NYSE · Consumer Cyclical

Alibaba Group Holding Limited

BABA · Internet Retail

$107.10

▼ -0.34 (-0.32%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

C⤢

Gross Profit Margin 39.8%

Operating Margin 5.8%

Net Income Margin 10.1%

Fin. Health

C⤢

Years to Pay Off Debt 2.7 yrs

Working Capital vs Long-Term Debt -$97.4B

Working Capital $134.4B

Valuation

A⤢

Margin of Safety 83.8%

Price-to-Book 0.24x

Cash Flow

F⤢

Free Cash Flow -$50.7B

CapEx % of Net Income 122.5%

Owner Earnings $277.6B

Profitability

Gross Profit Margin 39.8%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 5.8%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 10.1%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 2.7 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$97.4B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $134.4B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow -$50.7B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 122.5%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $277.6B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Alibaba Group Holding Limited

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.

Market Data

Market Cap $256.9B

Enterprise Value $289.3B

P/E (TTM) 16.50

Dividend Yield 6.74%

Exchange NYSE

Key Margins

Gross Profit 39.8%

Operating Margin 5.8%

Net Margin 10.1%

Company Info

Sector Consumer Cyclical

Industry Internet Retail

Employees 131462

Country China

Visit website

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Full Graham Analysis

Mr. Market is currently offering Alibaba Group Holding Limited at $107.10.

The business passes 5 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $107.10, the stock trades below its Graham Number of $661.64 — suggesting a margin of safety exists.

The margin of safety of 83.8% exceeds Graham's recommended 33% threshold — a rare opportunity.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

Showing Key Metrics

Income Highlights

Metric	2026	2025	2024	2023
Gross Profit %	39.8%▼	40.0%▲	37.7%▲	36.7%
Operating Margin %	5.8%▼	14.8%▲	13.2%▲	11.9%
Net Income %	10.1%▼	13.1%▲	8.5%▲	8.4%
Diluted EPS	44.00▼	53.60▲	31.28▲	27.44

Balance Sheet Highlights

Metric	2026	2025	2024	2023	2022
Total Assets	$1,909.6B	$1,804.2B	$1,764.8B	$1,753.0B	N/A
Total Debt	$281.7B▲	$248.1B▲	$205.6B▲	$195.6B•	N/A
Working Capital	$134.4B▼	$238.7B▼	$331.4B▲	$312.6B•	N/A
Years to Pay Debt	2.72	1.91	2.57	2.69	N/A

Cash Flow Highlights

Metric	2026	2025	2024	2023	2022
Free Cash Flow	-$50.7B▼	$77.5B▼	$149.7B▼	$165.4B•	N/A
Owner Earnings	$277.6B	$258.5B	$157.4B	$154.1B	N/A
CapEx % of Net Income	122.5%	66.1%	41.2%	47.2%	N/A

