Alibaba (BABA) Stock Analysis

June 13, 2026

Here is a fundamental analysis of Alibaba (BABA), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

BABA

GSPC

Alibaba (BABA) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…

Trailing total returns for Alibaba (BABA) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: BABA	Industry group median
1-Year Return	-2.37%	4.16%

Risk

Drawdown

BABA

GSPC

Alibaba (BABA) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: BABA	Industry group median
1-Year Volatility	43.89%	47.42%
Beta	0.49	1.12

Company Profile

Alibaba (BABA) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile fields for Alibaba (BABA)
Profile Item	BABA
Name	Alibaba Group Holding Limited SP ADR
Country/Region	China
GICS Sector	Consumer Discretionary
GICS Industry Group	Consumer Discretionary Distribution & Retail
GICS Industry	Broadline Retail
GICS Sub-Industry	Broadline Retail
Market Capitalization	270.67 billion USD
Currency	USD
Exchange	NYSE
Listing Date	September 19, 2014
Security Type	ADR

Valuation

Price-to-Earnings Ratio (TTM)

Alibaba (BABA) trades at P/E ratio of 17.36, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

BABA

Consumer Discretionary Distribution & Retail industry group

17.36

Group distribution

Max: 54.29
Q3: 31.64
Median: 20.61
BABA: 17.36
Q1: 12.78
Min: 1.13

Largest peers

MELI: 42.01
TJX: 32.76
AMZN: 31.64
HD: 23.31
LOW: 18.66
BABA: 17.36
PDD: 8.55

Where Alibaba (BABA) stands on P/E ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Alibaba (BABA) trades at 0.26 on P/S ratio, in the lower sales-valuation quartile for its industry. That points to a cheaper revenue stream than most peers, with margin quality still doing the heavy lifting.

BABA

Consumer Discretionary Distribution & Retail industry group

0.26

Group distribution

Max: 3.65
Q3: 1.78
Median: 0.73
Q1: 0.28
BABA: 0.26
Min: 0.03

Largest peers

AMZN: 3.45
TJX: 3.02
MELI: 2.53
HD: 1.97
LOW: 1.40
BABA: 0.26
PDD: 0.26

Where Alibaba (BABA) stands on P/S ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Alibaba (BABA) trades at 1.67 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

BABA

Consumer Discretionary Distribution & Retail industry group

1.67

Group distribution

Max: 11.07
Q3: 5.11
Median: 2.24
BABA: 1.67
Q1: 1.05
Min: -3.64

Largest peers

HD: 23.60
TJX: 18.30
MELI: 11.07
AMZN: 5.81
PDD: 1.83
BABA: 1.67
LOW: -13.36

Where Alibaba (BABA) stands on P/B ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: BABA	Industry group median
Price-to-Earnings Ratio (TTM)	17.36	20.61
Price-to-Sales Ratio (TTM)	0.26	0.73
Price-to-Book Ratio (MRQ)	1.67	2.24
Free Cash Flow Yield	-16.28%	3.39%

Profitability

Return on Equity (TTM)

Alibaba (BABA) posts ROE of 9.22%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

BABA

Consumer Discretionary Distribution & Retail industry group

9.22%

Group distribution

Max: 63.82%
Q3: 31.67%
Median: 12.96%
BABA: 9.22%
Q1: 4.89%
Min: -29.94%

Largest peers

HD: 128.38%
TJX: 61.25%
MELI: 31.26%
PDD: 25.40%
AMZN: 24.29%
BABA: 9.22%
LOW: --

Where Alibaba (BABA) stands on ROE within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Alibaba (BABA) keeps 10.12% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

BABA

Consumer Discretionary Distribution & Retail industry group

10.12%

Group distribution

Max: 20.45%
BABA: 10.12%
Q3: 8.75%
Median: 3.25%
Q1: 0.49%
Min: -11.15%

Largest peers

PDD: 21.62%
AMZN: 12.22%
BABA: 10.12%
TJX: 9.40%
HD: 8.41%
LOW: 7.51%
MELI: 6.04%

Where Alibaba (BABA) stands on net margin within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Alibaba (BABA) turns 1.02% of revenue into operating profit, in the lower peer quartile for operating margin. Operating costs are taking a larger share of sales than they do at most peers.

BABA

Consumer Discretionary Distribution & Retail industry group

1.02%

Group distribution

Max: 23.15%
Q3: 11.08%
Median: 4.61%
Q1: 1.68%
BABA: 1.02%
Min: -8.71%

Largest peers

PDD: 18.42%
AMZN: 13.14%
HD: 11.93%
TJX: 11.77%
LOW: 11.07%
MELI: 6.91%
BABA: 1.02%

Where Alibaba (BABA) stands on operating margin within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: BABA	Industry group median
Return on Equity (TTM)	9.22%	12.96%
Return on Assets (TTM)	2.12%	5.45%
Net Profit Margin (TTM)	10.12%	3.25%
Operating Profit Margin (TTM)	1.02%	4.61%
Gross Profit Margin (TTM)	39.81%	38.72%

Financial Strength

Current Ratio (MRQ)

Alibaba (BABA) has current ratio of 1.28, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

BABA

Consumer Discretionary Distribution & Retail industry group

1.28

Group distribution

Max: 2.97
Q3: 1.87
Median: 1.38
BABA: 1.28
Q1: 1.03
Min: 0.46

Largest peers

PDD: 2.54
BABA: 1.28
AMZN: 1.18
MELI: 1.16
TJX: 1.14
LOW: 1.09
HD: 1.05

Where Alibaba (BABA) stands on current ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

Alibaba (BABA) has debt-to-equity ratio of 0.25, in the lower-leverage quartile for its industry. Borrowing is modest relative to equity compared with most peers, which can leave more flexibility through a cycle.

BABA

Consumer Discretionary Distribution & Retail industry group

0.25

Group distribution

Max: 3.27
Q3: 1.82
Median: 1.09
Q1: 0.67
BABA: 0.25
Min: 0.01

Largest peers

HD: 4.59
MELI: 1.70
TJX: 1.36
AMZN: 0.53
BABA: 0.25
PDD: 0.01
LOW: --

Where Alibaba (BABA) stands on debt-to-equity ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: BABA	Industry group median
Current Ratio (MRQ)	1.28	1.38
Debt-to-Equity Ratio (MRQ)	0.25	1.09
Net Debt / EBITDA	-0.32	2.42

Dividends

Dividend Yield (TTM)

Alibaba (BABA) has dividend yield of 0.93%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

BABA

Consumer Discretionary Distribution & Retail industry group

0.93%

Group distribution

Max: 6.62%
Q3: 2.66%
BABA: 0.93%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

HD: 2.84%
LOW: 2.26%
TJX: 1.14%
BABA: 0.93%
AMZN: 0.00%
PDD: 0.00%
MELI: 0.00%

Where Alibaba (BABA) stands on dividend yield within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Alibaba (BABA) has payout ratio of 17.12%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

BABA

Consumer Discretionary Distribution & Retail industry group

17.12%

Group distribution

Max: 78.51%
Q3: 33.46%
BABA: 17.12%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

HD: 65.55%
LOW: 40.57%
TJX: 33.07%
BABA: 17.12%
AMZN: 0.00%
PDD: 0.00%
MELI: 0.00%

Where Alibaba (BABA) stands on payout ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: BABA	Industry group median
Dividend Yield (TTM)	0.93%	0.00%
Dividend Payout Ratio (TTM)	17.12%	0.00%