -50.9x · EV/EBITDA 14.8x · ROE 1.9%. (2003–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $27.8B | $44.8B | $29.5B | $42.2B | $40.2B | $52.3B | $74.5B | $44.1B | $55.4B | $81.9B | $57.1B |
| Enterprise Value | $38.7B | $117.3B | $84.0B | $101.6B | $78.4B | $107.0B | $121.3B | $84.2B | $92.7B | $114.3B | $90.5B |
| P/E Ratio → | -50.94 | 11.11 | 1.28 | 2.16 | 5.77 | 5.30 | 3.32 | 19.75 | 2.01 | 4.48 | 4.92 |
| P/S Ratio | 1.46 | 0.35 | 0.22 | 0.31 | 0.32 | 0.42 | 0.70 | 0.41 | 0.54 | 0.97 | 0.81 |
| P/B Ratio | 0.65 | 0.15 | 0.10 | 0.16 | 0.17 | 0.23 | 0.39 | 0.26 | 0.32 | 0.63 | 0.58 |
| P/FCF | — | — | 2.25 | 1.67 | 2.26 | 5.89 | 3.95 | 4.72 | 4.07 | 4.32 | 4.86 |
| P/OCF | — | — | 1.39 | 1.15 | 1.53 | 2.60 | 3.08 | 1.55 | 1.54 | 2.49 | 2.57 |
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 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.91 | 0.63 | 0.75 | 0.63 | 0.86 | 1.13 | 0.78 | 0.91 | 1.35 | 1.28 |
| EV / EBITDA | 14.79 | 3.70 | 2.01 | 2.35 | 2.18 | 3.23 | 3.27 | 2.96 | 2.92 | 4.17 | 4.93 |
| EV / EBIT | 24.91 | 12.35 | 2.67 | 3.57 | 6.02 | 7.54 | 4.63 | 32.13 | 3.17 | 4.99 | 5.78 |
| EV / FCF | — | — | 6.41 | 4.01 | 4.41 | 12.05 | 6.43 | 9.02 | 6.81 | 6.04 | 7.70 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 43.9% | 43.9% | 50.3% | 51.7% | 48.3% | 48.3% | 48.5% | 41.5% | 49.4% | 49.2% | 50.0% |
| Operating Margin | 8.0% | 8.0% | 16.0% | 16.2% | 12.9% | 8.4% | 13.4% | 5.9% | 15.2% | 18.5% | 14.2% |
| Net Profit Margin | 4.3% | 4.3% | 17.8% | 15.1% | 6.1% | 8.2% | 21.0% | 1.9% | 27.0% | 21.6% | 16.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 1.9% | 1.9% | 8.7% | 8.1% | 3.3% | 4.9% | 12.3% | 1.2% | 18.0% | 16.0% | 12.8% |
| ROA | 1.3% | 1.3% | 5.7% | 5.1% | 2.0% | 2.9% | 7.1% | 0.7% | 10.0% | 8.4% | 7.1% |
| ROIC | 2.2% | 2.2% | 4.8% | 5.5% | 4.3% | 3.1% | 4.8% | 2.2% | 6.2% | 8.0% | 6.3% |
| ROCE | 2.9% | 2.9% | 6.3% | 6.8% | 5.2% | 3.7% | 5.6% | 2.6% | 7.6% | 10.3% | 7.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.34 | 0.34 | 0.28 | 0.32 | 0.38 | 0.41 | 0.43 | 0.43 | 0.37 | 0.33 | 0.45 |
| Debt / EBITDA | 3.06 | 3.06 | 1.90 | 1.95 | 2.54 | 2.77 | 2.23 | 2.59 | 2.05 | 1.59 | 2.41 |
| Net Debt / Equity | — | 0.25 | 0.19 | 0.23 | 0.16 | 0.24 | 0.24 | 0.23 | 0.21 | 0.25 | 0.34 |
| Net Debt / EBITDA | 2.28 | 2.28 | 1.30 | 1.37 | 1.06 | 1.65 | 1.26 | 1.41 | 1.17 | 1.18 | 1.82 |
| Debt / FCF | — | — | 4.16 | 2.34 | 2.15 | 6.15 | 2.48 | 4.29 | 2.74 | 1.72 | 2.84 |
| Interest Coverage | 3.41 | 3.41 | 11.14 | 8.76 | 4.47 | 4.15 | 8.44 | 0.89 | 15.51 | 14.18 | 13.53 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.76 | 1.76 | 2.09 | 3.01 | 2.67 | 2.86 | 2.68 | 2.89 | 2.73 | 1.84 | 2.16 |
| Quick Ratio | 1.76 | 1.76 | 2.01 | 2.99 | 2.66 | 2.84 | 2.67 | 2.89 | 2.73 | 1.84 | 2.16 |
| Cash Ratio | 1.34 | 1.34 | 1.57 | 2.54 | 2.19 | 2.42 | 2.37 | 2.55 | 2.45 | 1.45 | 1.95 |
| Asset Turnover | — | 0.29 | 0.31 | 0.33 | 0.32 | 0.33 | 0.32 | 0.36 | 0.34 | 0.34 | 0.39 |
| Inventory Turnover | — | — | 11.04 | 46.58 | 52.11 | 43.54 | 89.25 | — | — | — | — |
| Days Sales Outstanding | — | 38.83 | 39.15 | 45.07 | 62.38 | 43.48 | 39.51 | 37.81 | 31.34 | 21.74 | 25.17 |
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 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | 43.9% | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | 196.2% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | 9.0% | 78.2% | 46.3% | 17.3% | 18.9% | 30.2% | 5.1% | 49.8% | 22.3% | 20.3% |
| FCF Yield | — | — | 44.4% | 60.0% | 44.3% | 17.0% | 25.3% | 21.2% | 24.6% | 23.1% | 20.6% |
| Buyback Yield | 2.9% | 12.0% | 21.4% | 11.3% | 4.8% | 14.5% | 17.5% | 11.2% | 6.0% | 2.1% | 0.0% |
| Total Shareholder Yield | 2.9% | 12.0% | 21.4% | 11.3% | 4.8% | 14.5% | 17.5% | 11.2% | 6.0% | 46.0% | 0.0% |
| Shares Outstanding | — | $343M | $350M | $355M | $351M | $352M | $345M | $349M | $349M | $350M | $348M |
Includes 30+ ratios · 23 years · Updated daily
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Quick answers to the most common questions about buying BIDU stock.