Income Statement

	2026	2025	2024	2023
Tax Effect Of Unusual Items	-2,209,481	-1,407,038	-2,333,041	-473,174
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	195,813,000	213,681,000	174,532,000	155,826,000
Total Unusual Items	-9,515,000	-6,171,000	-10,521,000	-2,714,000
Total Unusual Items Excluding Goodwill	-9,515,000	-6,171,000	-10,521,000	-2,714,000
Net Income From Continuing Operation Net Minority Interest	103,592,000	130,109,000	80,009,000	72,783,000
Reconciled Depreciation	47,118,000	42,459,000	44,504,000	46,938,000
Reconciled Cost Of Revenue	574,097,000	562,162,000	563,411,000	516,261,000
EBITDA	186,298,000	207,510,000	164,011,000	153,112,000
EBIT	139,180,000	165,051,000	119,507,000	106,174,000
Net Interest Income	77,719,000	11,163,000	-17,911,000	-16,989,000
Interest Expense	9,793,000	9,596,000	17,911,000	16,989,000
Interest Income	87,512,000	20,759,000
Normalized Income	110,897,519	134,872,962	88,196,959	75,023,826
Net Income From Continuing And Discontinued Operation	103,592,000	130,109,000	80,009,000	72,783,000
Total Expenses	964,005,000	849,271,000	817,297,000	765,622,000
Total Operating Income As Reported	50,150,000	140,905,000	113,350,000	100,351,000
Diluted Average Shares	2,404,375	2,414,750	2,544,875	2,639,250
Basic Average Shares	2,321,000	2,348,875	2,522,750	2,622,500
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	105,803,000	129,405,000	79,513,000	72,471,000
Average Dilution Earnings	-101,000	-65,000	-228,000	-38,000
Net Income Common Stockholders	105,904,000	129,470,000	79,741,000	72,509,000
Otherunder Preferred Stock Dividend	-2,312,000	639,000	268,000	274,000
Net Income	103,592,000	130,109,000	80,009,000	72,783,000
Minority Interests	1,465,000	4,133,000	8,677,000	7,210,000
Net Income Including Noncontrolling Interests	102,127,000	125,976,000	71,332,000	65,573,000
Net Income Continuous Operations	102,127,000	125,976,000	71,332,000	65,573,000
Earnings From Equity Interest Net Of Tax	2,785,000	5,966,000	-7,735,000	-8,063,000
Tax Provision	30,045,000	35,445,000	22,529,000	15,549,000
Pretax Income	129,387,000	155,455,000	101,596,000	89,185,000
Other Income Expense	-7,997,000	-2,784,000	-4,364,000	3,109,000
Other Non Operating Income Expenses	1,518,000	3,387,000	6,157,000	5,823,000
Special Income Charges	-9,515,000	-6,171,000	-10,521,000	-2,714,000
Impairment Of Capital Assets	9,515,000	6,171,000	10,521,000	2,714,000
Net Non Operating Interest Income Expense	77,719,000	11,163,000	-17,911,000	-16,989,000
Interest Expense Non Operating	9,793,000	9,596,000	17,911,000	16,989,000
Interest Income Non Operating	87,512,000	20,759,000
Operating Income	59,665,000	147,076,000	123,871,000	103,065,000
Operating Expense	347,869,000	250,986,000	230,974,000	215,927,000
Other Operating Expenses	-1,848,000	-761,000
Depreciation Amortization Depletion Income Statement	5,079,000	6,336,000	21,592,000	13,504,000
Depreciation And Amortization In Income Statement	5,079,000	6,336,000	21,592,000	13,504,000
Amortization	5,079,000	6,336,000	21,592,000	13,504,000
Amortization Of Intangibles Income Statement	5,079,000	6,336,000	21,592,000	13,504,000
Research And Development	66,533,000	57,151,000	52,256,000	56,744,000
Selling General And Administration	278,105,000	188,260,000	157,126,000	145,679,000
Selling And Marketing Expense	245,023,000	144,021,000	115,141,000	103,496,000
General And Administrative Expense	33,082,000	44,239,000	41,985,000	42,183,000
Other Gand A	33,082,000	44,239,000	41,985,000	42,183,000
Gross Profit	407,534,000	398,062,000	354,845,000	318,992,000
Cost Of Revenue	616,136,000	598,285,000	586,323,000	549,695,000
Total Revenue	1,023,670,000	996,347,000	941,168,000	868,687,000
Operating Revenue	987,243,000	953,662,000	902,332,000	832,100,000

