Alibaba Group HoldingBABA +0.23%82 Debt-to-EBITDA is 1.95 as of Mar. 2026, which is 64% above its 10-year median of 1.19. GuruFocus rates BABA with a GF Score™ of 82/100 and a GF Value™ of $119.29 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 895 Retail - Cyclical companies, Alibaba Group Holding ranks better than 56.76% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Alibaba Group Holding's Debt-to-EBITDA or its related term are showing as below:
BABA'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.69 Med: 1.19 Max: 2
Current: 2
During the past 13 years, the highest Debt-to-EBITDA Ratio of Alibaba Group Holding was 2.00. The lowest was 0.69. And the median was 1.19.
BABA's Debt-to-EBITDA is ranked better than 56.76% of 895
companies
in the Retail - Cyclical industry
Industry Median: 2.39
vs BABA: 2.00
Alibaba Group Holding (NYSE:BABA) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Alibaba Group Holding Debt-to-EBITDA Related Terms
Alibaba Group Holding Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Alibaba Group Holding's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BABA vs PDD, MELI, DASH: Debt-to-EBITDA Comparison
For the Internet Retail subindustry, Alibaba Group Holding's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alibaba Group Holding Debt-to-EBITDA vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Alibaba Group Holding's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Alibaba Group Holding's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Alibaba Group Holding (BABA) has a Debt-to-EBITDA of 1.95 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Alibaba Group Holding. This is 64% above median its historical median of 1.19. Over the past decade, Alibaba Group Holding's Debt-to-EBITDA has ranged from 0.69 to 2.00. According to the industry distribution chart, Alibaba Group Holding ranks #387 out of 895 companies in the Retail - Cyclical industry, placing it in the top 43.2%.
Is Alibaba Group Holding's Debt-to-EBITDA too high?
Alibaba Group Holding's current Debt-to-EBITDA of 1.95 is 64% above median its 10-year median of 1.19. Over the past 10 years, this metric has ranged from a low of 0.69 to a high of 2.00. The Retail - Cyclical industry median Debt-to-EBITDA is 2.39. Alibaba Group Holding's value of 1.95 is 18.4% below this industry median. Based on the distribution chart, Alibaba Group Holding ranks #387 out of 895 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Alibaba Group Holding has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alibaba Group Holding's Debt-to-EBITDA compare to PDD and MELI?
According to the Retail - Cyclical industry distribution chart, Alibaba Group Holding ranks #387 out of 895 companies for Debt-to-EBITDA. This puts Alibaba Group Holding in the upper half of its industry. The industry median Debt-to-EBITDA is 2.39. Alibaba Group Holding's value of 1.95 is 18.4% below this benchmark. Historically, Alibaba Group Holding's own Debt-to-EBITDA has ranged from 0.69 to 2.00 over the past decade. While the company's 10-year median is 1.19 vs. the industry median of 2.39, Alibaba Group Holding has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Retail - Cyclical company?
The median Debt-to-EBITDA among Retail - Cyclical companies is 2.39, based on 895 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alibaba Group Holding's current Debt-to-EBITDA of 1.95 is 18.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Alibaba Group Holding. For the Retail - Cyclical industry, the median Debt-to-EBITDA is 2.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alibaba Group Holding's current Debt-to-EBITDA is 1.95, which is 64% above median its own 10-year median of 1.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alibaba Group Holding stock overvalued right now?
Based on GuruFocus' analysis, Alibaba Group Holding (BABA) is currently considered Modestly Undervalued. The stock's GF Value™ is $119.29, compared to a current price of $98.14 — trading 17.7% below its estimated fair value. The current Debt-to-EBITDA is 1.95, which is 64% above median its 10-year median of 1.19 and 18.4% below the Retail - Cyclical industry median of 2.39. Alibaba Group Holding's overall GF Score™ is 82/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Alibaba Group Holding (BABA), the current Debt-to-EBITDA is 1.95 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alibaba Group Holding (BABA) Overvalued in 2026?
Based on GuruFocus' analysis, Alibaba Group Holding stock appears to be undervalued.
The current stock price of $98.14 is trading 17.7% below its estimated GF Value™ of $119.29.
GuruFocus considers Alibaba Group Holding to be Modestly Undervalued.
Key valuation signals for BABA:
Debt-to-EBITDA: 1.95 (64% above median its 10-year median of 1.19)
GF Value™: $119.29 vs. price of $98.14 (17.7% below fair value)
Industry Position: 18.4% below the Retail - Cyclical median (#387 of 895)
No single metric tells the full story. See the BABA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alibaba is the world's largest online and mobile commerce company as measured by gross merchandise volume. It operates China's online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer). The China retail e-commerce platform is the most valuable cash flow-generating business at Alibaba. Additional revenue sources include China wholesale e-commerce, international retail and wholesale e-commerce, local consumer services, travel services, cloud computing, digital media and entertainment, Cainiao logistics services, and other businesses.
82GF Score
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