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Alibaba Group (9988) Fair Value & Analysis

Consumer Cyclical · HK · Market cap HK$2.1T

AG Alibaba Group 9988 · HK
PriceHK$124.40
Fair ValueHK$133.31
Upside+7.2%
Quality49/100
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Expensive Growth
Solidly profitable · 10.1% net margin
Low debt · negative free cash flow
6.54% dividend yield
Mixed vs. peers (7/14)
Narrow moat 40/100
Evidence: High Range HK$99.99 – HK$166.64 Share as image

Fair value as of: Jul 15, 2026

From 17 valuation models · updated 23 days ago

Fair value updated Jul 15, 2026, revised from HK$64.00 to HK$133.31 (+108.3%) since Jul 12, 2026. Share price +29.9% over the past month.

Below-average quality, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from HK$99.99 (bear) to HK$166.64 (bull), base HK$133.31. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 49/100 (below-average quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

HK$227.54 HK$58.80 Fair Value HK$133.31 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range HK$58.80 – HK$227.54 · fair‑value band HK$99.99 – HK$166.64 · the HK$124.40 price screens below the HK$133.31 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 15, 2026.

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Analysis

Alibaba Group (9988) currently trades at HK$124.40, while our model-based Fair Value estimate is HK$133.31, implying the stock looks roughly 7.2% fairly valued today. We read business quality at 49/100 (below-average quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Alibaba Group 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 Jul 15, 2026

Our scenario range runs from HK$99.99 (bear case) to HK$166.64 (bull case); at HK$124.40, 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 33% below its 52-week high and 22% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -50% fair-value upside, at 7%, 9988 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Residual Income HK$48.99 HK$54.65 HK$96.03 76
ROIC Compounder HK$12.49 HK$15.24 HK$17.68 72
Gordon GGM HK$16.92 HK$36.94 HK$62.16 70
All 17 models by family
DCF Models
Owner Earnings HK$17.56 HK$45.27 HK$106.04 31
Earnings-Based
Graham-Dodd HK$36.74 HK$256.20 HK$359.53 54
Lynch FV HK$123.36 HK$176.23 HK$229.10 50
PEG = 1.0 HK$123.36 HK$176.23 HK$229.10 46
EPV HK$12.49 HK$15.24 HK$17.68 59
Dividend Discount
Gordon GGM HK$16.92 HK$36.94 HK$62.16 70
DDM Multi-Stage HK$16.92 HK$30.26 HK$38.50 61
Multiples
P/E Multiple HK$81.04 HK$108.05 HK$135.06 63
P/S Multiple HK$68.88 HK$91.84 HK$114.80 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 53
EV/EBITDA HK$51.23 HK$69.33 HK$87.43 54
EV/Revenue HK$25.25 HK$37.39 HK$49.52 43
Asset-Based
NCAV (Graham) HK$27.57 HK$36.94 HK$55.14 50
Economic Profit
Residual Income HK$48.99 HK$54.65 HK$96.03 76
ROIC Compounder HK$12.49 HK$15.24 HK$17.68 72
Growth Earnings
Growth-Adj P/E HK$161.02 HK$230.02 HK$299.03 68

Widest divergence: Growth Earnings (HK$230.02) versus Economic Profit (HK$15.24). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) HK$1.0T
Revenue growth (YoY) +2.9%
Net margin 10.1%
Return on equity 9.2%
Free cash flow −HK$50.7B FY2026
P/E ratio 17.1
More key figures
Operating margin 1.0%
EPS (TTM) HK$3.36
Dividend yield 6.5%
EPS growth (YoY) +104%
Net debt HK$86.1B FY2026

Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 52 · Market factors (momentum, volatility) 37

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 19
Price trend over the last 3–12 months (market factor)
52W Momentum 38
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.

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 reported revenue of HK$1.0T in FY2026 versus HK$853B in FY2022, a compound +4.7%/yr. Reported net income was HK$104B 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. growth/yr (3Y)
+5.6%
Avg. growth/yr (5Y)
+7.4%
Avg. growth/yr (19Y)
+41.7%
Revenue +4.7%/yr
FY22 HK$853B
FY23 HK$869B
FY24 HK$941B
FY25 HK$996B
FY26 HK$1.0T
Net income +13.6%/yr
FY22 HK$62.2B
FY23 HK$72.8B
FY24 HK$80.0B
FY25 HK$130B
FY26 HK$104B

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Cite: Fair Value Calculator (2026). "Alibaba Group 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 · 108 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 49 · Below median
Fair Value upside +7% · 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) 6.5% · Top 25%
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

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.

VALUE 43 · sector 34
FUTURE 15 · sector 41
PAST 37 · sector 8
HEALTH 89 · sector 93
DIVIDEND 100 · sector 39

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Internet Retail stocks, each showing price versus our Fair Value estimate (as of Jul 15, 2026).

Stock Price Fair Value vs Fair Value
Amazon.com, Inc AMZN $245.34 $127.67 -48%
PDD Holdings PDD $84.14 $223.51 +166%
MercadoLibre, Inc MELI $1,814 $798.98 -56%
DoorDash, Inc DASH $190.16 $38.64 -80%
Sea Limited SE $106.22 $52.70 -50%
eBay Inc EBAY $117.20 $60.13 -49%
JD.com, Inc JD €25.95 €31.88 +23%
Coupang, Inc CPNG $16.86 $2.79 -83%
Delivery Hero SE DHER €38.18 €12.71 -67%
Wayfair Inc W $89.31 $11.46 -87%

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Frequently asked questions

Is Alibaba Group (9988) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of HK$133.31 versus a price of HK$124.40, about +7% (fairly valued).
What is the fair value of 9988?
Our model-based fair value for Alibaba Group is HK$133.31 (as of Jul 15, 2026), built from audited fundamentals. The current price is HK$124.40.
What is the quality score of 9988?
Alibaba Group has a Quality Score of 49/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Alibaba Group (9988)?
Alibaba Group reported trailing-twelve-month revenue of about HK$1.0T (latest available figure, as of Jul 15, 2026).
What is the net profit margin of 9988?
The net profit margin of Alibaba Group is about 10.1%, meaning it keeps roughly 10.1% of revenue as net income. Based on the latest reported figures.
Does Alibaba Group pay a dividend?
Alibaba Group currently shows a dividend yield of about 5.86% relative to its recent price (as of Jul 15, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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