Balance Sheet

	2026	2025	2024	2023	2022
Treasury Shares Number		1,210
Ordinary Shares Number	18,580,374	18,997,077	19,469,127	20,526,018
Share Issued	18,580,374	18,998,288	19,469,127	20,526,018
Net Debt	128,466,000	85,216,000
Total Debt	281,722,000	248,110,000	205,614,000	195,569,000
Tangible Book Value	785,561,000	720,557,000	687,842,000	665,748,000
Invested Capital	1,320,882,000	1,240,561,000	1,157,320,000	1,151,011,000
Working Capital	134,371,000	238,703,000	331,357,000	312,615,000
Net Tangible Assets	785,561,000	720,557,000	687,842,000	665,748,000
Capital Lease Obligations	21,726,000	17,407,000	34,838,000	34,215,000
Common Stock Equity	1,060,886,000	1,009,858,000	986,544,000	989,657,000
Total Capitalization	1,292,658,000	1,217,999,000	1,128,319,000	1,138,745,000
Total Equity Gross Minority Interest	1,126,270,000	1,090,106,000	1,112,599,000	1,122,921,000
Minority Interest	65,384,000	80,248,000	126,055,000	133,264,000
Stockholders Equity	1,060,886,000	1,009,858,000	986,544,000	989,657,000
Other Equity Interest				-49,000	-46,000
Gains Losses Not Affecting Retained Earnings	3,558,000	19,329,000	18,331,000	2,560,000
Other Equity Adjustments	16,628,000	15,936,000	14,733,000	12,977,000
Foreign Currency Translation Adjustments	-13,404,000	3,286,000	3,635,000	-10,476,000
Unrealized Gain Loss	334,000	107,000	-37,000	59,000
Treasury Stock	36,141,000	36,329,000	27,684,000	28,763,000
Retained Earnings	708,382,000	645,478,000	597,897,000	599,028,000
Additional Paid In Capital	385,086,000	381,379,000	397,999,000	416,880,000
Capital Stock	1,000	1,000	1,000	1,000
Common Stock	1,000	1,000	1,000	1,000
Total Liabilities Net Minority Interest	783,300,000	714,121,000	652,230,000	630,123,000
Total Non Current Liabilities Net Minority Interest	306,902,000	278,775,000	230,723,000	244,772,000
Other Non Current Liabilities	5,839,000	2,811,000	1,427,000	773,000
Non Current Deferred Liabilities	51,883,000	54,360,000	58,554,000	66,363,000
Non Current Deferred Revenue	4,885,000	4,536,000	4,069,000	3,560,000
Non Current Deferred Taxes Liabilities	46,060,000	48,454,000	53,012,000	61,745,000
Long Term Debt And Capital Lease Obligation	249,180,000	221,604,000	170,742,000	177,636,000
Long Term Capital Lease Obligation	17,408,000	13,463,000	28,967,000	28,548,000
Long Term Debt	231,772,000	208,141,000	141,775,000	149,088,000
Current Liabilities	476,398,000	435,346,000	421,507,000	385,351,000
Other Current Liabilities	24,940,000	28,690,000	18,456,000	17,512,000
Current Deferred Liabilities	141,307,000	130,992,000	141,157,000	140,457,000
Current Deferred Revenue	77,651,000	68,609,000	85,555,000	84,592,000
Current Debt And Capital Lease Obligation	32,542,000	26,506,000	34,872,000	17,933,000
Current Capital Lease Obligation	4,318,000	3,944,000	5,871,000	5,667,000
Current Debt	28,224,000	22,562,000	29,001,000	12,266,000
Other Current Borrowings	28,224,000	22,562,000	29,001,000	12,266,000
