Alibaba Group Stock Target Price and Analyst Consensus

BABA -  USA Stock  

USD 117.62  5.51  4.91%

The current analyst and expert consensus on Alibaba Group is Buy, with 0 strong sell and 11 strong buy opinions. The current projected Alibaba Group target price consensus is 229.39 with 18 analyst opinions. The most common way Alibaba Group Holding analysts use to provide recommendation to the public is financial statements analysis. Many experts also interview Alibaba Group executives and customers to further validate their buy or sell advice. Alibaba Group buy-or-sell recommendation module provides average expert sentiment on the projected Alibaba Group Holding target price to derive its highest and lowest estimates based on projected price volatility of 59.661. Continue to Macroaxis Advice on Alibaba Group to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon.
  
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The current year Gross Profit is expected to grow to about 338.4 B. The current year Profit Margin is expected to grow to 0.07. Alibaba Group Total Assets are projected to increase significantly based on the last few years of reporting. The past year's Total Assets were at 1.7 Trillion. The current year Current Assets is expected to grow to about 688.9 B, whereas Accumulated Other Comprehensive Income is forecasted to decline to (34 B).

Alibaba Group Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Alibaba target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Alibaba target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Number of Opinions17
Lowered Outlook0
Raized Outlook0
Buy
Most Alibaba analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to helps potential investors understand Alibaba stock's fair price compared to its market value. Analysts arrive at stock ratings after researching public financial statements of Alibaba Group Holding, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

Alibaba Group Target Price Projection

Alibaba Group's current and average target prices are 117.62 and 229.39, respectively. The current price of Alibaba Group is the price at which Alibaba Group Holding is currently trading. On the other hand, Alibaba Group's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Alibaba Group Market Quote on 25th of June 2022

Low Price114.3Odds
High Price118.09Odds

117.62

Target Price

Analyst Consensus On Alibaba Group Target Price

Low Estimate140.0Odds
High Estimate407.0Odds
Number of Analysts18
Standard Deviation59.661

229.388

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Alibaba Group Holding and the information provided on this page.

Alibaba Group Analyst Ratings

Alibaba Group's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Alibaba Group stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Alibaba Group's financials, market performance, and future outlook by experienced professionals. Alibaba Group's historical ratings below, therefore, can serve as a valuable tool for investors.

Analyst Consensus Breakdown

Average Consensus Estimates

About Alibaba Group Target Price Projections

Alibaba Group's target price is an analyst's projection of its future price. Price targets can be assigned to all types of securities, from complex investment products to stocks such as Alibaba Group Holding and even bonds. If the target price is unavailable, it is most likely because there were not enough analyst opinions to come up with a consensus estimate. When setting a price target estimate, an analyst is trying to determine what the Stock is worth and where the price will be in a year from now. Generally, the target price of Alibaba depends on its intrinsic valuation, beta (i.e., risk over market), and overall volatility. Most analysts publish their price targets in research reports on specific companies, along with their buy, hold, or sell recommendations. Stock price targets are often quoted in the financial news media. Macroaxis uses multiple feeds to provide overall target price projection for Alibaba Group Holding including analysis of its current option contracts.
Alibaba Group's latest option contracts expiring on 2022-06-24 are carrying combined implied volatility of 49.87 with a put-to-call open interest ratio of 0.66 over 148 outstanding agreements suggesting investors are buying more calls than puts on contracts expiring on 2022-06-24. The current put volume is at 36638, with calls trading at the volume of 87042. This yields a 0.42 put-to-call volume ratio. The Alibaba Group option chain provides detailed quote and price information for the current Alibaba Group Holding option contracts. It shows all of Alibaba Group's listed puts, calls, expiration dates, strike prices, and other pricing information.

Open Interest Against 2022-06-24 Option Contracts

Alibaba Group option prices can potentially be used to forecast stock returns because most option chains provide information not only about the current prices but also about the future conditions in Alibaba Group's lending market. For example, when Alibaba Group's puts are not actively trading or completely missing in the marketplace, investors can use it to internalize expected shorting costs. So if an investor is writing a put option on Alibaba Group, he or she must hedge the risk by shorting Alibaba Group stock over its option's life.
The chart above shows Alibaba Group's distribution of open interest by maturity on contracts that have not yet been settled. The area between the two highest points is the projection of the price at expiration. Alibaba Group's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Alibaba Group's option, there is no secondary market available for investors to trade.

