Stock Valuation / BABA
Is Alibaba Group Holding Limited (BABA) Overvalued? Fair Value & 5-Year Target
Alibaba Group Holding Limited trades at $110.85 (P/E 25.08). Our reference model estimates a fair value of $127.43 at its recent average P/E of 28.83.
| Current price | $110.85 |
|---|---|
| Current EPS | $4.42 |
| Current P/E | 25.08 |
| Average P/E | 28.83 |
| Fair value (at avg P/E) | $127.43 |
| Upside to fair value | +15.0% |
| Illustrative 5-yr target (25× P/E, 15% growth) | $222.25 |
What drives BABA's valuation
Changing either assumption moves the target: a higher P/E multiple or faster EPS growth raises fair value, a lower multiple or slower growth lowers it. The interactive dashboard lets you edit both and re-run the model instantly.
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 Interna
Frequently asked questions
What is BABA's fair value?
At its recent average P/E of 28.83, Alibaba Group Holding Limited (BABA) has a reference fair value of about $127.43, which is +15.0% versus the current price of $110.85.
Is Alibaba Group Holding Limited (BABA) overvalued or undervalued?
Based on the average-P/E reference model, Alibaba Group Holding Limited looks undervalued relative to fair value by roughly +15.0%. This is a model output, not investment advice — change the P/E and growth assumptions in the dashboard for your own view.
What is a 5-year price target for BABA?
Under an illustrative model of 25× P/E and 15% annual EPS growth, the implied 5-year target is $222.25. Adjust both inputs on the interactive page to match your assumptions.
Open the interactive BABA valuation dashboard →
Figures are for informational purposes only and are not investment advice. Data as of 2026-10-14.