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Alibaba Group Holding Ltd Logo

Alibaba Group Holding Ltd
NYSE:BABA

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Alibaba Group Holding Ltd Logo
Alibaba Group Holding Ltd
NYSE:BABA
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Price: 84.48 USD -1.22% Market Closed
Market Cap: 201.4B USD
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Alibaba Group Holding Ltd
84.48
-1.04 (-1.22%)
52 Week Range
67.4745
117.52
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Popular Prompts Strategic Analysis Valuation Future Outlook Peer Analysis Profitability Solvency Financials
BABA
/
Balance Sheet
/
Other Liabilities

Alibaba Group Holding Ltd
Other Liabilities

Last Value
3-Years 3-Y CAGR
5-Years 5-Y CAGR
10-Years 10-Y CAGR
Quarterly
Annual
|

Alibaba Group Holding Ltd
Other Liabilities Peer Comparison

Competitors Analysis
Latest Figures & CAGR of Competitors

Company Other Liabilities CAGR 3Y CAGR 5Y CAGR 10Y
Alibaba Group Holding Ltd
NYSE:BABA
Other Liabilities
ÂĄ35.7B
CAGR 3-Years
1%
CAGR 5-Years
8%
CAGR 10-Years
31%
Vipshop Holdings Ltd
NYSE:VIPS
Other Liabilities
ÂĄ2.7B
CAGR 3-Years
6%
CAGR 5-Years
9%
CAGR 10-Years
N/A
Pinduoduo Inc
NASDAQ:PDD
Other Liabilities
ÂĄ3B
CAGR 3-Years
91%
CAGR 5-Years
63%
CAGR 10-Years
N/A
JD Health International Inc
HKEX:6618
Other Liabilities
N/A
CAGR 3-Years
N/A
CAGR 5-Years
N/A
CAGR 10-Years
N/A
Meituan
HKEX:3690
Other Liabilities
ÂĄ672.2m
CAGR 3-Years
62%
CAGR 5-Years
3%
CAGR 10-Years
N/A
JD.Com Inc
HKEX:9618
Other Liabilities
ÂĄ18.3B
CAGR 3-Years
6%
CAGR 5-Years
18%
CAGR 10-Years
N/A
No Stocks Found

Alibaba Group Holding Ltd
Glance View

Economic Moat
Wide
Market Cap
201.4B USD
Industry
Retail

Alibaba Group Holding Ltd. stands as a titan in the e-commerce realm, a juggernaut that has revolutionized how business is conducted in China and beyond. Founded in 1999 by Jack Ma and his partners in a small apartment in Hangzhou, the company blossomed from a modest online marketplace into a sprawling digital ecosystem. At its core, Alibaba operates some of the largest online platforms in the world, including Taobao and Tmall, catering to millions of individual consumers and businesses. Taobao, akin to eBay, provides an open-market platform for small businesses and entrepreneurs to reach consumers directly, while Tmall offers a space for international and Chinese brands to establish virtual storefronts. The sophistication and scale of Alibaba’s e-commerce operations have been supplemented by innovative business models like Singles' Day, the world’s largest online shopping event, which epitomizes their prowess in blending digital savvy with consumer psychology. Beyond e-commerce, Alibaba Group has systematically expanded into a multifaceted business empire, leveraging its colossal user base and technological prowess. Cloud computing, spearheaded by Alibaba Cloud, has burgeoned into one of the company’s most significant revenue streams, offering scalable IT services across Asia and increasingly, the globe. Moreover, the company delves into digital media, entertainment, and logistics, with entities like Youku Tudou providing streaming services and Cainiao facilitating high-speed delivery. Financial services also play a crucial role, primarily through Ant Group, which powers Alipay, one of the world's leading digital payment platforms. Alibaba thus crafts a symbiotic relationship among its various arms, capturing revenue through transaction fees, advertising, premium services, and technological solutions, all woven into the comprehensive tapestry of the Alibaba ecosystem.

View BABA Analysis
BABA Intrinsic Value
121.14 USD
Undervaluation 30%
Intrinsic Value
Price
What is Intrinsic Value?

See Also

What is Alibaba Group Holding Ltd's Other Liabilities?
Other Liabilities
35.7B CNY

Based on the financial report for Sep 30, 2024, Alibaba Group Holding Ltd's Other Liabilities amounts to 35.7B CNY.

What is Alibaba Group Holding Ltd's Other Liabilities growth rate?
Other Liabilities CAGR 10Y
31%

Over the last year, the Other Liabilities growth was 1%. The average annual Other Liabilities growth rates for Alibaba Group Holding Ltd have been 1% over the past three years , 8% over the past five years , and 31% over the past ten years .

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www.alphaspread.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on www.alphaspread.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. In no event shall Alpha Spread Limited be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on www.alphaspread.com, or relating to the use of, or inability to use, www.alphaspread.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance.

What is intrinsic value?

Stock intrinsic value is the real worth of a company's stock, based on its financial health and performance.

Instead of looking at the stock's current market price, which can change due to people's opinions and emotions, intrinsic value helps us understand if a stock is truly a good deal or not.

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What is Economic Moat

The most important thing to me is figuring out how big a moat there is around the business. What I love, of course, is a big castle and a big moat with piranhas and crocodiles.

Warren Buffett

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Research Insights: The Power of Wide Economic Moat

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

How We Determine a Company's Economic Moat

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

Wide Moat
Strong and sustainable advantages that are expected to last for decades
Narrow Moat
Moderate advantages that provide some protection but are less durable
No Moat
No identifiable long-term competitive advantages

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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Every business has a fair value, its true price. Where market price tells you the price other people are willing to pay, fair value shows the value of a stock based on an analysis of the company’s actual financials (such as cash balance, revenue, operating margin, etc).

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