Is Alibaba Group Holding or Starbucks more undervalued?

As of Oct 29, 2026, Alibaba Group Holding is at +19.4% to fair value and Starbucks at −45.3%. Alibaba Group Holding is the more undervalued of the two. Model-based estimate, not financial advice.

Which has higher quality, Alibaba Group Holding or Starbucks?

Alibaba Group Holding has a quality score of 48/100 and Starbucks 57/100. Starbucks leads on quality.

STOCK COMPARISON

Alibaba Group Holding vs Starbucks: Fair Value & Quality

Both stocks run through our valuation models. Here is how Alibaba Group Holding (BABA) and Starbucks (SBUX) compare, as of Oct 29, 2026.

As of Oct 29, 2026, Fair Value Calculator sees Alibaba Group Holding as the more attractively valued of the two: Alibaba Group Holding trades at $101 versus a fair value of $121 (+19.4%), while Starbucks trades at $103 versus $56.43 (−45.3%).

Alibaba Group Holding

BABA · USD · Consumer Discretionary

+19.4%

upside to fair value

undervalued

Price$101

Fair Value$121

Quality48/100

Fair ValueQualityUptrend

Starbucks

SBUX · USD · Consumer Discretionary

−45.3%

upside to fair value

overvalued

Price$103

Fair Value$56.43

Quality57/100

Fair ValueQualityUptrend

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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

Alibaba Group HoldingStarbucks

Valuation

24.4×P/E (TTM)59.7×

24.4×P/E ex one-offs (FY2025)48.5×

1.6×Forward P/E (FY2028)n/a

26.3×Median P/E at FY-end (10 FY, ex one-offs where documented)29.0×

n/aP/S (TTM)3.08×

n/aP/BNegative equity

n/aEV/EBITDA22.9×

0.51×PEG1.11×

+19.4%Fair value upside−45.3%

1.0%Dividend yield2.4%

$7.24Dividend per share$2.48

Profitability

7.3%Operating margin12.9%

0.79×EBIT margin trend (5Y)1.45×

6.4%Return on equityNegative equity

5.5%Return on assets5.8%

Growth

8.6%Revenue growth (YoY)-1.4%

5.6%Avg. growth/yr (3Y)4.9%

7.4%Avg. growth/yr (5Y)9.6%

−3.7%Value creation/yr−0.6%

Balance & size

6.1×Interest coverage (EBIT/interest)6.6×

0.22×Debt / equityNegative equity

$252BMarket cap$118B

expensiveGrowth qualitymixed

The P/E excluding one-off items is scored. For Alibaba Group Holding no documented adjusted P/E is available, so its reported P/E is shown there. The trailing P/E is shown for reference.

Alibaba Group Holding, median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings: 26.3. Starbucks, median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 5 of the years ex one-offs: 29.

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.

Starbucks leads: 4 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 Starbucks

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 $101	StarbucksPrice $103
DCF Models	−75.9%below the price$24.35	−61.8%below the price$39.40
Earnings-Based	+102.1%above the price$204	−80.9%below the price$19.70
Dividend Discount	−54.7%below the price$45.70	−59.6%below the price$41.65
Multiples	−27.5%below the price$73.19	−65.3%below the price$35.83
Asset-Based	−68.2%below the price$32.11	n/a
Growth DCF	n/a	−59.7%below the price$41.56
Economic Profit	−47.5%below the price$52.96	−85.4%below the price$15.07
Growth Earnings	+172.0%above the price$275	−69.0%below the price$31.98
Matching families	6 of 8
Minimum	−75.9%below the price$24.35	−85.4%below the price$15.07
Maximum	+172.0%above the price$275	−59.6%below the price$41.65
Median	−37.5%below the price$63.07	−67.1%below the price$33.91
Geometric mean	−21.8%below the price$78.93	−72.2%below the price$28.69
Ahead family by family	5 of 6	1 of 6

Minimum, maximum, median and geometric mean only use the families both stocks have (matching families: 6 of 8), so a family without a value on one side does not distort the comparison. Ahead in a family is the stock whose fair value there sits higher relative to its price. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Family by family: Alibaba Group Holding is ahead in 5 of 6 shared families, Starbucks in 1.

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

Starbucks: 23 of 23 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 $101

Fair Value $121

Bear $100Bull $171

Starbucks

Price $103

Fair Value $56.43

Bear $32.87Bull $70.53

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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+19.4% · above median

Starbucks · Consumer Discretionary

Quality score57 · above median

Fair value upside−45.3% · bottom 25%

Bottom line

Starbucks has the higher quality score (57/100).

Open Alibaba Group Holding live analysis →

Alibaba Group Holding · Starbucks

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