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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 6, 2026.

As of Oct 6, 2026, Fair Value Calculator sees Alibaba Group Holding as the more attractively valued of the two: Amazon.com trades at $251 versus a fair value of $127 (−49.4%), while Alibaba Group Holding trades at $111 versus $120 (+8.2%).
Amazon.com
AMZN · USD · Consumer Discretionary
−49.4%
upside to fair value
overvalued
Price$251
Fair Value$127
Quality56/100
Alibaba Group Holding
BABA · USD · Consumer Discretionary
+8.2%
upside to fair value
fairly valued
Price$111
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
20.7×P/E (TTM)26.3×
24.0×Forward P/E1.8×
3.53×P/S (TTM)n/a
6.67×P/Bn/a
16.1×EV/EBITDAn/a
1.51×PEG0.54×
−49.4%Fair value upside+8.2%
n/aDividend yield0.9%
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%
6.6%Return on assets1.6%
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−3.8%
Balance & size
35.2×Interest coverage (EBIT/interest)6.1×
0.16×Debt / equity0.22×
$2.7TMarket cap$266B
expensiveGrowth qualityexpensive
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 (12.88 is not between the FY 2025 actual of 7.17 and the FY 2027 estimate of 10.48).

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.comof which business quality 56 · market factors 51 Alibaba Group Holdingof which business quality 47 · market factors 37
ProfitabilityMargins and returns on capital today
65
41
Quality GrowthAre margins and returns improving?
52
30
CashflowEarnings quality: real cash, not paper profit
44
13
Fin. StrengthBalance sheet, leverage, solvency risk
80
52
InvestmentDisciplined investing over empire-building
3
76
Low VolatilityCalm price path (market factor)
43
70
MomentumPrice trend over the last 3–12 months (market factor)
55
31
52W MomentumDistance to the 52-week high (market factor)
55
9
Net IssuanceShare count: buybacks or dilution?
72
92

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 familyAmazon.comPrice $251Alibaba Group HoldingPrice $111
DCF Models−38.0%below the price$156−34.4%below the price$72.69
Earnings-Based−27.0%below the price$183+83.0%above the price$203
Dividend Discountn/a−65.1%below the price$38.66
Multiples−48.7%below the price$129−33.6%below the price$73.52
Asset-Based−89.8%below the price$25.53−61.7%below the price$42.48
Growth DCF−71.2%below the price$72.31n/a
Economic Profit−64.1%below the price$90.32−56.1%below the price$48.61
Growth Earnings−5.0%close to the price$239+146.2%above the price$273
Minimum−89.8%below the price$25.53−65.1%below the price$38.66
Maximum−5.0%close to the price$239+146.2%above the price$273
Median−48.7%below the price$129−34.4%below the price$72.69
Geometric mean−58.0%below the price$106−26.6%below the price$81.36

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: 23 of 24 models see the stock below the current price.

Alibaba Group Holding: 12 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 $251
Fair Value $127
Bear $70.41Bull $161
Alibaba Group Holding
Price $111
Fair Value $120
Bear $99.58Bull $170

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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−49.4% · bottom 25%

Alibaba Group Holding · Consumer Discretionary

Quality score48 · below median
Fair value upside+8.2% · above median

Bottom line

As of Oct 6, 2026, Fair Value Calculator sees Alibaba Group Holding as the more attractively valued of the two: Amazon.com trades at $251 versus a fair value of $127 (−49.4%), while Alibaba Group Holding trades at $111 versus $120 (+8.2%).

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

Open Alibaba Group Holding live analysis →

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