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Alibaba Group Holding Ltd (9988) Fair Value & Analysis

Consumer Cyclical · HK · Market cap HK$2.1T (≈ $264B) · ISIN KYG017191142

What is Alibaba Group Holding Ltd really worth?

AG Alibaba Group Holding Ltd 9988 · HK
PriceHK$110.10
Fair ValueHK$132.03
Upside+19.9%
Quality54/100

A solid business, trading 17% below our fair value of HK$132.03.

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Strengths

Solidly profitable · 10.1% net margin

Risks

!Expensive Growth (revenue 5y +7.4 %/yr)
!Low debt · negative free cash flow
!Mixed vs. peers (7/14)
!Narrow moat 40/100
!Evidence only medium, so the estimate is less certain
!Weak on future: 15 out of 100
!Weak on dividend: 19 out of 100

For context

·0.93% dividend yield
Evidence: Medium Range HK$97.00 – HK$167.08

Fair value as of: Sep 5, 2026

From 17 valuation models · updated today

Fair value updated Sep 5, 2026, revised from HK$73.35 to HK$132.03 (+80.0%) since Aug 27, 2026. Share price −14.1% 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 in the lower half of our model range, the side with the larger margin of safety.
  • Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.

Price vs Fair Value (5 years)

HK$221.61 HK$58.80 Fair Value HK$132.03 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.

How to read this chart

60‑month range HK$58.80 – HK$221.61 · fair‑value band HK$97.00 – HK$167.08 · the HK$110.10 price screens below the HK$132.03 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 5, 2026.

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Analysis

Alibaba Group Holding Ltd (9988) currently trades at HK$110.10, while our model-based Fair Value estimate is HK$132.03, implying the stock looks roughly 16.6% undervalued today. The Quality Score stands at 54/100 (solid quality), in the Consumer Cyclical sector. Bull case: the Growth Earnings group reads highest at a median of HK$237.16 per share, and 5 of the 17 models we run sit above the HK$110.10 price. Bear case: the Economic Profit group reads lowest at HK$15.24, and 12 of the 17 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Alibaba Group Holding Ltd generated revenue of HK$1.0T at a net margin of 10.1%. Revenue grew 2.9% year over year. It earns a return on equity of 9.2%. Net debt stands at HK$86.1B. Fundamentals as of Sep 5, 2026

Our scenario range runs from HK$97.00 (bear case) to HK$167.08 (bull case); at HK$110.10, the current price sits within 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 last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 41% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −55% fair-value upside, at 20%, 9988 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly HK$1.00 per share, which is 0.8 % 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
EPV HK$12.49 HK$15.24 HK$17.68 74
Residual Income HK$48.99 HK$54.65 HK$96.03 74
ROIC Compounder HK$12.49 HK$15.24 HK$17.68 72
All 17 models by family
DCF Models
Owner Earnings HK$17.56 HK$45.27 HK$106.04 69
Earnings-Based
Graham-Dodd HK$36.74 HK$256.20 HK$359.53 63
Lynch FV HK$123.36 HK$176.23 HK$229.10 61
PEG = 1.0 HK$123.36 HK$176.23 HK$229.10 57
EPV HK$12.49 HK$15.24 HK$17.68 74
Dividend Discount
Gordon GGM HK$16.92 HK$36.94 HK$62.16 65
DDM Multi-Stage HK$16.92 HK$30.26 HK$38.50 66
Multiples
P/E Multiple HK$89.14 HK$118.85 HK$148.57 63
P/S Multiple HK$48.05 HK$64.06 HK$80.08 58
P/B Multiple HK$68.88 HK$91.84 HK$114.80 55
EV/EBIT HK$38.94 HK$52.94 HK$66.95 66
EV/EBITDA HK$47.05 HK$63.76 HK$80.47 67
EV/Revenue HK$25.25 HK$37.39 HK$49.52 53
Asset-Based
NCAV (Graham) HK$27.57 HK$36.94 HK$55.14 54
Economic Profit
Residual Income HK$48.99 HK$54.65 HK$96.03 74
ROIC Compounder HK$12.49 HK$15.24 HK$17.68 72
Growth Earnings
Growth-Adj P/E HK$166.01 HK$237.16 HK$308.31 67

Widest divergence: Growth Earnings (HK$237.16) versus Economic Profit (HK$15.24). Highest evidence: EPV (74).

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Key figures & financial health

P/E ratio 17.1 as of Jul 15, 2026
P/S ratio 1.73 P/E × margin
EPS (TTM) HK$3.36 price ÷ EPS = P/E 17.1
Dividend yield 0.9% payout 30.6%
Net margin 10.1% FY2026
Return on equity 9.2% TTM
More key figures
Profitability
Return on assets (EBIT) 5.4% avg 5y
Operating margin 1.0% TTM
Growth
Revenue (TTM) HK$1.0T TTM
Revenue growth (YoY) +2.9% 3y avg +5.6%
EPS growth (YoY) +104%
Balance sheet & cash flow
Free cash flow −HK$50.7B FY2026
Net debt HK$86.1B FY2026

Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 52 · Market factors (momentum, volatility) 38

Profitability 41
Margins and returns on capital today
Quality Growth 35
Are margins and returns improving?
Cashflow 13
Earnings quality: real cash, not paper profit
Fin. Strength 67
Balance sheet, leverage, solvency risk
Investment 76
Disciplined investing over empire-building
Low Volatility 63
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 23
Distance to the 52-week high (market factor)
Net Issuance 100
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

Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses in the People's Republic of China and internationally.