Payables And Accrued Expenses	277,609,000	249,158,000	227,022,000	209,449,000
Current Accrued Expenses	32,457,000	31,705,000	29,631,000	29,000,000
Payables	245,152,000	217,453,000	197,391,000	180,449,000
Other Payable	220,024,000	190,044,000	170,886,000	150,526,000
Dueto Related Parties Current	7,563,000	8,130,000	9,503,000	10,383,000
Total Tax Payable	17,565,000	19,279,000	17,002,000	19,540,000
Income Tax Payable	10,630,000	11,638,000	9,068,000	12,543,000
Accounts Payable				103,369,000	107,205,000
Total Assets	1,909,570,000	1,804,227,000	1,764,829,000	1,753,044,000
Total Non Current Assets	1,298,801,000	1,130,178,000	1,011,965,000	1,055,078,000
Other Non Current Assets	20,764,000	11,380,000	4,396,000	5,123,000
Non Current Deferred Assets	13,957,000	13,161,000	11,361,000	15,494,000
Non Current Deferred Taxes Assets	13,957,000	13,161,000	11,361,000	15,494,000
Investments And Advances	656,745,000	566,987,000	424,073,000	453,117,000
Investmentin Financial Assets	449,942,000	356,818,000	220,942,000	245,737,000
Available For Sale Securities	449,942,000	356,818,000	220,942,000	245,737,000
Long Term Equity Investment	206,803,000	210,169,000	203,131,000	207,380,000
Goodwill And Other Intangible Assets	275,325,000	289,301,000	298,702,000	323,909,000
Other Intangible Assets	27,947,000	33,800,000	39,023,000	55,818,000
Goodwill	247,378,000	255,501,000	259,679,000	268,091,000
Net PPE	332,010,000	249,349,000	273,433,000	257,435,000
Accumulated Depreciation	-150,823,000	-128,417,000	-130,473,000	-114,568,000
Gross PPE	482,833,000	377,766,000	403,906,000	372,003,000
Construction In Progress	59,424,000	61,648,000	54,022,000	49,105,000
Other Properties	45,524,000	39,202,000	76,927,000	77,428,000
Machinery Furniture Equipment	256,489,000	172,316,000	137,825,000	122,194,000
Buildings And Improvements	121,396,000	104,600,000	135,132,000	123,276,000
Current Assets	610,769,000	674,049,000	752,864,000	697,966,000
Other Current Assets	20,114,000	28,292,000	13,400,000	8,317,000
Current Deferred Assets	5,479,000	5,365,000	6,482,000	4,771,000
Restricted Cash	42,038,000	43,781,000	38,299,000	36,424,000
Prepaid Assets	22,556,000	20,556,000	17,784,000	16,794,000
Inventory	18,909,000	18,887,000	25,460,000	28,547,000
Receivables	184,779,000	129,075,000	80,410,000	78,643,000
Other Receivables	90,671,000	52,976,000	11,508,000	14,499,000
Duefrom Related Parties Current	21,587,000	12,058,000	8,257,000	9,042,000
Taxes Receivable	32,303,000	26,336,000	19,904,000	17,497,000
Accrued Interest Receivable	4,198,000	6,533,000	10,055,000	5,471,000
Accounts Receivable	36,020,000	31,172,000	30,686,000	32,134,000
Cash Cash Equivalents And Short Term Investments	316,894,000	428,093,000	571,029,000	524,470,000
Other Short Term Investments	185,364,000	282,606,000	322,904,000	331,384,000
Cash And Cash Equivalents	131,530,000	145,487,000	248,125,000	193,086,000

