Is Alibaba Group Holding or Home Depot more undervalued?

As of Oct 24, 2026, Alibaba Group Holding is at +20.9% to fair value and Home Depot at −26.0%. Alibaba Group Holding is the more undervalued of the two. Model-based estimate, not financial advice.

Which has higher quality, Alibaba Group Holding or Home Depot?

Alibaba Group Holding has a quality score of 48/100 and Home Depot 54/100. Home Depot leads on quality.

STOCK COMPARISON

Alibaba Group Holding vs Home Depot: Fair Value & Quality

Both stocks run through our valuation models. Here is how Alibaba Group Holding (BABA) and Home Depot (HD) compare, as of Oct 24, 2026.

As of Oct 24, 2026, Fair Value Calculator sees Alibaba Group Holding as the more attractively valued of the two: Alibaba Group Holding trades at $99.64 versus a fair value of $120 (+20.9%), while Home Depot trades at $320 versus $237 (−26.0%).

Alibaba Group Holding

BABA · USD · Consumer Discretionary

+20.9%

upside to fair value

undervalued

Price$99.64

Fair Value$120

Quality48/100

Home Depot

HD · USD · Consumer Discretionary

−26.0%

upside to fair value

overvalued

Price$320

Fair Value$237

Quality54/100

Get comparisons like this free by email every month: the most undervalued quality stocks.

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

Alibaba Group HoldingHome Depot

Valuation

24.7×P/E (TTM)22.8×

1.6×Forward P/E (FY2028)20.0×

26.3×Median P/E at FY-end (10 FY, ex one-offs where documented)23.0×

n/aP/S (TTM)1.93×

n/aP/B25.50× · book value is mostly goodwill

n/aEV/EBITDA15.1×

0.51×PEG2.50×

+20.9%Fair value upside−26.0%

1.0%Dividend yield1.4%

$7.24Dividend per share$4.63

Profitability

7.3%Operating margin12.9%

0.79×EBIT margin trend (5Y)0.92×

6.4%Return on equity104.3%

5.5%Return on assets13.5%

Growth

8.6%Revenue growth (YoY)5.7%

5.6%Avg. growth/yr (3Y)1.5%

7.4%Avg. growth/yr (5Y)4.5%

−3.7%Value creation/yr+4.9%

Balance & size

6.1×Interest coverage (EBIT/interest)8.7×

0.22×Debt / equity3.62×

$254BMarket cap$327B

expensiveGrowth qualityhealthy

Alibaba Group Holding, median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings: 26.3. Home Depot, median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, FY2019 ex one-offs: 23.

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.

Home Depot leads: 5 to 8 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.

Alibaba Group Holding Home Depot

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	Alibaba Group HoldingPrice $99.64	Home DepotPrice $320
DCF Models	−75.6%below the price$24.32	−22.7%below the price$247
Earnings-Based	+104.5%above the price$204	−60.4%below the price$127
Dividend Discount	−54.2%below the price$45.64	−47.5%below the price$168
Multiples	−26.7%below the price$73.09	−26.0%below the price$237
Asset-Based	−67.8%below the price$32.07	n/a
Growth DCF	n/a	−34.3%below the price$210
Economic Profit	−46.9%below the price$52.89	−63.9%below the price$115
Growth Earnings	+175.3%above the price$274	−10.8%close to the price$285
Minimum	−75.6%below the price$24.32	−63.9%below the price$115
Maximum	+175.3%above the price$274	−10.8%close to the price$285
Median	−46.9%below the price$52.89	−34.3%below the price$210
Geometric mean	−30.4%below the price$69.32	−40.9%below the price$189

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%.

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

Home Depot: 23 of 24 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.

Alibaba Group Holding

Price $99.64

Fair Value $120

Bear $100Bull $171

Home Depot

Price $320

Fair Value $237

Bear $140Bull $312

Compare two other stocks

Tap a field and type again, ticker or company name.

First stock

Second stock

Free, no sign-up

Ranked within their sector

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

Alibaba Group Holding · Consumer Discretionary

Quality score48 · below median

Fair value upside+20.9% · above median

Home Depot · Consumer Discretionary

Quality score54 · above median

Fair value upside−26.0% · below median

Bottom line

Home Depot has the higher quality score (54/100).

Open Alibaba Group Holding live analysis →

Alibaba Group Holding · Home Depot

More comparisons

Popular match-ups from the same sectors, all with fair value and quality score.

Free · Top-25 report

See the undervalued quality stocks every month

Just your email for the monthly Top-25 report of the most undervalued quality stocks, with fair value, quality and price target.

Free. You confirm by email (double opt-in) and can unsubscribe anytime in one click. Not financial advice.

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