Is Amazon.com or Alibaba Group Holding more undervalued?

As of Oct 22, 2026, Amazon.com is at −46.5% to fair value and Alibaba Group Holding at +15.3%. Alibaba Group Holding is the more undervalued of the two. Model-based estimate, not financial advice.

Which has higher quality, Amazon.com or Alibaba Group Holding?

Amazon.com has a quality score of 56/100 and Alibaba Group Holding 48/100. Amazon.com leads on quality.

STOCK COMPARISON

Amazon.com vs Alibaba Group Holding: Fair Value & Quality

Both stocks run through our valuation models. Here is how Amazon.com (AMZN) and Alibaba Group Holding (BABA) compare, as of Oct 22, 2026.

As of Oct 22, 2026, Fair Value Calculator sees Alibaba Group Holding as the more attractively valued of the two: Amazon.com trades at $262 versus a fair value of $140 (−46.5%), while Alibaba Group Holding trades at $104 versus $120 (+15.3%).

Amazon.com

AMZN · USD · Consumer Discretionary

−46.5%

upside to fair value

overvalued

Price$262

Fair Value$140

Quality56/100

Alibaba Group Holding

BABA · USD · Consumer Discretionary

+15.3%

upside to fair value

undervalued

Price$104

Fair Value$120

Quality48/100

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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

Amazon.comAlibaba Group Holding

Valuation

21.1×P/E (TTM)25.3×

24.8×Forward P/E1.7×

n/aMedian P/E at FY-end (10 FY, reported earnings)26.3×

3.69×P/S (TTM)n/a

6.96×P/Bn/a

16.8×EV/EBITDAn/a

1.48×PEG0.51×

−46.5%Fair value upside+15.3%

n/aDividend yield1.0%

n/aDividend per share$7.24

Profitability

13.7%Operating margin7.3%

1.90×EBIT margin trend (5Y)0.79×

30.6%Return on equity6.4%

9.5%Return on assets5.5%

Growth

19.6%Revenue growth (YoY)8.6%

11.7%Avg. growth/yr (3Y)5.6%

13.2%Avg. growth/yr (5Y)7.4%

+27.7%Value creation/yr−3.7%

Balance & size

35.2×Interest coverage (EBIT/interest)6.1×

0.16×Debt / equity0.22×

$2.9TMarket cap$261B

expensiveGrowth qualityexpensive

Alibaba Group Holding, median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings: 26.3.

Forward P/E: price divided by the analyst consensus for the first fiscal year that has not started yet. The current year carries special items from quarters already reported. Amazon.com: FY 2026 earnings estimate probably distorted by a special item known to analysts (12.9 is not between the FY 2025 actual of 7.17 and the FY 2027 estimate of 10.56).

Amazon.com leads: 9 to 2 metric wins.

n/a = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Amazon.com Alibaba Group Holding

ProfitabilityHow much profit the company makes from its sales and capital

Quality GrowthAre margins and returns getting better?

CashflowDo the profits arrive as real cash?

Financial strengthDebt, balance sheet and risk of trouble

InvestmentDoes it invest with discipline instead of growing at any price?

Low VolatilityHow calm the share price moves, does not count

MomentumPrice trend of the last 3 to 12 months, does not count

Near the 52-week highDistance to the 52-week high, does not count

New sharesBuys back shares or issues new ones?

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model family	Amazon.comPrice $262	Alibaba Group HoldingPrice $104
DCF Models	−29.0%below the price$186	−76.7%below the price$24.28
Earnings-Based	−30.1%below the price$183	+94.9%above the price$203
Dividend Discount	n/a	−56.4%below the price$45.57
Multiples	−49.0%below the price$134	−30.1%below the price$72.98
Asset-Based	−91.0%below the price$23.52	−69.3%below the price$32.02
Growth DCF	−74.7%below the price$66.36	n/a
Economic Profit	−71.4%below the price$75.16	−49.4%below the price$52.80
Growth Earnings	−9.0%close to the price$239	+162.3%above the price$274
Minimum	−91.0%below the price$23.52	−76.7%below the price$24.28
Maximum	−9.0%close to the price$239	+162.3%above the price$274
Median	−49.0%below the price$134	−49.4%below the price$52.80
Geometric mean	−60.5%below the price$104	−33.7%below the price$69.21

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Amazon.com: 22 of 23 models see the stock below the current price.

Alibaba Group Holding: 11 of 17 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

Amazon.com

Price $262

Fair Value $140

Bear $70.25Bull $176

Alibaba Group Holding

Price $104

Fair Value $120

Bear $99.94Bull $171

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Amazon.com · Consumer Discretionary

Quality score56 · above median

Fair value upside−46.5% · bottom 25%

Alibaba Group Holding · Consumer Discretionary

Quality score48 · below median

Fair value upside+15.3% · above median

Bottom line

Amazon.com has the higher quality score (56/100).

Open Alibaba Group Holding live analysis →

Amazon.com · Alibaba Group Holding

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.