The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 79 | 18.1x | 20.8x | Top tier | |
Growth | 36 | 2.7% | 6.1% | Bottom tier | |
Quality | 35 | 4.2% | 6.6% | Bottom tier | |
Safety | 64 | 0.5x | 0.7x | Around median | |
Capital Return | 23 | — | 2.02% | Bottom tier | |
Momentum | 26 | -1.5% | 4.1% | Bottom tier | |
Sentiment | 44 | 19 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Alibaba Group Holding Limited (BABA) is considered one of the largest technology and e-commerce companies in the world, with its business anchored on providing domestic and international e-commerce services, advanced cloud computing, logistics solutions, and instant commerce. In the fourth quarter of fiscal year 2026 ended March 31, 2026, the Group achieved total revenue of RMB 243.4 billion, representing an 11% year-on-year growth on a like-for-like basis after excluding revenues from Sun Art and Intime. GAAP net income rose by 96% to reach RMB 23.5 billion, primarily driven by positive changes in the fair value of the Group's equity investments and the impacts of disposing of certain non-core assets in the previous year.
On a segmental performance level, the China e-commerce group achieved revenue of RMB 122 billion, a 6% increase, while Customer Management Revenue (CMR) grew by 8% on a like-for-like basis after neutralizing the impact of direct financial subsidies to merchants. In the cloud segment, external revenue growth for the Cloud Intelligence Group accelerated to 40%, driven by triple-digit growth in AI products for the eleventh consecutive quarter, with AI revenue reaching RMB 9 billion in this quarter (an annual run rate of RMB 36 billion or USD 5.3 billion), representing 30% of total external cloud revenue. Despite this strong growth, the Group's adjusted EBITA decreased by 84% as a result of intensive strategic investments in technology, instant commerce, and user experience.
Alibaba's stock is currently trading within a 52-week range of USD 103.71 - 192.67, which is significantly below the analyst consensus average price target of USD 189.17. The current analyst consensus indicates a strong 'Buy' recommendation, with the high-end analyst price target estimate at USD 225, while the low-end stands at USD 140. This valuation reflects market optimism regarding the successful commercial monetization of cloud AI investments, despite temporary pressures on free cash flows and ongoing geopolitical tensions.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
The Cloud Intelligence Group achieved a significant acceleration in external revenue growth to reach 40% during the quarter ended March 31, 2026. AI products contributed 30% of these external revenues, recording triple-digit growth for the eleventh consecutive quarter with quarterly revenue of RMB 9 billion and an annual run rate of RMB 36 billion. Management expects AI to exceed 50% of external cloud revenues within approximately one year to become the primary engine of growth.
Massive and aggressive investments in AI infrastructure and data centers led to a free cash flow outflow of RMB 17.3 billion during the latest quarter, despite achieving an operating cash inflow of RMB 9.4 billion. However, management emphasizes that its financial position is extremely strong with USD 38 billion in net cash, granting it the full capability to continue heavy investing over the next two years to capitalize on historic AI opportunities. Management also expects cash flows to improve as instant commerce losses narrow and the international commerce (AIDC) segment transitions to profitability.
The Bailian platform (Model Studio) is experiencing extremely rapid growth, with token usage volume multiplying by more than 10 times from late 2025 to May 2026. The Annual Recurring Revenue (ARR) for the platform and associated software currently exceeds RMB 8 billion. The company expects with high confidence that this rate will surpass the RMB 10 billion milestone in the June 2026 quarter, and reach RMB 30 billion by the end of the current year, supported by the high margins of this high-quality revenue.
Automated analysis for informational purposes only — not investment advice.
On June 9 and 11, 2026, the U.S. Department of Defense (Pentagon) added Alibaba, alongside Baidu and BYD, to the blacklist on allegations of being linked to the Chinese military. This action raises serious geopolitical concerns that could affect international investor confidence and restrict the ability of U.S. funds to invest in the stock. Although this decision does not directly impact the Group's domestic operations in China, it imposes additional regulatory challenges on its international expansion and the acquisition of advanced technology.
The instant commerce segment achieved robust revenue growth of 57% to reach RMB 20 billion in the fourth quarter of fiscal year 2026, driven by a 2.7-fold increase in order volume compared to the previous year. This segment effectively contributed to supporting traditional e-commerce by improving customer acquisition rates and increasing transactions on platforms such as Freshippo and Tmall Supermarket. Management expresses full confidence in improving unit economics (UE) and achieving full profitability for this segment by the end of fiscal year 2027 through enhancing logistics efficiency and optimizing the shopping basket.