Alibaba Group Earnings Estimate

BABA -  USA Stock  

USD 86.79  0.90  1.03%

Many public companies, such as Alibaba Group, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm. By analyzing Alibaba Group's earnings estimates, investors can diagnose different trends across Alibaba Group's analyst sentiment over time as well as compare current estimates against different timeframes.
Alibaba Group is projected to generate 6.58 in earnings per share on the 31st of December 2022. Alibaba Group earnings estimates module stress-tests analyst consensus about projected Alibaba Group Holding EPS (Earning Per Share) to derive its highest and lowest estimates based on its historical volatility. Continue to Trending Equities.
  
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The current year Gross Profit is expected to grow to about 367.4 B. The current year Profit Margin is expected to grow to 0.24
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Alibaba Group Earnings Estimation Breakdown

Calculation of earning per share of Alibaba Group Holding is based on official Zacks consensus of 3 analysts regarding Alibaba Group future annual earnings. Given the historical accuracy of 80.56%, the future earnings per share of Alibaba Group is estimated to be 6.58 with the lowest and highest values of 5.94 and 7.01, respectively. Please note that this consensus of annual earnings estimates for Alibaba Group Holding is an estimate of EPS before non-recurring items and including employee stock options expenses
  Current EPS 7.12
5.94
Lowest
Expected EPS 6.58
7.01
Highest

Alibaba Group Earnings Projection Consensus

Suppose the current estimates of Alibaba Group's value are higher than the current market price of the Alibaba Group stock. In this case, investors may conclude that Alibaba Group is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Alibaba Group's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyCurrent EPSEPS Estimate for 31st of December 2022

3

80.56%

7.12

6.58

Alibaba Group Earnings History

Earnings estimate consensus by Alibaba Group Holding analysts from Wall Street is used by the market to judge Alibaba Group's stock performance. The investors also use these earnings estimates to evaluate and project the stock performance into the future in order to make their investment decisions. However, we recommend analyzing not only Alibaba Group's upcoming profit reports and earnings-per-share forecasts but also compare them to our different valuation methods.

Alibaba Group Quarterly Earnings Before Interest Taxes and Depreciation Amortization EBITDA

34.12 Billion

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The current year Accumulated Retained Earnings Deficit is expected to grow to about 688.5 B. The current year Earning Before Interest and Taxes EBIT is expected to grow to about 228.7 B As of May 22, 2022, Weighted Average Shares is expected to decline to about 24.5 B. In addition to that, Weighted Average Shares Diluted is expected to decline to about 25.1 B.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Alibaba Group's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Alibaba Group in the context of predictive analytics.
Hype
Prediction
LowEstimated ValueHigh
79.6885.8391.98
Details
Intrinsic
Valuation
LowReal ValueHigh
78.11118.97125.12
Details
Naive
Forecast
LowNext ValueHigh
70.6476.7882.93
Details
17 Analysts
Consensus
LowTarget PriceHigh
140.00229.39407.00
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Alibaba Group. Your research has to be compared to or analyzed against Alibaba Group's peers to derive any actionable benefits. When done correctly, Alibaba Group's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Alibaba Group Holding.
Note that many institutional investors and large investment bankers can move markets due to the volume of Alibaba assets they manage. They also follow analysts to some degree and often drive overall investor sentiments towards Alibaba Group. With so many stockholders watching consensus numbers, the difference between actual and projected earnings is one of the most critical factors driving Alibaba stock price in the short term.

Alibaba Group Earnings per Share Projection vs Actual

Actual Earning per Share of Alibaba Group refers to what the company shows during its earnings calls or quarterly reports. The Expected EPS is what analysts covering Alibaba Group Holding predict the company's earnings will be in the future. The higher the earnings per share of Alibaba Group, the better is its profitability. While calculating the Earning per Share, we use the weighted ratio, as the number of shares outstanding can change over time.

Alibaba Group Estimated Earnings per Share

For an investor who is primarily interested in generating an income out of investing in entities such as Alibaba Group, the EPS ratio can tell if the company is intending to increase its current dividend. Although EPS is an essential tool for investors, it should not be used in isolation. EPS of Alibaba Group should always be considered in relation to other companies to make a more educated investment decision.

