BABA (Alibaba Group Holding) Effective Interest Rate on Debt %: 3.33% (As of Mar. 2026)


BABA Alibaba Group Holding Ltd BABA
84 GF Score
Price $96.14
GF Value $119.14
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Alibaba Group Holding Effective Interest Rate on Debt %?

Alibaba Group Holding BABA -1.89% 84 Effective Interest Rate on Debt % is 3.33% as of Mar. 2026. GuruFocus rates BABA with a GF Score™ of 84/100 and a GF Value™ of $119.14 (Modestly Undervalued). The stock has 5 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Alibaba Group Holding's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was $1,301 Mil. Alibaba Group Holding's average total debt for the quarter that ended in Mar. 2026 was $39,090 Mil. Therefore, Alibaba Group Holding's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 3.33%.


Alibaba Group Holding  (NYSE:BABA) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Alibaba Group Holding Effective Interest Rate on Debt % Related Terms


Alibaba Group Holding Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Alibaba Group Holding's Effective Interest Rate on Debt % 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.

Alibaba Group Holding Effective Interest Rate on Debt % Chart

Alibaba Group Holding Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.66 8.77 8.74 4.22 3.78

Alibaba Group Holding Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.17 4.15 3.93 3.78 3.33

BABA vs PDD, MELI, DASH: Effective Interest Rate on Debt % Comparison

For the Internet Retail subindustry, Alibaba Group Holding's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Alibaba Group Holding's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Alibaba Group Holding's Effective Interest Rate on Debt % falls into.


BABA
84GF Score
Alibaba Group Holding Ltd BABA
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Alibaba Group Holding Effective Interest Rate on Debt % Calculation

Alibaba Group Holding's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Mar. 2025 )+Total Debt  (A: Mar. 2026 ))/ count )
=-1  *  -1420.902/( (34225.373+40876.076)/ 2 )
=-1  *  -1420.902/37550.7245
=3.78 %

where

Total Debt  (A: Mar. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=30569.02 + 3656.353
=34225.373

Total Debt  (A: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=36154.438 + 4721.638
=40876.076

Alibaba Group Holding's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -1300.62/( (37304.067+40876.076)/ 2 )
=-1  *  -1300.62/39090.0715
=3.33 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=33803.527 + 3500.54
=37304.067

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=36154.438 + 4721.638
=40876.076

* 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 Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 3.33% mean?
Alibaba Group Holding (BABA) has a Effective Interest Rate on Debt % of 3.33% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Alibaba Group Holding and its competitors.
Is Alibaba Group Holding's Effective Interest Rate on Debt % too high?
Alibaba Group Holding's current Effective Interest Rate on Debt % is 3.33%. Overall, Alibaba Group Holding has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alibaba Group Holding's Effective Interest Rate on Debt % compare to PDD and MELI?
Alibaba Group Holding's Effective Interest Rate on Debt % of 3.33% can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Retail - Cyclical company?
A good Effective Interest Rate on Debt % depends on the Retail - Cyclical industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Alibaba Group Holding and its competitors. Alibaba Group Holding's current Effective Interest Rate on Debt % is 3.33%. 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 $119.14, compared to a current price of $96.14 — trading 19.3% below its estimated fair value. The current Effective Interest Rate on Debt % is 3.33%. Alibaba Group Holding's overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Alibaba Group Holding (BABA), the current Effective Interest Rate on Debt % is 3.33% 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 $96.14 is trading 19.3% below its estimated GF Value™ of $119.14. GuruFocus considers Alibaba Group Holding to be Modestly Undervalued.

Key valuation signals for BABA:

  • Effective Interest Rate on Debt %: 3.33%
  • GF Value™: $119.14 vs. price of $96.14 (19.3% below fair value)
  • GF Score™: 84/100 with 5 warning signs

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 Group Holding Business Description

Address 1 Matheson Street, Causeway Bay, 26th Floor, Tower One, Times Square, Hong Kong, HKG
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.
84GF Score

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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$96.14
Price
$119.14
GF Value