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STOCK COMPARISON

Alibaba Group Holding vs McDonald’s: Fair Value & Quality

Both stocks run through our valuation models. Here is how Alibaba Group Holding (BABA) and McDonald’s (MCD) compare, as of Sep 9, 2026.

As of Sep 9, 2026, Fair Value Calculator sees Alibaba Group Holding as the more attractively valued of the two: Alibaba Group Holding trades at $113 versus a fair value of $137 (+21%), while McDonald’s trades at $256 versus $149 (-42%).
Alibaba Group Holding
BABA · USD · Consumer Discretionary
+21%
upside to fair value
undervalued
Price$113
Fair Value$137
Quality48/100
McDonald’s
MCD · USD · Consumer Discretionary
-42%
upside to fair value
overvalued
Price$256
Fair Value$149
Quality69/100
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Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

Alibaba Group HoldingMcDonald’s
Valuation
18.2×P/E (TTM)21.2×
P/S (TTM)7.11×
EV/EBITDA15.8×
0.49×PEG2.56×
+21.3%Fair value upside−41.7%
0.9%Dividend yield2.8%
$7.24Dividend per share$7.26
Profitability
1%Operating margin44%
0.79×EBIT margin trend (5Y)1.21×
9%Return on equity
2%Return on assets14%
Growth
3%Revenue growth (YoY)9%
5.6%Avg. growth/yr (3Y)5.1%
7.4%Avg. growth/yr (5Y)7.0%
−3.8%Value creation/yr+11.5%
Balance & size
6.1×Interest coverage (EBIT/interest)7.8×
0.22×Debt / equity
$276BMarket cap$195B
expensiveGrowth qualityhealthy

McDonald’s leads: 5 to 7 metric wins.

Dash = 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 Holdingof which business quality 47 · market factors 39 McDonald’sof which business quality 65 · market factors 41
ProfitabilityMargins and returns on capital today
41
64
Quality GrowthAre margins and returns improving?
30
46
CashflowEarnings quality: real cash, not paper profit
13
76
Fin. StrengthBalance sheet, leverage, solvency risk
52
53
InvestmentDisciplined investing over empire-building
76
57
Low VolatilityCalm price path (market factor)
69
96
MomentumPrice trend over the last 3–12 months (market factor)
31
24
52W MomentumDistance to the 52-week high (market factor)
18
7
Net IssuanceBuybacks instead of dilution
92
91

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 familyAlibaba Group HoldingPrice $113McDonald’sPrice $256
DCF Models+220%above the price$362-54%below the price$117
Earnings-Based+1145%above the price$1,410-60%below the price$102
Dividend Discount+137%above the price$269-62%below the price$98.39
Multiples+352%above the price$511-12%close to the price$225
Asset-Based+161%above the price$295n/a
Growth DCFn/a-77%below the price$58.72
Economic Profit+199%above the price$338-56%below the price$113
Growth Earnings+1575%above the price$1,897-18%below the price$209
Minimum+137%above the price$269-77%below the price$58.72
Maximum+1575%above the price$1,897-12%close to the price$225
Median+220%above the price$362-56%below the price$113
Geometric mean+376%above the price$539-53%below the price$121

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: 0 of 17 models see the stock below the current price.

McDonald’s: 19 of 21 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Alibaba Group Holding
Bear $108Fair Value $137Bull $259
$113 = current price (white tick)
McDonald’s
Bear $98.03Fair Value $149Bull $233
$256 = current price (white tick)

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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.

Alibaba Group Holding · Consumer Discretionary

Quality score48 · below median
Fair value upside+21% · above median

McDonald’s · Consumer Discretionary

Quality score69 · Top 25%
Fair value upside-42% · below median

Bottom line

As of Sep 9, 2026, Fair Value Calculator sees Alibaba Group Holding as the more attractively valued of the two: Alibaba Group Holding trades at $113 versus a fair value of $137 (+21%), while McDonald’s trades at $256 versus $149 (-42%).

McDonald’s has the higher quality score (69/100).

See the full analysis →

More comparisons

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