Alibaba Group Maximum Pain Price across 2022-06-24 Option Contracts

Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of particular securities such as Alibaba Group close to expiration to expire worthless. According to most research, approximately 10% to 15% of all stock options are exercised, while about 35% expire worthlessly, with roughly 50% traded out before the expiration date. So, Max pain occurs when market makers reach a net positive position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthless.
Alibaba Group's stock options are financial instruments that give investors the right to buy or sell shares of Alibaba Group Holding common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Alibaba stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Alibaba Group's stock price goes up or down, the stock options follow.
Continue to Macroaxis Advice on Alibaba Group to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon.

Alibaba Group Holding In The Money Call Balance

When Alibaba Group's strike price is surpassing the current stock price, the option contract against Alibaba Group Holding stock is said to be in the money. When it comes to buying Alibaba Group's options that are 'In the Money' or 'Out of the Money', the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
While 'out-of-the-money' options written on Alibaba Group Holding are typically viewed as the more aggressive, there are potential upsides to purchasing these types of options contracts. For one, the cost to buy an 'Out of the Money' option is lower than the cost to buy an 'In the Money' option. This cost-benefit is due to the fact that at the time of the purchase, 'Out of the Money' contracts have no intrinsic value. So, while the potential for a 100% loss is more significant, the cost and risk to enter the trade are lower.

Alibaba Current Options Market Mood

Alibaba Group's open interest and total value indicators provide investors with the necessary information to digest the overall options buildup for its expiring contracts. In addition, it helps Alibaba Stock's traders understand whether a recent fall or rise in the market is unreasonable and if the time has come to take contrarian positions. These ratios are calculated based on options trading volumes and current open interest.

Put-to-Call Open Interest

Put-to-Call Volume

Most options investors, including buyers and sellers of Alibaba Group's calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Alibaba Group's option open interest and volume spread between outstanding puts and calls are regarded by many investors as reliable indicators of the overall future market direction. Using current Alibaba Group's option volume and open interest to make an investment decision is considered a contrarian-sentiment measure that can be utilized in many timing strategies in both derivative and spot marketplace.

Additional Alibaba Group Value Projection Modules

Most investment researchers agree that the mispricing and readjustment of any Stock value happens often and is sometimes even predictable, but there is no strong theory explaining why it happens. The current price of Alibaba Group is a key component of Alibaba Group valuation and have some predictive power on the future returns of a Alibaba Group.
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
112.33117.30122.27
Details
Intrinsic
Valuation
LowReal ValueHigh
105.86142.62147.59
Details
Naive
Forecast
LowNext ValueHigh
107.99112.96117.92
Details
Earnings
Estimates (3)
LowProjected EPSHigh
5.946.587.01
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.

Additional Alibaba Group Value Projection Modules

Most investment researchers agree that the mispricing and readjustment of any Stock value happens often and is sometimes even predictable, but there is no strong theory explaining why it happens. The current price of Alibaba Group is a key component of Alibaba Group valuation and have some predictive power on the future returns of a Alibaba Group.
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
112.33117.30122.27
Details
Intrinsic
Valuation
LowReal ValueHigh
105.86142.62147.59
Details
Naive
Forecast
LowNext ValueHigh
107.99112.96117.92
Details
Earnings
Estimates (3)
LowProjected EPSHigh
5.946.587.01
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.

Trending Themes

If you are a self-driven investor, you will appreciate our idea-generating investing themes. Our themes help you align your investments inspirations with your core values and are essential building blocks of your portfolios. A typical investing theme is an unweighted collection of up to 20 funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of equities with common characteristics such as industry and growth potential, volatility, or market segment.
Macroaxis Index
Invested few shares
Software
Invested over 20 shares
Continue to Macroaxis Advice on Alibaba Group to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon. 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 Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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The data published in Alibaba Group's official financial statements usually reflect Alibaba Group's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Alibaba Group Holding. For example, before you start analyzing numbers published by Alibaba accountants, it's critical to develop an understanding of what Alibaba Group's liquidity, profitability, and earnings quality are in the context of the Consumer Cyclical space in which it operates.
Please note, the presentation of Alibaba Group's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Alibaba Group's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Alibaba Group's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Alibaba Group Holding. Please utilize our Beneish M Score to check the likelihood of Alibaba Group's management to manipulate its earnings.