Alibaba Beta

BABA
 Stock
  

USD 120.13  4.13  3.56%   

Alibaba Group Holding fundamentals help investors to digest information that contributes to Alibaba Group's financial success or failures. It also enables traders to predict the movement of Alibaba Stock. The fundamental analysis module provides a way to measure Alibaba Group's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Alibaba Group stock. This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  
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Alibaba Beta Analysis

Alibaba Group's Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it will be expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
 2019 2020 2021 2022 (projected)
Cost of Revenue282.37 B421.2 B539.45 B582.04 B
Consolidated Income140.35 B143.28 B47.08 B58.77 B
Beta 
 = 
Covariance 
Variance 
More About Beta | All Equity Analysis

Current Alibaba Group Beta

    
  0.89  
Most of Alibaba Group's fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Alibaba Group Holding is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Alibaba Beta Driver Correlations

Understanding the fundamental principles of building solid financial models for Alibaba Group is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Beta. Since Alibaba Group's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Alibaba Group's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Alibaba Group's interrelated accounts and indicators.
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Compare to competition

In accordance with the recently published financial statements, Alibaba Group Holding has a Beta of 0.89. This is 5.95% higher than that of the Consumer Cyclical sector and significantly higher than that of the Internet Retail industry. The beta for all United States stocks is notably lower than that of the firm.

Alibaba Beta Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Alibaba Group's direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Alibaba Group could also be used in its relative valuation, which is a method of valuing Alibaba Group by comparing valuation metrics of similar companies.
Alibaba Group is currently under evaluation in beta category among related companies.

Alibaba Group Current Valuation Drivers

We derive many important indicators used in calculating different scores of Alibaba Group from analyzing Alibaba Group's financial statements. These drivers represent accounts that assess Alibaba Group's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Alibaba Group's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Average Assets637.77 B876.11 B1,202.73 B1,532.07 B1,724.25 B1,860.38 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA94.65 B124.59 B195.7 B209.19 B117.27 B113.26 B
Earnings Before Interest Taxes and Depreciation Amortization USD14.97 B18.6 B27.96 B31.84 B18.32 B17.45 B
Earnings before Tax82.29 B104.44 B170 B179.86 B89.06 B90.84 B
Average Equity334.14 B441.95 B655.84 B885.16 B965.28 B1,041.48 B
Enterprise Value451.14 B461.37 B479.32 B585.09 B269.98 B351.8 B
Free Cash Flow106.18 B101.33 B147.87 B231.79 B142.76 B123.68 B
Invested Capital317.94 B368.52 B528.31 B777.15 B934.4 B1,008.17 B
Invested Capital Average273.56 B357.95 B475.97 B688.42 B875.82 B944.97 B
Market Capitalization464.24 B469.25 B511.92 B615.01 B294.34 B373.76 B
Tangible Asset Value527.51 B631.87 B975.26 B1,326.61 B1,366.74 B1,474.64 B
Working Capital121.05 B62.6 B221.05 B266 B254.75 B274.86 B

Alibaba Group ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Alibaba Group's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Alibaba Group's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Alibaba Group Institutional Holders

Institutional Holdings refers to the ownership stake in Alibaba Group that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Alibaba Group's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Alibaba Group's value.
Security TypeSharesValue
Nomura Holdings IncPut Options35.2 M4.1 B
Goldman Sachs Group IncCommon Shares22.7 M2.5 B
Susquehanna International Group LlpCall Options18.2 MB
Primecap Management CoCommon Shares17.4 M1.9 B
Fisher Asset Management LlcCommon Shares14.4 M1.6 B
Hsbc Holdings Plc 1Common Shares13.6 M1.5 B
Price T Rowe Associates IncCommon Shares13.3 M1.4 B
E Fund Management Co LtdCommon Shares12.2 M1.3 B
Dodge CoxCommon Shares11.9 M1.3 B
Let's try to break down what Alibaba's beta means in this case. Alibaba Group returns are very sensitive to returns on the market. As the market goes up or down, Alibaba Group is expected to follow.

Alibaba Fundamentals

About Alibaba Group Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Alibaba Group Holding's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Alibaba Group using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Alibaba Group Holding based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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.
Investor biases related to Alibaba Group's public news can be used to forecast risks associated with investment in Alibaba. The trend in average sentiment can be used to explain how an investor holding Alibaba can time the market purely based on public headlines and social activities around Alibaba Group Holding. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Alibaba Group's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Alibaba Group's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Alibaba Group's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Alibaba Group.

Alibaba Group Implied Volatility

    
  58.62  
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

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 Alibaba Group Piotroski F Score and Alibaba Group Altman Z Score analysis. 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

Complementary Tools for Alibaba Stock analysis

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.
Quarterly Earnings Growth YOY
-0.74
Market Capitalization
310.3 B
Quarterly Revenue Growth YOY
0.089
Return On Assets
0.035
Return On Equity
0.0439
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.