Cash Flow

	2026	2025	2024	2023	2022
Free Cash Flow	-50,724,000	77,537,000	149,664,000	165,400,000
Repurchase Of Capital Stock	-7,638,000	-86,662,000	-88,745,000	-74,746,000
Repayment Of Debt	-78,458,000	-59,898,000	-18,105,000	-11,448,000
Issuance Of Debt	117,490,000	124,432,000	20,570,000	22,790,000
Issuance Of Capital Stock	1,042,000	10,000	843,000	11,000
Capital Expenditure	-126,937,000	-85,972,000	-32,929,000	-34,352,000
Interest Paid Supplemental Data	9,384,000	8,866,000	7,832,000	5,637,000
Income Tax Paid Supplemental Data		33,409,000	32,486,000	26,476,000	21,474,000
End Cash Position	173,568,000	189,268,000	286,424,000	229,510,000
Beginning Cash Position	189,268,000	286,424,000	229,510,000	227,353,000
Effect Of Exchange Rate Changes	-4,004,000	965,000	4,389,000	3,530,000
Changes In Cash	-11,696,000	-98,121,000	52,525,000	-1,373,000
Financing Cash Flow	-20,573,000	-76,215,000	-108,244,000	-65,619,000
Cash Flow From Continuing Financing Activities	-20,573,000	-76,215,000	-108,244,000	-65,619,000
Net Other Financing Charges	-19,277,000	-25,020,000	-4,861,000	-2,226,000
Cash Dividends Paid	-33,732,000	-29,077,000	-17,946,000	0
Net Common Stock Issuance	-6,596,000	-86,652,000	-87,902,000	-74,735,000
Common Stock Payments	-7,638,000	-86,662,000	-88,745,000	-74,746,000
Common Stock Issuance	1,042,000	10,000	843,000	11,000
Net Issuance Payments Of Debt	39,032,000	64,534,000	2,465,000	11,342,000
Net Long Term Debt Issuance	39,032,000	64,534,000	2,465,000	11,342,000
Long Term Debt Payments	-78,458,000	-59,898,000	-18,105,000	-11,448,000
Long Term Debt Issuance	117,490,000	124,432,000	20,570,000	22,790,000
Investing Cash Flow	-67,336,000	-185,415,000	-21,824,000	-135,506,000
Cash Flow From Continuing Investing Activities	-67,336,000	-185,415,000	-21,824,000	-135,506,000
Net Other Investing Changes	238,000	264,000	79,000	-360,000
Dividends Received Cfi			1,265,000	1,001,000	936,000
Net Investment Purchase And Sale	46,709,000	-95,109,000	14,418,000	-96,678,000
Sale Of Investment	123,149,000	41,609,000	94,050,000	23,020,000
Purchase Of Investment	-76,440,000	-136,718,000	-79,632,000	-119,698,000
Net Business Purchase And Sale	12,113,000	-7,026,000	-3,765,000	-4,760,000
Sale Of Business	17,048,000	1,873,000	1,964,000	1,001,000
Purchase Of Business	-4,935,000	-8,899,000	-5,729,000	-5,761,000
Net Intangibles Purchase And Sale	-874,000	0	-842,000	-22,000
Purchase Of Intangibles	-874,000	0	-842,000	-22,000
Net PPE Purchase And Sale	-125,522,000	-83,544,000	-31,714,000	-33,686,000
Sale Of PPE	541,000	2,428,000	373,000	644,000
Purchase Of PPE	-126,063,000	-85,972,000	-32,087,000	-34,330,000
Operating Cash Flow	76,213,000	163,509,000	182,593,000	199,752,000
Cash Flow From Continuing Operating Activities	76,213,000	163,509,000	182,593,000	199,752,000
Change In Working Capital	-22,547,000	-23,988,000	-13,749,000	13,482,000
Change In Other Working Capital	9,424,000	-1,239,000	1,510,000	2,932,000
Change In Payables And Accrued Expense	35,960,000	27,841,000	22,362,000	1,945,000
Change In Accrued Expense	37,933,000	25,873,000	27,126,000	11,159,000
Change In Payable	-1,973,000	1,968,000	-4,764,000	-9,214,000
Change In Tax Payable	-1,973,000	1,968,000	-4,764,000	-9,214,000
Change In Income Tax Payable	-1,973,000	1,968,000	-4,764,000	-9,214,000
Change In Prepaid Assets	-67,931,000	-50,590,000	-37,621,000	8,605,000
Other Non Cash Items	-992,000	590,000	-708,000	-1,011,000
Stock Based Compensation	11,180,000	13,970,000	18,546,000	30,831,000
Provisionand Write Offof Assets	1,368,000	3,016,000	3,509,000	2,802,000
Asset Impairment Charge	18,968,000	15,606,000	34,854,000	19,985,000
Deferred Tax	-2,528,000	374,000	-5,263,000	-1,717,000
Deferred Income Tax	-2,528,000	374,000	-5,263,000	-1,717,000
Depreciation Amortization Depletion	47,118,000	42,459,000	44,504,000	46,938,000
Depreciation And Amortization	47,118,000	42,459,000	44,504,000	46,938,000
Amortization Cash Flow	10,051,000	13,199,000	17,864,000	19,139,000
Amortization Of Intangibles	10,051,000	13,199,000	17,864,000	19,139,000
Depreciation	37,067,000	29,260,000	26,640,000	27,799,000
Operating Gains Losses	-78,481,000	-14,494,000	29,568,000	22,869,000
Earnings Losses From Equity Investments	-2,785,000	-5,966,000	7,735,000	8,063,000
Gain Loss On Investment Securities	-65,990,000	-29,280,000	23,480,000	14,911,000
Gain Loss On Sale Of PPE	-1,848,000	-784,000	-107,000	-163,000
Gain Loss On Sale Of Business	-7,858,000	21,536,000	-1,540,000	58,000
Net Income From Continuing Operations	102,127,000	125,976,000	71,332,000	65,573,000

5/7

Graham Score

Enterprising Investor

Requires deeper research. Suited for active investors.