Alibaba Quarterly Analyst Estimates and Surprise Metrics

Earnings surprises can significantly impact Alibaba Group's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2022-02-24
2021-12-3116.1816.870.69
2021-11-18
2021-09-301.94791.7539-0.194
2021-08-03
2021-06-302.21082.56550.354716 
2021-05-13
2021-03-311.75831.5997-0.1586
2021-02-02
2020-12-313.20093.41250.2116
2020-11-05
2020-09-302.09172.72140.629730 
2020-08-20
2020-06-301.95992.14270.1828
2020-05-22
2020-03-310.8561.29040.434450 
2020-02-13
2019-12-312.25392.60710.353215 
2019-11-01
2019-09-301.5111.86150.350523 
2019-08-15
2019-06-301.48411.78440.300320 
2019-05-15
2019-03-310.94521.24640.301231 
2019-01-30
2018-12-311.70681.81620.1094
2018-11-02
2018-09-301.10391.39320.289326 
2018-08-23
2018-06-301.21341.1691-0.0443
2018-05-04
2018-03-310.87090.90090.03
2018-02-01
2017-12-311.70291.6846-0.0183
2017-11-02
2017-09-301.03611.29660.260525 
2017-08-17
2017-06-300.93441.19130.256927 
2017-05-18
2017-03-310.65660.6315-0.0251
2017-01-24
2016-12-311.12521.31570.190516 
2016-11-02
2016-09-300.69610.77870.082611 
2016-08-11
2016-06-300.62840.73860.110217 
2016-05-05
2016-03-310.56360.4644-0.099217 
2016-01-28
2015-12-310.87920.97770.098511 
2015-10-27
2015-09-303.423.630.21
2015-08-12
2015-06-303.673.680.01
2015-05-07
2015-03-312.612.980.3714 
2015-01-29
2014-12-314.665.030.37
2014-11-04
2014-09-302.762.760

About Alibaba Group Earnings Estimate

The earnings estimate module is a useful tool to check what professional financial analysts are assuming about the future of Alibaba Group earnings. We show available consensus EPS estimates for the upcoming years and quarters. Investors can also examine how these consensus opinions have evolved historically. We show current Alibaba Group estimates, future projections, as well as estimates 1, 2, and three years ago. Investors can search for a specific entity to conduct investment planning and build diversified portfolios. Please note, earnings estimates provided by Macroaxis are the average expectations of expert analysts that we track. If a given stock such as Alibaba Group fails to match professional earnings estimates, it usually performs purely. Wall Street refers to that as a 'negative surprise.' If a company 'beats' future estimates, it's usually called an 'upside surprise.'
Please read more on our stock advisor page.
Last ReportedProjected for 2022
Accumulated Retained Earnings Deficit638.2 B688.5 B
Earning Before Interest and Taxes EBIT212 B228.7 B
Earnings per Basic Share 63.94  68.99 
Earnings per Diluted Share 62.93  67.89 
Price to Earnings Ratio 24.11  27.31 
Earnings Before Interest Taxes and Depreciation Amortization EBITDA242.3 B261.5 B
Earnings before Tax206.8 B223.2 B
Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to merchants, brands, retailers, and other businesses to engage with their users and customers in the Peoples Republic of China and internationally. The company was incorporated in 1999 and is based in Hangzhou, the Peoples Republic of China. Alibaba Group operates under Internet Retail classification in the United States and is traded on New York Stock Exchange. It employs 259316 people.

Alibaba Group Investors Sentiment

The influence of Alibaba Group's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Alibaba. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Alibaba Group Implied Volatility

    
  91.54  
Alibaba Group's implied volatility exposes the market's sentiment of Alibaba Group Holding stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Alibaba Group's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Alibaba Group stock will not fluctuate a lot when Alibaba Group's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Alibaba Group in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Alibaba Group's short interest history, or implied volatility extrapolated from Alibaba Group options trading.

Current Sentiment - BABA

Alibaba Group Holding Investor Sentiment

Majority of Macroaxis users are currently bullish on Alibaba Group Holding. What is your sentiment towards investing in Alibaba Group Holding? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Pair Trading with Alibaba Group

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Alibaba Group position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alibaba Group will appreciate offsetting losses from the drop in the long position's value.

Alibaba Group Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to Alibaba Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alibaba Group when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Alibaba Group - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Alibaba Group Holding to buy it.
The correlation of Alibaba Group is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Alibaba Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alibaba Group Holding moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Alibaba Group can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Trending Equities. Note that the Alibaba Group Holding information on this page should be used as a complementary analysis to other Alibaba Group's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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When running Alibaba Group Holding price analysis, check to measure Alibaba Group's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alibaba Group is operating at the current time. Most of Alibaba Group's value examination focuses on studying past and present price action to predict the probability of Alibaba Group's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Alibaba Group's price. Additionally, you may evaluate how the addition of Alibaba Group to your portfolios can decrease your overall portfolio volatility.
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Is Alibaba Group's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alibaba Group. If investors know Alibaba will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alibaba Group listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Alibaba Group Holding is measured differently than its book value, which is the value of Alibaba that is recorded on the company's balance sheet. Investors also form their own opinion of Alibaba Group's value that differs from its market value or its book value, called intrinsic value, which is Alibaba Group's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alibaba Group's market value can be influenced by many factors that don't directly affect Alibaba Group's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Alibaba Group's value and its price as these two are different measures arrived at by different means. Investors typically determine Alibaba Group value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alibaba Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.