Alibaba Group HoldingBABA +1.07%83 EV-to-EBIT is 13.90 as of Jul. 11, 2026, which is 33% below its 10-year median of 20.63. GuruFocus rates BABA with a GF Score™ of 83/100 and a GF Value™ of $119.50 (Fairly Valued). The stock has 5 warning signs investors should review. Among 868 Retail - Cyclical companies, Alibaba Group Holding ranks worse than 51.84% on this metric.
Alibaba Group Holding (NYSE:BABA) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Alibaba Group Holding's Enterprise Value for the quarter that ended in Mar. 2026 was $295,770 Mil.
Alibaba Group Holding's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $19,680 Mil.
* 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.
* 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.
For the Internet Retail subindustry, Alibaba Group Holding's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Alibaba Group Holding's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Alibaba Group Holding's EV-to-EBIT falls into.
Alibaba Group Holding's current Enterprise Value is $273,646 Mil.
Alibaba Group Holding's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $19,680 Mil.
* 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 (BABA) has a EV-to-EBIT of 13.90 as of Jul. 11, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Alibaba Group Holding and its competitors. This is 33% below median its historical median of 20.63. Over the past decade, Alibaba Group Holding's EV-to-EBIT has ranged from 6.88 to 43.67. According to the industry distribution chart, Alibaba Group Holding ranks #450 out of 868 companies in the Retail - Cyclical industry, placing it in the top 51.8%.
Is Alibaba Group Holding's EV-to-EBIT too high?
Alibaba Group Holding's current EV-to-EBIT of 13.90 is 33% below median its 10-year median of 20.63. Over the past 10 years, this metric has ranged from a low of 6.88 to a high of 43.67. The Retail - Cyclical industry median EV-to-EBIT is 13.39. Alibaba Group Holding's value of 13.90 is 3.8% above this industry median. Based on the distribution chart, Alibaba Group Holding ranks #450 out of 868 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Alibaba Group Holding has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Alibaba Group Holding's EV-to-EBIT compare to PDD and MELI?
According to the Retail - Cyclical industry distribution chart, Alibaba Group Holding ranks #450 out of 868 companies for EV-to-EBIT. This places Alibaba Group Holding in the lower half of its industry. The industry median EV-to-EBIT is 13.39. Alibaba Group Holding's value of 13.90 is 3.8% above this benchmark. Historically, Alibaba Group Holding's own EV-to-EBIT has ranged from 6.88 to 43.67 over the past decade. While the company's 10-year median is 20.63 vs. the industry median of 13.39, Alibaba Group Holding has consistently been above 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 EV-to-EBIT for a Retail - Cyclical company?
The median EV-to-EBIT among Retail - Cyclical companies is 13.39, based on 868 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alibaba Group Holding's current EV-to-EBIT of 13.90 is 3.8% above 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Alibaba Group Holding and its competitors. For the Retail - Cyclical industry, the median EV-to-EBIT is 13.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alibaba Group Holding's current EV-to-EBIT is 13.90, which is 33% below median its own 10-year median of 20.63. 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 Fairly Valued. The stock's GF Value™ is $119.50, compared to a current price of $112.33 — trading 6% below its estimated fair value. The current EV-to-EBIT is 13.90, which is 33% below median its 10-year median of 20.63 and 3.8% above the Retail - Cyclical industry median of 13.39. Alibaba Group Holding's overall GF Score™ is 83/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Alibaba Group Holding (BABA), the current EV-to-EBIT is 13.90 as of Jul. 11, 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 $112.33 is trading 6% below its estimated GF Value™ of $119.50.
GuruFocus considers Alibaba Group Holding to be Fairly Valued.
Key valuation signals for BABA:
EV-to-EBIT: 13.90 (33% below median its 10-year median of 20.63)
GF Value™: $119.50 vs. price of $112.33 (6% below fair value)
Industry Position: 3.8% above the Retail - Cyclical median (#450 of 868)
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.
83GF Score
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