Alibaba (BABA) Stock Analysis

October 26, 2026

This is a peer-relative look at Alibaba (BABA): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Consumer Discretionary Distribution & Retail peers, so every number reads in context rather than in isolation.

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 Ltd. 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	247.88 billion USD
Currency	USD
Exchange	NYSE
Listing Date	September 19, 2014
Security Type	ADR

Price 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

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

Calendar-Year Returns

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Calendar-year total returns for Alibaba (BABA) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: BABA	Industry group median
Total Return (1Y)	-41.50%	-4.30%
Total Return (3Y, Annualized)	9.56%	9.57%
Total Return (5Y, Annualized)	-9.84%	-2.41%

Risk Profile

Drawdown History

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.

Return Distribution

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Distribution of monthly total returns for Alibaba (BABA) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: BABA	Industry group median
Volatility (1Y, Annualized)	40.54%	46.90%
Beta (5Y)	0.44	1.14
Max Drawdown (5Y)	-64.15%	-68.83%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. BABA is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: BABA	Industry group median
Sharpe Ratio (1Y)	-1.13	-0.20
Sortino Ratio (1Y)	-1.69	-0.29

Profitability

ROE (TTM)

Alibaba (BABA) posts ROE of 6.36%, in the lower peer quartile. Shareholders’ equity is not producing as much profit as it does at most peers, so margins, asset turns, or balance-sheet structure deserve a closer look.

BABA

Consumer Discretionary Distribution & Retail industry group

6.36%

Group distribution

Max: 62.17%
Q3: 30.47%
Median: 14.86%
Q1: 6.52%
BABA: 6.36%
Min: -20.00%

Largest peers

HD: 104.30%
TJX: 62.17%
AMZN: 30.56%
MELI: 27.50%
PDD: 22.75%
BABA: 6.36%
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 Margin (TTM)

Alibaba (BABA) keeps 7.04% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

BABA

Consumer Discretionary Distribution & Retail industry group

7.04%

Group distribution

Max: 18.57%
Q3: 8.30%
BABA: 7.04%
Median: 3.37%
Q1: 1.06%
Min: -9.41%

Largest peers

PDD: 20.43%
AMZN: 17.44%
TJX: 9.73%
HD: 8.41%
LOW: 7.35%
BABA: 7.04%
MELI: 5.30%

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 Margin (TTM)

Alibaba (BABA) turns 7.30% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

BABA

Consumer Discretionary Distribution & Retail industry group

7.30%

Group distribution

Max: 21.57%
Q3: 11.49%
BABA: 7.30%
Median: 6.15%
Q1: 2.69%
Min: -6.28%

Largest peers

PDD: 24.71%
AMZN: 13.69%
LOW: 13.37%
HD: 12.86%
TJX: 10.91%
BABA: 7.30%
MELI: 6.72%

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 Metrics

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: BABA	Industry group median
ROE (TTM)	6.36%	14.86%
ROA (TTM)	1.56%	5.32%
Net Margin (TTM)	7.04%	3.37%
Operating Margin (TTM)	7.30%	6.15%
Gross Margin (TTM)	38.20%	38.81%

Growth

Revenue Growth

Alibaba (BABA) grew revenue 2.74%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

Alibaba (BABA): Revenue Growth across different time periods, set against Consumer Discretionary Distribution & Retail industry-group medians.

EPS Growth

Alibaba (BABA) grew earnings per share -17.91%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Alibaba (BABA): EPS Growth across different time periods, set against Consumer Discretionary Distribution & Retail industry-group medians.

Growth Metrics

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: BABA	Industry group median
Revenue Growth (YoY)	2.74%	5.18%
Revenue Growth (3Y CAGR)	5.62%	3.32%
EPS Growth (YoY)	-17.91%	0.00%
EPS Growth (3Y CAGR)	17.05%	-5.08%

Financial Strength

Current Ratio (MRQ)

Alibaba (BABA) has current ratio of 1.36, 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

1.36

Group distribution

Max: 2.62
Q3: 1.79
BABA: 1.36
Median: 1.36
Q1: 1.02
Min: 0.49

Largest peers

PDD: 2.62
BABA: 1.36
TJX: 1.15
MELI: 1.12
LOW: 1.11
HD: 1.08
AMZN: 1.03

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 / Equity (MRQ)

Alibaba (BABA) has debt-to-equity ratio of 0.24, 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

0.24

Group distribution

Max: 3.93
Q3: 2.05
Median: 1.25
Q1: 0.71
BABA: 0.24
Min: 0.01

Largest peers

HD: 3.80
MELI: 1.69
TJX: 1.34
AMZN: 0.46
BABA: 0.24
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 Metrics

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: BABA	Industry group median
Current Ratio (MRQ)	1.36	1.36
Debt / Equity (MRQ)	0.24	1.25
Net Debt / EBITDA	-1.20	2.62

Dividends

Dividend Yield (TTM)

Alibaba (BABA) has dividend yield of 7.11%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

BABA

Consumer Discretionary Distribution & Retail industry group

7.11%

Group distribution

BABA: 7.11%
Max: 5.34%
Q3: 2.62%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

BABA: 7.11%
LOW: 2.37%
HD: 1.41%
TJX: 1.23%
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 25.44%, 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

25.44%

Group distribution

Max: 72.73%
Q3: 31.36%
BABA: 25.44%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

HD: 64.80%
LOW: 41.00%
TJX: 32.50%
BABA: 25.44%
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.

Dividend Metrics

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: BABA	Industry group median
Dividend Yield (TTM)	7.11%	0.00%
Dividend Payout Ratio (TTM)	25.44%	0.00%

Valuation

P/E Ratio (TTM)

Alibaba (BABA) trades at P/E ratio of 24.13, 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

24.13

Group distribution

Max: 39.05
Q3: 25.20
BABA: 24.13
Median: 18.67
Q1: 12.65
Min: 4.22

Largest peers

MELI: 49.23
TJX: 26.86
BABA: 24.13
HD: 21.45
AMZN: 19.95
LOW: 16.79
PDD: 8.89

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.

P/S Ratio (TTM)

Alibaba (BABA) trades at 0.24 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

0.24

Group distribution

Max: 3.92
Q3: 1.79
Median: 0.69
Q1: 0.27
BABA: 0.24
Min: 0.03

Largest peers

AMZN: 3.45
MELI: 2.61
TJX: 2.56
HD: 1.89
LOW: 1.23
PDD: 0.25
BABA: 0.24

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.

P/B Ratio (MRQ)

Alibaba (BABA) trades at 1.48 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

1.48

Group distribution

Max: 10.32
Q3: 4.92
Median: 1.89
BABA: 1.48
Q1: 1.03
Min: -4.01

Largest peers

HD: 19.21
TJX: 15.00
MELI: 11.71
AMZN: 4.85
PDD: 1.66
BABA: 1.48
LOW: -14.99

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 Metrics

Alibaba (BABA) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: BABA	Industry group median
P/E Ratio (TTM)	24.13	18.67
P/S Ratio (TTM)	0.24	0.69
P/B Ratio (MRQ)	1.48	1.89
Free Cash Flow Yield (TTM)	-33.34%	3.94%