Full company description

Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses in the People's Republic of China and internationally. It operates through the Alibaba China E-Commerce Group, Alibaba International Digital Commerce Group, Cloud Intelligence Group, and All Others segments. The Alibaba China E-commerce Group segment operates Taobao and Tmall, which are digital retail platforms; Taobao Instant Commerce, a local services and on-demand delivery platform; 1688.com, a domestic wholesale marketplace; and Xianyu, a consumer-to-consumer community and marketplace for idle goods. Its Alibaba International Digital Commerce Group segment includes AliExpress, a global e-commerce platform; Trendyol, an e-commerce platform in Turkey; Lazada, an e-commerce platform in Southeast Asia; Daraz, an e-commerce platform in South Asia, primarily in Pakistan and Bangladesh; and Alibaba.com, an integrated international online wholesale marketplace. The Cloud Intelligence Group segment offers a suite of cloud services based on infrastructure-as-a-service, platform-as-a-service, and model-as-a-service. Its All Others segment comprises Amap, a provider of mobile digital maps, navigation, and real-time traffic information in China; Cainiao, which provides logistics solutions; Youku, an online long-form video platform in China; Freshippo, a retail platform for groceries and fresh goods; and Alibaba Health, a pharmaceutical and healthcare services platform. Alibaba Group Holding Limited was incorporated in 1999 and is based in Hangzhou, China.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Alibaba Group Holding Ltd reported revenue of 1.0T CNY in FY2026 versus 853B CNY in FY2022, a compound +4.7%/yr. Reported net income was 104B CNY in FY2026, compounding +13.6%/yr from FY2022.

Growth Quality 48/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
HK$1.0T
Latest YoY
+2.7%
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.
+5.6%
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.
+7.4%
Avg. revenue growth/yr (19Y) 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.
+41.7%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+45.4% (44.5 + 0.9)
Revenue +4.7%/yr
FY22 853B CNY
FY23 869B CNY
FY24 941B CNY
FY25 996B CNY
FY26 1.0T CNY
Net income +13.6%/yr
FY22 62.2B CNY
FY23 72.8B CNY
FY24 80.0B CNY
FY25 130B CNY
FY26 104B CNY
Character of growth · EPS growth decomposed (2015-2026) +14.1 % p.a.
Revenue per share +32.8 %

of which total revenue +27.4 % · buybacks/dilution +4.2 %

EBIT margin −10.9 %
Tax rate −0.7 %
Residual (interest, one-offs) −2.9 %

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).

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Cite: Fair Value Calculator (2026). "Alibaba Group Holding Ltd Fair Value". https://www.fairvalue-calculator.com/stock/9988

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Internet Retail · 103 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 54 · Above median
Fair Value upside +20% · Above median
Return on equity (TTM) 9% · Above median
Return on assets 2% · Above median
Net margin (TTM) 10% · Top 25%
Operating margin (TTM) 1% · Below median
Revenue growth 3% · Below median
Dividend yield (TTM) 0.9% · Below median
Debt / equity 0.22× · Higher than median

Valuation Multiples vs Internet Retail median · lower = cheaper

P/E (TTM) 17.1× · Cheaper than median
P/B 1.96× · Pricier than median
P/S (TTM) 2.03× · Pricier than 75% of peers
EV/EBITDA 19.4× · Pricier than median
PEG 0.47× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE60 · sector 23
FUTURE15 · sector 52
PAST37 · sector 12
HEALTH89 · sector 94
DIVIDEND19 · sector 38

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

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10 more Internet Retail stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).

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JD.com, Inc 89618 ¥95.45 ¥73.98 −22%
eBay Inc EBAY $105.62 $60.13 −43%
Coupang, Inc CPNG $16.32 $2.79 −83%
Delivery Hero SE DHER €37.05 €12.71 −66%
Wayfair Inc W $99.27 $11.46 −88%

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Frequently asked questions

Is Alibaba Group Holding Ltd (9988) overvalued or undervalued?
As of Sep 5, 2026, our model estimates a fair value of HK$132.03 versus a price of HK$110.10, about +20% upside (undervalued).
What is the fair value of 9988?
Our model-based fair value for Alibaba Group Holding Ltd is HK$132.03 (as of Sep 5, 2026), built from audited fundamentals. The current price: HK$110.10.
What is the quality score of 9988?
Alibaba Group Holding Ltd has a Quality Score of 54/100. 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 Alibaba Group Holding Ltd (9988)?
Alibaba Group Holding Ltd reported trailing-twelve-month revenue of about HK$1.0T (latest available figure, as of Sep 5, 2026).
What is the net profit margin of 9988?
The net profit margin of Alibaba Group Holding Ltd is about 10.1%, meaning it keeps roughly 10.1% of revenue as net income. Based on the latest reported figures.
Does Alibaba Group Holding Ltd pay a dividend?
Alibaba Group Holding Ltd currently shows a dividend yield of about 0.93% relative to its recent price (as of Sep 5, 2026).
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