Latest Ratios: P/E Ratio 15.2x · EV/EBITDA 15.4x · ROE 9.4%. (2007–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $229.0B | $301.7B | $319.3B | $184.1B | $269.7B | $296.3B | $623.0B | $518.9B | $478.6B | $479.0B | $277.4B |
| Enterprise Value | $241.7B | $387.8B | $386.1B | $110.7B | $239.2B | $247.7B | $449.5B | $323.6B | $422.7B | $405.1B | $225.5B |
| P/E Ratio → | 15.17 | 2.85 | 2.47 | 2.31 | 3.72 | 4.79 | 4.14 | 3.10 | 5.44 | 7.47 | 5.50 |
| P/S Ratio | 1.52 | 0.29 | 0.32 | 0.20 | 0.31 | 0.35 | 0.87 | 1.02 | 1.27 | 1.91 | 1.75 |
| P/B Ratio | 1.43 | 0.27 | 0.29 | 0.17 | 0.24 | 0.27 | 0.57 | 0.59 | 0.78 | 1.09 | 0.86 |
| P/FCF | — | — | 4.09 | 1.22 | 1.63 | 3.37 | 3.42 | 3.74 | 4.72 | 5.33 | 4.33 |
| P/OCF | 20.44 | 3.96 | 1.94 | 1.00 | 1.35 | 2.11 | 2.79 | 2.80 | 3.17 | 4.06 | 3.38 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.38 | 0.39 | 0.12 | 0.28 | 0.29 | 0.63 | 0.63 | 1.12 | 1.62 | 1.42 |
| EV / EBITDA | 15.40 | 3.63 | 2.20 | 0.70 | 1.62 | 2.10 | 3.27 | 2.42 | 4.49 | 4.44 | 3.62 |
| EV / EBIT | 27.56 | 2.79 | 2.61 | 0.93 | 2.25 | 3.09 | 2.64 | 1.88 | 4.17 | 3.90 | 3.60 |
| EV / FCF | — | — | 4.94 | 0.73 | 1.45 | 2.82 | 2.47 | 2.33 | 4.17 | 4.51 | 3.52 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 39.8% | 39.8% | 40.0% | 37.7% | 36.7% | 36.8% | 41.3% | 44.6% | 45.1% | 57.2% | 62.4% |
| Operating Margin | 5.8% | 5.8% | 14.1% | 12.0% | 11.6% | 8.2% | 12.5% | 17.9% | 15.1% | 27.7% | 30.4% |
| Net Profit Margin | 10.1% | 10.1% | 13.1% | 8.5% | 8.4% | 7.3% | 21.0% | 29.3% | 23.3% | 25.6% | 27.6% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.4% | 9.4% | 11.8% | 7.2% | 6.6% | 5.7% | 15.3% | 20.0% | 16.7% | 16.8% | 15.2% |
| ROA | 5.6% | 5.6% | 7.3% | 4.5% | 4.2% | 3.7% | 10.0% | 13.1% | 10.5% | 10.5% | 10.0% |
| ROIC | 3.8% | 3.8% | 9.6% | 8.0% | 7.1% | 5.4% | 8.4% | 11.0% | 9.3% | 16.3% | 15.3% |
| ROCE | 4.3% | 4.3% | 10.4% | 8.4% | 7.5% | 5.3% | 7.5% | 10.0% | 8.5% | 14.0% | 13.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.23 | 0.23 | 0.23 | 0.18 | 0.17 | 0.16 | 0.17 | 0.17 | 0.22 | 0.29 | 0.28 |
| Debt / EBITDA | 2.43 | 2.43 | 1.41 | 1.30 | 1.33 | 1.50 | 1.32 | 1.10 | 1.43 | 1.37 | 1.47 |
| Net Debt / Equity | — | 0.08 | 0.06 | -0.07 | -0.03 | -0.04 | -0.16 | -0.22 | -0.09 | -0.17 | -0.16 |
| Net Debt / EBITDA | 0.81 | 0.81 | 0.38 | -0.47 | -0.21 | -0.41 | -1.26 | -1.46 | -0.59 | -0.81 | -0.83 |
| Debt / FCF | — | — | 0.85 | -0.49 | -0.18 | -0.55 | -0.95 | -1.41 | -0.55 | -0.82 | -0.81 |
| Interest Coverage | 14.21 | 14.21 | 15.39 | 6.67 | 6.25 | 3.89 | 8.25 | 33.17 | 19.54 | 29.16 | 23.47 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.28 | 1.28 | 1.54 | 1.77 | 1.80 | 1.65 | 1.70 | 1.91 | 1.29 | 1.88 | 1.93 |
| Quick Ratio | 1.28 | 1.28 | 1.49 | 1.71 | 1.72 | 1.58 | 1.62 | 1.84 | 1.25 | 1.85 | 1.93 |
| Cash Ratio | 0.75 | 0.75 | 1.07 | 1.43 | 1.45 | 1.28 | 1.37 | 1.55 | 0.98 | 1.55 | 1.61 |
| Asset Turnover | — | 0.54 | 0.55 | 0.53 | 0.50 | 0.50 | 0.42 | 0.39 | 0.39 | 0.35 | 0.31 |
| Inventory Turnover | — | — | 31.63 | 23.02 | 19.25 | 17.90 | 15.10 | 19.02 | 24.24 | 23.63 | — |
| Days Sales Outstanding | — | — | 27.92 | 26.73 | 26.96 | 30.52 | 29.00 | 33.57 | 37.09 | 41.84 | 51.46 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.1% | 11.2% | 9.2% | 9.8% | — | — | — | — | — | — | — |
| Payout Ratio | 32.6% | 32.6% | 22.5% | 22.6% | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.6% | 35.1% | 40.5% | 43.3% | 26.9% | 20.9% | 24.1% | 32.3% | 18.4% | 13.4% | 18.2% |
| FCF Yield | — | — | 24.5% | 81.9% | 61.4% | 29.7% | 29.2% | 26.7% | 21.2% | 18.8% | 23.1% |
| Buyback Yield | 0.5% | 2.5% | 27.4% | 48.6% | 27.7% | 20.3% | 0.1% | 0.0% | 2.3% | 0.0% | 4.9% |
| Total Shareholder Yield | 2.6% | 13.7% | 36.5% | 58.4% | 27.7% | 20.3% | 0.1% | 0.0% | 2.3% | 0.0% | 4.9% |
| Shares Outstanding | — | $2.4B | $2.4B | $2.5B | $2.6B | $2.7B | $2.7B | $2.7B | $2.6B | $2.6B | $2.6B |
Intense domestic competitive pressure
According to current market data, Alibaba trades at a TTM P/E of 14.63, a multiple that appears to discount the company's historical growth profile and suggests investors are pricing in a permanent shift toward lower-margin, asset-heavy operations rather than its traditional high-margin marketplace model.