Graham's Fair Value

$661.64

Margin of Safety

83.8%

Market Cap / Net Assets

0.2x

Net Assets: $1,126.3B

Warren's Owner Earnings

$277.6B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

5/7 — Enterprising Investor

✅

Adequate Size

Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.

$1,023.7B

vs > $1.5B revenue

❌

Strong Financial Condition

Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.

1.28x

vs Current Ratio > 2.0x

✅

Earnings Stability

Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.

No loss years (4 yrs data)

vs No negative EPS years

✅

Dividend Record

Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.

6.74%

vs Uninterrupted dividends

✅

Earnings Growth

EPS grew from $27.44 to $44.00 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.

+60.3% EPS growth

vs > 33% EPS growth

❌

Moderate P/E Ratio

Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.

16.5x

vs P/E ≤ 15.0x

✅

Moderate Price-to-Book

Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.

0.24x P/B (P/E×P/B: 4.0)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

These metrics estimate what Alibaba Group Holding Limited is worth based on fundamentals — independent of what the market prices it at. Graham's Fair Value and NCAV are conservative floors. EPV assumes zero growth. These are reference points, not price targets.

Net Current Asset Value

$-71.91

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$276.33

Per share, no-growth floor. Compare to current price.

ROIC — Return on Invested Capital

3.3%

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Cash Flow Analysis

Metric	2026	2025	2024	2023	2022
Capital Expenditure % of Net Income	122.5%	66.1%	41.2%	47.2%	N/A
Repurchase of Capital Stock	-$7.6B	-$86.7B	-$88.7B	-$74.7B	N/A
Free Cash Flow	-$50.7B ▼	$77.5B ▼	$149.7B ▼	$165.4B •	N/A •
Warren's Owner Earnings	$277.6B	$258.5B	$157.4B	$154.1B	N/A

Peers & Industry Comparison

Internet Retail — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
BABA	$107.10	$256.9B	16.50	39.8%	10.1%	$1,023.7B
AMZN Amazon.com, Inc.	$244.39	$2,628.9B	31.5	50.6%	12.2%	$742.8B
JD JD.com, Inc.	$27.57	$37.2B	20.1	9.3%	1.0%	$1,323.7B
EBAY eBay Inc.	$108.24	$48.1B	25.0	71.8%	17.6%	$11.6B
ETSY Etsy, Inc.	$73.95	$7.0B	28.3	71.6%	9.8%	$2.9B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

1.83%

Low — management has little skin in the game

Return on Equity (ROE)

9.8%

Adequate — returns are moderate

Return on Assets (ROA)

5.4%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$7.6B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+13.5% YoY

Debt is growing — management is leveraging up

Leadership Team

Yongming Wu

CEO, Head of Core E-Commerce Business & Director

Age 50

Michael Evans

President & Director

Age 67

Joseph Tsai

Executive Chairman

Age 61

Pay: $4,531,709

0.004% of net income

Hong Xu

Chief Financial Officer

Age 52

Zeming Wu

Chairman & Chief Executive Officer of Ele.me and Group Chief Technology Officer

Age 44

Top Institutional Holders

Institution	% Owned	Shares
JPMORGAN CHASE & CO	0.85%	20,491,140
Primecap Management Company	0.78%	18,722,316
UBS Group AG	0.44%	10,621,236
Dodge & Cox Inc.	0.41%	9,917,770
HSBC Holdings PLC	0.38%	9,144,918
FMR, LLC	0.33%	7,847,855
Morgan Stanley	0.26%	6,144,720
Goldman Sachs Group Inc	0.24%	5,705,942

Risk Analysis

Beta (Market Risk)

0.46

Low volatility — more stable than the market

Short Interest

1.7% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.25x

Conservative balance sheet — low financial risk

Current Ratio

1.28x

Adequate liquidity

52-Week Price Range

Low: $103.71 Current: $107.10 High: $192.67

Currently at 4% of 52-week range

Alibaba Group Holding Limited

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Graham's Fair Value

Market Cap / Net Assets

Warren's Owner Earnings

Graham's 7 Criteria

Graham's 7 Criteria — Explained

Net Current Asset Value

Earnings Power Value

ROIC — Return on Invested Capital

Cash Flow Analysis

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis