Alibaba Z Score

BABA -  USA Stock  

USD 91.99  5.51  6.37%

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Continue to Alibaba Group Piotroski F Score and Alibaba Group Valuation analysis.
  
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Alibaba Group Return on Invested Capital is projected to slightly decrease based on the last few years of reporting. The past year's Return on Invested Capital was at 0.24. The current year Invested Capital is expected to grow to about 964.3 B, whereas Capital Expenditure is forecasted to decline to (39.5 B). Alibaba Group Consolidated Income is projected to increase significantly based on the last few years of reporting. The past year's Consolidated Income was at 164.78 Billion. The current year Cost of Revenue is expected to grow to about 522.6 B, whereas Interest Expense is forecasted to decline to about 4.4 B.

Alibaba Z Score Analysis

Alibaba Group's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
 2019 2020 2021 2022 (projected)
Cost of Revenue282.37 B421.2 B484.39 B522.63 B
Consolidated Income140.35 B143.28 B164.78 B177.79 B
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current Alibaba Group Z Score

    
  2.6  
Most of Alibaba Group's fundamental indicators, such as Z Score, 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.
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

Alibaba Z Score 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 Z Score. 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.
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

In accordance with the company's disclosures, Alibaba Group Holding has a Z Score of 2.6. This is 19.5% lower than that of the Consumer Cyclical sector and significantly higher than that of the Internet Retail industry. The z score for all United States stocks is 70.18% higher than that of the company.

Alibaba Z Score 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 Z Score 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 z score 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 B1,761.88 B1,900.98 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA94.65 B124.59 B195.7 B210.72 B242.33 B261.46 B
Earnings Before Interest Taxes and Depreciation Amortization USD14.97 B18.6 B27.96 B32.07 B36.88 B39.8 B
Earnings before Tax82.29 B104.44 B170 B179.86 B206.83 B223.16 B
Average Equity334.14 B441.95 B655.84 B885.16 B1,017.93 B1,098.3 B
Enterprise Value451.14 B461.37 B479.32 B585.09 B672.86 B571.47 B
Free Cash Flow106.18 B101.33 B147.87 B188.97 B217.32 B234.47 B
Invested Capital317.94 B368.52 B528.31 B777.15 B893.72 B964.28 B
Invested Capital Average273.56 B357.95 B475.97 B688.42 B791.68 B854.18 B
Market Capitalization464.24 B469.25 B511.92 B615.01 B707.26 B597.99 B
Tangible Asset Value527.51 B631.87 B975.26 B1,326.61 B1,525.61 B1,646.05 B
Working Capital121.05 B62.6 B221.05 B266 B305.9 B330.05 B

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 258578 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Alibaba Group without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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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 Alibaba Group Piotroski F Score and Alibaba Group Valuation 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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.
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.