Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. It operates through four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. The company operates Taobao Marketplace, a social commerce platform; Tmall, a third-party online and mobile commerce platform for brands and retailers; Alimama, a monetization platform; 1688.com and Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, Trendyol, and Daraz that are e-commerce platforms; and Tmall Global and Kaola, which are import e-commerce platforms. It also operates Lingshoutong that connects FMCG manufacturers and their distributors to small retailers; Cainiao Network logistic services platform; Ele.me, an on-demand delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform. In addition, the company offers pay-for-performance, in-feed, and display marketing services; and Taobao Ad Network and Exchange, a real-time online bidding marketing exchange. Further, it provides elastic computing, database, storage, virtualization network, large-scale computing, security, management and application, big data analytics, machine learning platform, and Internet of Things services. Additionally, the company operates Youku, an online video platform; Alibaba Pictures and other content platforms that provide online videos, films, live events, news feeds, literature, music, and others; Amap, a mobile digital map, navigation, and real-time traffic information app; DingTalk, a business efficiency app; and Tmall Genie, an AI-enabled smart speaker. The company was incorporated in 1999 and is based in Hangzhou, the People's Republic of China.
Alibaba Group Holding Limited
- Revenue ¥717.29B
- Gross Profit ¥296.08B
- Net Income ¥150.58B
- Gross Margin 41.28%
- Net Margin 20.99%
- Free Cash Flow (FCF) ¥188.6B
- Free Cash Flow To Equity (FCFE) ¥181.54B
- Dividends Paid ¥0
- Debt Repayment ¥-7.06B
- Net Stock Repurchased ¥598M
Discounted Cash Flow
Use the Discounted Cash Flow (DCF) tool to estimate the intrinsic value of Alibaba Group Holding Limited stock.
| Assumptions | |||
|---|---|---|---|
| Forecast Period | |||
| Required Return | |||
| Low | Mid | High | |
| Revenue Growth | |||
| FCFE Margin | |||
| Perpetual Growth | |||
| Terminal P/FCFE | |||
The number of assumptions to make for each forecast.
The number of years to forecast future cash flows. These future cash flows are used to determine the intrinsic present value for the stock.
It is generally recommended to select a longer period for more established companies with stable financial histories.
The compounding annual rate of return required, according to your investment objectives. This is used to discount back future cash flows.
Estimate the annual compounding revenue growth rate. You can use the historical compounding annual growth rates provided below as a guide.
- 1 Year 34.07%
- 3 Years 34.58%
- 5 Years 37.31%
- 10 Years 37.31%
Estimate levered free cash flow (FCFE) as a percentage of revenue. You can use the historical margins provided below as a guide.
- 1 Year 25.31%
- 3 Years 22.72%
- 5 Years 17.56%
- 10 Years 17.56%
Estimate the compounding annual growth rate at which revenues will grow in perpetuity after the forecast period. This is the first method used to calculate the terminal value.
Values of between 2% and 5% are generally recommended.
Estimate the price to levered free cash flow (P/FCFE) for the stock after the forecast period. This is the second method used to calculate the terminal value.
This method for calculating the terminal value can be preferred for shorter forecast periods. You can use the historical rations provided below as a guide.
- 1 Year 3.38
- 3 Years 4.6
- 5 Years -7.41
- 10 Years -7.41
| Chief Executive Officer (CEO) | Mr. Yong Zhang |
|---|---|
| Full-Time Employees | 259.32K |
| Industry | Internet Retail |
| Sector | Consumer Cyclical |
| Country | CN |
| Website | https://www.alibabagroup.com |