Alibaba Group Holding LimitedOpportunity Rank #150(BABA) Intrinsic Value & DCF Analysis (2026)
Current Price
$104.97
Last updated: Jun 23, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
-2 vs previous
Trend Score
As of 2026-06-22
The intrinsic value of Alibaba Group Holding Limited (BABA) is estimated at $308.06 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $104.97, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 6.97% long-term growth rate and an 8.00% discount rate (calculated: 7.22%), reflecting expected future free cash flow and cost of capital.
The intrinsic value of Alibaba Group Holding Limited (BABA) is estimated at $308.06 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $104.97, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 6.97% long-term growth rate and an 8.00% discount rate (calculated: 7.22%), reflecting expected future free cash flow and cost of capital.Valuation Details
Capital Efficiency
The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.
Fundamental Details
Narrative Details
Trend Details
Investment Coach
- Monitor whether valuation discount remains above 10%.
- Track ROIC versus WACC spread for sustained improvement.
- Follow narrative trend for meaningful shifts in the score direction.
Free Cash Flow (in millions)
How Intrinziq Estimates Fair Value
Intrinziq estimates Alibaba Group Holding Limited's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.
Alibaba Group Holding LimitedConsumer Cyclical
Alibaba Group Holding Limited, through its various subsidiaries, furnishes crucial technological infrastructure and extensive marketing channels. This comprehensive support allows merchants, brands, retailers, and other businesses to effectively engage with their customer base, both within the People's Republic of China and across international markets. The company's operations are organized across seven primary segments: China Commerce, International Commerce, Local Consumer Services, Cainiao (its logistics network), Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others. The company's extensive digital ecosystem features premier online retail platforms like Taobao and Tmall. Wholesale business-to-business transactions are facilitated through 1688.com and Alibaba.com. Globally, it operates retail platforms such as AliExpress, Lazada, Trendyol, and Daraz. For fresh goods and groceries, it offers Freshippo, and Tmall Global specializes in import e-commerce. Monetization and advertising solutions are provided via Alimama, its proprietary platform, which offers diverse marketing services including pay-for-performance, in-feed, and display ads, supported by the Taobao Ad Network and Exchange for real-time bidding. Logistics operations are primarily handled by the Cainiao Network. Its local consumer services encompass Ele.me for on-demand food and delivery, Koubei for restaurant and local service directories, and Fliggy for travel booking. Alibaba Cloud offers a wide array of services, including elastic computing, data storage, networking, security, database management, big data analytics, and Internet of Things (IoT) solutions. It also supplies hardware, software licenses, installation, and application development and maintenance. The digital media and entertainment division includes Youku, an online video platform; Quark, an information search and content consumption tool; and Alibaba Pictures, collectively offering diverse content spanning films, live events, news feeds, literature, and music. Its innovation portfolio further extends to Amap, a mobile application for digital mapping and navigation; DingTalk, a business communication and efficiency platform; the Tmall Genie smart speaker; and Qwen, an advanced artificial intelligence chatbot. Founded in 1999, Alibaba Group is headquartered in Hangzhou, People's Republic of China.