Alibaba Group Holding (NYSE:BABA) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Alibaba Group Holding Forward PE Ratio Related Terms
Alibaba Group Holding Forward PE Ratio Historical Data
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The historical data trend for Alibaba Group Holding's Forward PE Ratio 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 Forward PE Ratio Chart
Alibaba Group Holding Annual Data
Trend
2016-03
2017-03
2018-03
2019-03
2020-03
2021-03
2022-03
2023-03
2024-03
2025-03
2026-03
Forward PE Ratio
21.88
25.38
26.04
26.74
22.12
18.94
12.25
11.17
7.94
12.86
15.86
Alibaba Group Holding Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
28.82
21.88
23.42
31.15
20.08
25.38
33.11
34.13
26.11
26.04
28.57
28.01
20.53
26.74
25.38
24.51
25.13
22.12
25.51
29.85
17.51
18.94
23.47
15.87
11.86
12.25
13.32
10.33
9.59
11.17
9.21
9.63
7.68
7.94
8.61
12.50
8.76
12.86
11.57
22.08
16.08
15.86
BABA vs PDD, MELI, DASH: Forward PE Ratio Comparison
For the Internet Retail subindustry, Alibaba Group Holding's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Alibaba Group Holding's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Alibaba Group Holding's Forward PE Ratio falls into.
Alibaba Group Holding Forward PE Ratio Calculation
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Alibaba Group Holding (BABA) has a Forward PE Ratio of 15.03 as of Jul. 03, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Alibaba Group Holding and its competitors. According to the industry distribution chart, Alibaba Group Holding ranks #253 out of 501 companies in the Retail - Cyclical industry, placing it in the top 50.5%.
Is Alibaba Group Holding's Forward PE Ratio too high?
Alibaba Group Holding's current Forward PE Ratio is 15.03. The Retail - Cyclical industry median Forward PE Ratio is 14.95. Alibaba Group Holding's value of 15.03 is 0.5% above this industry median. Based on the distribution chart, Alibaba Group Holding ranks #253 out of 501 companies in the Retail - Cyclical industry, which is below the industry midpoint. 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 Forward PE Ratio compare to PDD and MELI?
According to the Retail - Cyclical industry distribution chart, Alibaba Group Holding ranks #253 out of 501 companies for Forward PE Ratio. This places Alibaba Group Holding in the lower half of its industry. The industry median Forward PE Ratio is 14.95. Alibaba Group Holding's value of 15.03 is 0.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Retail - Cyclical company?
The median Forward PE Ratio among Retail - Cyclical companies is 14.95, based on 501 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alibaba Group Holding's current Forward PE Ratio of 15.03 is 0.5% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Alibaba Group Holding and its competitors. For the Retail - Cyclical industry, the median Forward PE Ratio is 14.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alibaba Group Holding's current Forward PE Ratio is 15.03. 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 Forward PE Ratio is 15.03 and 0.5% above the Retail - Cyclical industry median of 14.95. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Alibaba Group Holding (BABA), the current Forward PE Ratio is 15.03 as of Jul. 03, 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:
Forward PE Ratio: 15.03
GF Value™: $119.14 vs. price of $96.14 (19.3% below fair value)
Industry Position: 0.5% above the Retail - Cyclical median (#253 of 501)
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.
84GF Score
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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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