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Baidu, Inc (89888) Fair Value & Analysis

Communication Services · HK · Market cap HK$299B (≈ $38.1B) · ISIN KYG070341048

What is Baidu, Inc really worth?

BI Baidu, Inc 89888 · HK
PriceHK$82.25
Fair ValueHK$28.84
Upside−64.9%
Quality39/100

Below-average quality, and trading another 185% above our fair value of HK$28.84.

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Risks

!Mixed Growth (revenue 5y +3.3 %/yr)
!Thin margins · 1.0% net margin
!Low debt · negative free cash flow
!Narrow moat 24/100
!Evidence only medium, so the estimate is less certain
Evidence: Medium Range HK$28.84 – HK$36.05

Fair value as of: Aug 21, 2026

From 17 valuation models · updated 15 days ago

Fair value updated Aug 21, 2026, revised from HK$39.68 to HK$28.84 (−27.3%) since Aug 13, 2026. Share price −14.5% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (HK$36.05). The favourable scenario is already priced in.
  • Weak quality (39/100) and above fair value at the same time, the margin of safety is missing on both counts.

Price vs Fair Value (3 years)

HK$142.60 HK$71.05 Fair Value HK$28.84 Jun 2023 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.

How to read this chart

39‑month range HK$71.05 – HK$142.60 · fair‑value band HK$28.84 – HK$36.05 · the HK$82.25 price screens above the HK$28.84 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 21, 2026.

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Analysis

Baidu, Inc (89888) currently trades at HK$82.25, while our model-based Fair Value estimate is HK$28.84, implying the stock looks roughly 185.2% overvalued today. The Quality Score stands at 39/100 (below-average quality), in the Communication Services sector. Bull case: the Dividend Discount group reads highest at a median of HK$170.07 per share, and 4 of the 17 models we run sit above the HK$82.25 price. Bear case: the Economic Profit group reads lowest at HK$18.76, and 13 of the 17 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Baidu, Inc generated revenue of HK$129B at a net margin of 1.0%. Revenue declined 1.2% year over year. It earns a return on equity of 0.3%. Net debt stands at HK$72.2B. Fundamentals as of Aug 21, 2026

Our scenario range runs from HK$28.84 (bear case) to HK$36.05 (bull case); at HK$82.25, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 43% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at −6% fair-value upside, at −65%, 89888 screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly HK$12.05 per share, which is 41.8 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence HK$52.92 HK$51.35 HK$41.96 76
EPV HK$14.45 HK$18.76 HK$22.59 74
ROIC Compounder HK$14.45 HK$18.76 HK$22.59 72
All 17 models by family
DCF Models
Owner Earnings HK$58.91 HK$151.44 HK$354.38 69
Earnings-Based
Graham-Dodd HK$10.20 HK$71.10 HK$99.78 63
Lynch FV HK$26.33 HK$37.62 HK$48.90 61
PEG = 1.0 HK$26.33 HK$37.62 HK$48.90 57
EPV HK$14.45 HK$18.76 HK$22.59 74
Dividend Discount
Gordon GGM HK$95.10 HK$207.62 HK$349.32 65
DDM Multi-Stage HK$95.10 HK$170.07 HK$216.37 66
Multiples
P/E Multiple HK$24.74 HK$32.98 HK$41.23 63
P/S Multiple HK$19.12 HK$25.49 HK$31.86 58
P/B Multiple HK$19.12 HK$25.49 HK$31.86 55
EV/EBIT HK$23.39 HK$34.51 HK$45.64 65
EV/EBITDA HK$67.96 HK$93.95 HK$119.93 67
EV/Revenue HK$15.32 HK$26.17 HK$37.01 52
Asset-Based
NCAV (Graham) HK$36.69 HK$49.16 HK$73.38 54
Economic Profit
Residual Income best evidence HK$52.92 HK$51.35 HK$41.96 76
ROIC Compounder HK$14.45 HK$18.76 HK$22.59 72
Growth Earnings
Growth-Adj P/E HK$34.41 HK$49.16 HK$63.90 67

Widest divergence: Dividend Discount (HK$170.07) versus Economic Profit (HK$18.76). Highest evidence: Residual Income (76).

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Key figures & financial health

P/S ratio 2.32 TTM
EPS (TTM) HK$−2.58
Dividend yield 12.0%
Net margin 4.3% FY2025
Return on equity 0.3% TTM
Return on assets (EBIT) 3.9% avg 5y
More key figures
Profitability
Operating margin 10.0% TTM
Growth
Revenue (TTM) HK$129B TTM
Revenue growth (YoY) −1.2% 3y avg +0.6%
EPS growth (YoY) −59.3%
Balance sheet & cash flow
Free cash flow −HK$14.7B FY2025
Net debt HK$72.2B FY2025

Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 39/100

Of which business quality 38 · Market factors (momentum, volatility) 34

Profitability 21
Margins and returns on capital today
Quality Growth 8
Are margins and returns improving?
Cashflow 4
Earnings quality: real cash, not paper profit
Fin. Strength 56
Balance sheet, leverage, solvency risk
Investment 68
Disciplined investing over empire-building
Low Volatility 58
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 21
Distance to the 52-week high (market factor)
Net Issuance 95
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Baidu, Inc. provides internet content, value-added telecommunication-based, internet map, and online audio and video services in the People's Republic of China. It operates in two segments, Baidu General Business and iQIYI. The Baidu General Business segment offers products and services for mobile ecosystem, AI cloud, and intelligent driving.

