Alibaba Group Holding Limited American Depositary Shares each representing eight Ordinary share (BABA)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-13, Alibaba's ADS traded at $110.85, giving it a $324.3B market cap. On FairStock's calculations, that is 25.02 times earnings and 1.66 times book. The Graham Number is $73.81, so the margin of safety is negative 50.18%. That is not a bargain by Graham's arithmetic. The business has real scale: it runs China e-commerce and cloud infrastructure, employs 132,165 people, and in the latest reported quarter, 2026-Q2, it produced revenue of $269.0B and net income of $10.6B, a 3.95% net margin. But the returns are modest: ROE is 6.36% and ROCE is 1.56%. Those are not the numbers of a high-quality compounder. Financial health is mixed. Debt to equity is low at 0.24, and the Piotroski F-Score is 7/9, but trailing free cash flow is negative $48.5B and the FCF yield is -14.9%. The Altman Z-Score of 1.02 also warns of balance-sheet stress. Growth is uneven: revenue is growing, but profit growth in the provided figures is deeply negative, and the latest quarter's margin is thin. On the positive side, EV/EBITDA is only 3.86, beta is 0.50, and the dividend yield is 0.93%. FairStock's score of 36/100 suggests the market is not paying for excellence here. I would want to see cash flow turn positive and returns on capital improve before calling this a classic value opportunity. The price may reflect hope, not proven economics.

In plain English: Alibaba runs online shopping platforms and cloud technology services in China and abroad. The business still sells a lot, but its latest profit is thin and it is burning cash, so the financial picture looks weak. At the recent price, it looks expensive relative to its assets and earnings.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer