Alibaba Stock Alpha and Beta Analysis

BABA -  USA Stock  

USD 82.34  0.13  0.16%

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Alibaba Group Holding. It also helps investors analyze the systematic and unsystematic risks associated with investing in Alibaba Group over a specified time horizon. Remember, high Alibaba Group's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Continue to Alibaba Group Backtesting, Alibaba Group Valuation, Alibaba Group Correlation, Alibaba Group Hype Analysis, Alibaba Group Volatility, Alibaba Group History and analyze Alibaba Group Performance.
Please note that although Alibaba Group alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, Alibaba Group did 0.25  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Alibaba Group Holding stock's relative risk over its benchmark. Alibaba Group Holding has a beta of 1.49  . Let's try to break down what Alibaba's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Alibaba Group will likely underperform.
Alibaba Group Book Value per Share is projected to increase significantly based on the last few years of reporting. The past year's Book Value per Share was at 398.94. The current year Enterprise Value over EBIT is expected to grow to 20.95, whereas Enterprise Value is forecasted to decline to about 571.5 B.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Alibaba Group Quarterly Book Value per Share



Alibaba Group Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Alibaba Group market risk premium is the additional return an investor will receive from holding Alibaba Group long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Alibaba Group. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Alibaba Group's performance over market.
α-0.25   β1.49
90 days against DJI

Alibaba Group expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Alibaba Group's Buy-and-hold return. Our buy-and-hold chart shows how Alibaba Group performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Alibaba Group Market Price Analysis

Market price analysis indicators help investors to evaluate how Alibaba Group stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Alibaba Group shares will generate the highest return on investment. By understating and applying Alibaba Group stock market price indicators, traders can identify Alibaba Group position entry and exit signals to maximize returns.

Alibaba Group Return and Market Media

The median price of Alibaba Group for the period between Thu, Feb 24, 2022 and Wed, May 25, 2022 is 100.37 with a coefficient of variation of 11.55. The daily time series for the period is distributed with a sample standard deviation of 11.39, arithmetic mean of 98.64, and mean deviation of 9.72. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
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About Alibaba Group Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all equity instruments such as Ford or other stocks, funds, and ETFs. Alpha measures the amount that position in Alibaba Group Holding has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2020 2021 2022 (projected)
Earnings per Basic Share55.663.9468.99
EBITDA Margin0.290.260.32

Alibaba Group Upcoming Company Events

As portrayed in its financial statements, the presentation of Alibaba Group's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Alibaba Group's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Alibaba Group's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Alibaba Group. Please utilize our Beneish M Score to check the likelihood of Alibaba Group's management manipulating its earnings.
Upcoming Quarterly Report1st of February 2022
Next Financial Report12th of May 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End12th of May 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

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Continue to Alibaba Group Backtesting, Alibaba Group Valuation, Alibaba Group Correlation, Alibaba Group Hype Analysis, Alibaba Group Volatility, Alibaba Group History and analyze Alibaba Group Performance. 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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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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Alibaba Group technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Alibaba Group technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Alibaba Group trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...