Alibaba (BABA): analysis in plain words
Is Alibaba cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
Alibaba (BABA) is listed on the NYSE and we classify it in retail. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against Alibaba according to those figures, and the questions people ask most about the stock. No buy or sell tips.
Alibaba (BABA) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $105.29 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 25.5x | Price over earnings per share |
| Revenue growth | +8.6% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 7.0% | Profit for every 100 of sales |
| Net debt / EBITDA | Net cash (more cash than debt) | Years of operating profit to repay debt |
| Dividend yield | 1.05% | Annual dividend over price |
| Market cap | $261.9 billion | What the stock market values it at |
The Alibaba figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any BABA figure that is not available shows as N/A: we do not estimate it.
How Alibaba makes money
Most of Alibaba's money comes from e-commerce in China through Taobao and Tmall, where it charges merchants for advertising and commissions, plus quick home delivery. Other key businesses are Alibaba Cloud, its cloud computing and AI services arm, and international commerce through AliExpress, Lazada and Trendyol. Its ADRs trade in New York.
Over the last 12 months, Alibaba brought in revenue of CNY 1.04 trillion. For every 100 it sells, Alibaba keeps 38.2 after the direct cost of what it sells (gross margin) and 7.3 after all operating costs (operating margin). With 132,165 full-time employees, that is about CNY 8 million of revenue per employee.
Alibaba against its sector
To know whether a Alibaba figure is high or low you have to put it next to similar companies. This table compares Alibaba with the median of the 18 retail companies Fintols covers, with data as of November 4, 2026.
| Figure | Alibaba | retail median |
|---|---|---|
| P/E | 25.5x | 26.2x (18) |
| Revenue growth | +8.6% | +7.1% (18) |
| Net margin | 7.0% | 7.2% (18) |
| Dividend yield | 1.05% | 0.78% (18) |
| Net debt / EBITDA | -1.2x | 1.5x (18) |
In short, against the typical retail company, Alibaba grows faster, pays a higher dividend yield and carries less debt. By size, Alibaba ranks number 5 of 17 retail companies quoted in USD on Fintols.
The bull case for Alibaba
What works in favour of Alibaba, according to its figures as of November 4, 2026:
- Analysts expect Alibaba earnings to rise: its P/E on the next 12 months of estimated earnings is 1.7x, below the current 25.5x.
- Alibaba holds more cash than debt (net cash), so it does not depend on lenders to keep investing and is better placed to ride out a bad year.
- Alibaba grew sales +8.6% in its latest quarter against the same quarter a year earlier, while the median retail company Fintols tracks grew +7.1%.
The main risk for Alibaba
Alibaba stock sits 42% below its 52-week high ($181.10): the market has cut its expectations, and it is worth understanding why first.
And, like the rest of retail, Alibaba is exposed to price competition, which keeps margins thin, and a slowdown in consumer spending.
Frequently asked questions about Alibaba
Is it a good time to buy Alibaba stock?
Fintols does not tell you whether to buy or sell Alibaba, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, Alibaba stock trades at $105.29, 42% below its 52-week high ($181.10) and 14% above its low ($91.99). Its P/E is 25.5x against a retail median of 26.2x, and 1.7x on the earnings analysts expect over the next 12 months. With Alibaba, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does Alibaba pay a dividend?
Yes. As of November 4, 2026, Alibaba pays $1.05 per share a year, which at today's price is a yield of 1.05%. It uses 25% of its profit to pay it, which leaves room to keep paying it if profit dips. The retail median on Fintols is 0.78%.
Is Alibaba stock expensive?
It depends on what you compare it with. On P/E, Alibaba trades at 25.5x its last 12 months of earnings: in line with the retail median (26.2x). Including its debt, Alibaba is valued at 1.8x its EBITDA (EV/EBITDA). A high P/E alone does not make Alibaba expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are Alibaba's competitors?
On Fintols we compare Alibaba with Lowe's, TJX and Shopify, which are also in retail. As of November 4, 2026, Lowe's is worth $128.7 billion and trades on a P/E of 19.4; TJX is worth $159.2 billion and trades on a P/E of 26.8; Shopify is worth $196.9 billion and trades on a P/E of 93.9. Each has a side-by-side comparison with Alibaba below.
Alibaba competitors
- Lowe's (LOW) analysis · Alibaba vs Lowe's comparison
- TJX (TJX) analysis · Alibaba vs TJX comparison
- Shopify (SHOP) analysis · Alibaba vs Shopify comparison
To understand Alibaba better
- Economic Moats Explained: From Warren Buffett to AI
- 7 Common Beginner Investing Mistakes (and How to Avoid Them)
More companies like Alibaba: retail stocks. Open the full BABA analysis with its valuation and scenarios. Educational content about Alibaba, not investment advice.