Baidu, Inc.'s current P/E ratio is -50.9x. The historical average is 8.2x.
Baidu, Inc.'s current EV/EBITDA is 14.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 5.1x.
Baidu, Inc.'s return on equity (ROE) is 1.9%. The historical average is 26.9%.
Based on historical data, Baidu, Inc. is trading at a P/E of -50.9x. Compare with industry peers and growth rates for a complete picture.
Baidu, Inc. has 43.9% gross margin and 8.0% operating margin.
Baidu, Inc.'s Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Core Business Decay Funding AI Bet
Extreme Value Discount vs. Growth Peers
Baidu trades at a forward P/E of just 2.24 and a P/B of 0.70, which represents a profound discount to both its global search peer Alphabet (31.67 P/E) and domestic cloud rivals like Alibaba (16.89 P/E), as indicated by current valuation multiples.
The market's pricing implies an expectation of near-zero earnings growth or a terminal value collapse for the legacy search business. The sub-1.0 P/B ratio is particularly striking, suggesting the market assigns negative value to Baidu's massive goodwill and intangible investments in AI and autonomous driving, which now comprise a significant portion of its balance sheet.
Structural Gross Margin Erosion Under AI Transition
According to the reported financial ratios, Baidu's gross margin has compressed by over 1,200 basis points from a peak of 51.7% in 2024Q2 to 39.0% in 2026Q2, a deterioration that appears structurally tied to higher content costs and a less profitable revenue mix.
This margin compression, alongside a volatile operating margin that recently turned negative, indicates the core business is no longer generating sufficient profit to comfortably fund its strategic pivot. The negative 2025Q3 operating margin of 3.5% amid a 41.2% gross margin suggests that R&D and other operating expenses have grown to a level where they overwhelm the top line during periods of revenue stress.
Persistently Depressed Capital Efficiency
Based on reported figures, Baidu's ROIC has stagnated between 0.2% and 1.4% over the last ten quarters, a stark contrast to the double-digit returns generated by global tech leaders like Alphabet (25.1% ROIC).
This chronic underperformance in return on invested capital suggests the company is not effectively converting its large asset base, which includes ballooning goodwill, into earnings. The trend indicates that recent capital deployments have failed to yield meaningful incremental returns, raising concerns about the long-term value creation potential of its AI-heavy investment cycle.
Comfortable Leverage Masks Asset-Side Risk
As per the recent balance sheet data, the debt-to-equity ratio stands at a manageable 0.38, and the 2026Q2 interest coverage ratio of 4.97 suggests debt service is not an immediate concern.
However, this comfortable leverage profile should be viewed in conjunction with the company's asset composition. The significant growth in goodwill to $36.8 billion introduces a different kind of solvency risk; if the acquisitions underpinning this goodwill fail to deliver expected returns, impairments could rapidly erode book equity and alter this favorable leverage picture.
Price-to-Book Ratio Misapplied to Asset-Light R&D Model
The P/B ratio of 0.70, while signaling deep value, is frequently misapplied to high-intensity R&D firms like Baidu because it fundamentally misprices the company's primary assets—proprietary algorithms and data ecosystems—which are expensed as incurred rather than capitalized on the balance sheet.
This accounting treatment depresses book equity, distorting the ratio downward and creating a misleading impression of asset value. A more appropriate alternative metric would be an EV/Sales multiple benchmarked against other platform businesses, or an adjusted book value that capitalizes a portion of historical R&D spend to better reflect the long-lived intellectual property driving future cash flows.