The forward P/E of 2.21, while potentially skewed by accounting adjustments, implies a market expectation of significant earnings volatility or a lack of confidence in near-term bottom-line recovery. Compared to global peers like Amazon, the current valuation suggests a substantial conglomerate discount, likely driven by geopolitical risk and the ongoing erosion of market share in the core China commerce segment.
Based on reported financial statements, ROIC has trended downward from 2.9% in 2025Q3 to -0.1% in 2026Q4, indicating that the company is struggling to generate returns on its massive capital base as it pivots toward more capital-intensive logistics and cloud infrastructure investments.
This decay in capital efficiency suggests that the incremental capital deployed into Cainiao and other business units is not yet yielding returns that exceed the cost of capital. Investors should monitor whether this trend is a temporary byproduct of aggressive reinvestment or a structural decline in the company's ability to compound value effectively.
As reported in recent filings, the company's DPO has fluctuated significantly, reaching 200 days in 2026Q4, which suggests that Alibaba is increasingly leveraging its supplier relationships to manage liquidity as its core e-commerce operations face mounting competitive pressure and margin compression.
The volatility in working capital metrics, particularly the lack of consistent DSO and CCC data, complicates the assessment of operational efficiency. The reliance on extended payment terms to suppliers may indicate a strategic effort to preserve cash, but it also raises questions about the sustainability of these relationships if competitive pressures continue to intensify.
According to the latest balance sheet data, Alibaba maintains a modest debt-to-equity ratio of 0.23, providing a significant buffer against financial distress despite the recent deterioration in operating income and the company's transition toward a more capital-intensive business model.
While the low leverage profile is a clear strength, the interest coverage ratio has shown significant volatility, dropping to 14.99 in 2026Q4 from higher levels in previous periods. This suggests that while the company is not at immediate risk of insolvency, its ability to service debt comfortably is becoming increasingly sensitive to the ongoing margin compression in its core segments.
The most commonly misapplied metric for Alibaba is Gross Merchandise Volume (GMV), which, as reported in historical filings, often obscures the underlying shift in revenue quality as the company moves from high-margin commission models to lower-margin direct-sales and logistics-heavy operations.
Investors frequently rely on GMV to gauge growth, yet this metric fails to account for the take-rate compression and the rising costs associated with fulfillment. A more accurate assessment of the company's earning power would focus on Customer Management Revenue (CMR) and segment-level operating margins, which better reflect the health of the core advertising and cloud businesses.
Includes 30+ ratios · 20 years · Updated daily
Wall Street verdict, signals, and target summaries.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying BABA stock.
Alibaba Group Holding Limited's current P/E ratio is 15.2x. The historical average is 4.4x. This places it at the 100th percentile of its historical range.
Alibaba Group Holding Limited's current EV/EBITDA is 15.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 3.2x.
Alibaba Group Holding Limited's return on equity (ROE) is 9.4%. The historical average is 30.5%.
Based on historical data, Alibaba Group Holding Limited is trading at a P/E of 15.2x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Alibaba Group Holding Limited's current dividend yield is 2.10% with a payout ratio of 32.6%.
Alibaba Group Holding Limited has 39.8% gross margin and 5.8% operating margin.
Alibaba Group Holding Limited's Debt/EBITDA ratio is 2.4x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.