Full company description

Baidu, Inc. provides internet content, value-added telecommunication-based, internet map, and online audio and video services in the People's Republic of China. It operates in two segments, Baidu General Business and iQIYI. The Baidu General Business segment offers products and services for mobile ecosystem, AI cloud, and intelligent driving. This segment operates Baidu App that enables users to access search, feed, content, and other services through mobile devices; and Haokan, which offers a range of various user generated and professionally produced short videos. It also provides a portfolio of knowledge and information products, including Baidu Wiki, which features columns and videos, such as encyclopedia of intangible cultural heritage, digital museum and recorder of history; Baidu Knows, an online community where users can pose questions to other users, such as individuals, professionals, and enterprises; Baidu Experience, an online platform where users share daily knowledge and experience; ERNIE Bot, new AI-native product that serves as a multi-round conversational AI assistant on both PC and mobile; and Baidu Post, a social media that allows users to post text, image, audio and video content, and reply to original curation forming valuable discussion groups, as well as livestreaming services, including live streaming and AI-powered digital human livestreaming. In addition, the company offers DuerOS smart assistant for the Chinese language; Apollo Go autonomous ride-hailing service; online marketing services; Baidu Maps, a voice-enabled mobile app providing users with travel-related services; and AI chips. The iQIYI segment produces and distributes professionally produced content. This segment offers online entertainment video services, including online videos, experience services, online games, comics, and others. The company was incorporated in 2000 and is headquartered in Beijing, the People's Republic of China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Baidu, Inc reported revenue of HK$126B in FY2025 versus HK$124B in FY2021, a compound +0.2%/yr. Reported net income was HK$5.4B in FY2025, compounding −14.6%/yr from FY2021.

Growth Quality 19/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$126B
Latest YoY
−5.5%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.6%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.3%
Avg. revenue growth/yr (22Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+44.1%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−7.6% (−19.6 + 12.0)
Revenue +0.2%/yr
FY21 HK$124B
FY22 HK$124B
FY23 HK$135B
FY24 HK$133B
FY25 HK$126B
Net income −14.6%/yr
FY21 HK$10.2B
FY22 HK$7.6B
FY23 HK$20.3B
FY24 HK$23.8B
FY25 HK$5.4B
Character of growth · EPS growth decomposed (2014-2025) −1.8 % p.a.
Revenue per share +8.7 %

of which total revenue +8.7 % · buybacks/dilution +0.0 %

EBIT margin −3.5 %
Tax rate −0.1 %
Residual (interest, one-offs) −6.4 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

89888 screens 185% overvalued. Compare with Alphabet Inc →

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Cite: Fair Value Calculator (2026). "Baidu, Inc Fair Value". https://www.fairvalue-calculator.com/stock/89888

Peer Group

Internet Content & Information · 153 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 39 · Bottom 25%
Fair Value upside −28% · Above median
Return on equity (TTM) 0% · Below median
Return on assets 1% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 10% · Above median
Revenue growth −1% · Bottom 25%
Dividend yield (TTM) 12.0% · Top 25%
Debt / equity 0.23× · Higher than median

Valuation Multiples vs Internet Content & Information median · lower = cheaper

P/B 0.14× · Cheaper than 75% of peers
P/S (TTM) 0.30× · Cheaper than 75% of peers
EV/EBITDA 3.2× · Cheaper than 75% of peers

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Internet Content & Information stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).

Stock Price Fair Value vs Fair Value
Alphabet Inc GOOGL $340.65 $145.14 −57%
Meta Platforms, Inc META $571.10 $534.91 −6%
Tencent Holdings 0700 HK$455.20 HK$449.03 −1%
Spotify Technology S.A SPOT $547.51 $211.87 −61%
Reddit, Inc RDDT $153.29 $39.59 −74%
Kuaishou Technology, an investment holding company, 81024 HK$34.50 HK$63.28 +83%
NAVER Corporation 035420 213,500 KRW 231,585 KRW +8%
Tencent Music Entertainment Group 1698 HK$35.14 HK$66.77 +90%
REA Group REA A$177.42 A$88.53 −50%
Pinterest, Inc PINS $23.19 $14.38 −38%

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Frequently asked questions

Is Baidu, Inc (89888) overvalued or undervalued?
As of Aug 21, 2026, our model estimates a fair value of HK$28.84 versus a price of HK$82.25, about −65% upside (overvalued).
What is the fair value of 89888?
Our model-based fair value for Baidu, Inc is HK$28.84 (as of Aug 21, 2026), built from audited fundamentals. The current price: HK$82.25.
What is the quality score of 89888?
Baidu, Inc has a Quality Score of 39/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Baidu, Inc (89888)?
Baidu, Inc reported trailing-twelve-month revenue of about HK$129B (latest available figure, as of Aug 21, 2026).
What is the net profit margin of 89888?
The net profit margin of Baidu, Inc is about 1.0%, meaning it keeps roughly 1.0% of revenue as net income. Based on the latest reported figures.
Does Baidu, Inc pay a dividend?
Baidu, Inc currently shows a dividend yield of about 12.02% relative to its recent price (as of Aug 21, 2026).
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