Alibaba Group HoldingBABA +2.92%82 Return-on-Tangible-Equity is 13.23% as of Mar. 2026, which is 48% below its 10-year median of 25.22. GuruFocus rates BABA with a GF Score™ of 82/100 and a GF Value™ of $119.13 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,058 Retail - Cyclical companies, Alibaba Group Holding ranks better than 61.91% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Alibaba Group Holding's annualized net income for the quarter that ended in Mar. 2026 was $14,823 Mil. Alibaba Group Holding's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $112,050 Mil. Therefore, Alibaba Group Holding's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 13.23%.
The historical rank and industry rank for Alibaba Group Holding's Return-on-Tangible-Equity or its related term are showing as below:
BABA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.76 Med: 25.22 Max: 55.5
Current: 13.75
During the past 13 years, Alibaba Group Holding's highest Return-on-Tangible-Equity was 55.50%. The lowest was 10.76%. And the median was 25.22%.
BABA's Return-on-Tangible-Equity is ranked better than 61.91% of 1058
companies
in the Retail - Cyclical industry
Industry Median: 8.4
vs BABA: 13.75
Alibaba Group Holding (NYSE:BABA) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Alibaba Group Holding Return-on-Tangible-Equity Related Terms
Alibaba Group Holding Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Alibaba Group Holding's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart
BABA vs PDD, MELI, DASH: Return-on-Tangible-Equity Comparison
For the Internet Retail subindustry, Alibaba Group Holding's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Alibaba Group Holding's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Alibaba Group Holding's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 13.23% mean?
Alibaba Group Holding (BABA) has a Return-on-Tangible-Equity of 13.23% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Alibaba Group Holding and its competitors. This is 48% below median its historical median of 25.22. Over the past decade, Alibaba Group Holding's Return-on-Tangible-Equity has ranged from 10.76 to 55.50. According to the industry distribution chart, Alibaba Group Holding ranks #403 out of 1058 companies in the Retail - Cyclical industry, placing it in the top 38.1%.
Is Alibaba Group Holding's Return-on-Tangible-Equity too high?
Alibaba Group Holding's current Return-on-Tangible-Equity of 13.23% is 48% below median its 10-year median of 25.22. Over the past 10 years, this metric has ranged from a low of 10.76 to a high of 55.50. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.40. Alibaba Group Holding's value of 13.23% is 57.5% above this industry median. Based on the distribution chart, Alibaba Group Holding ranks #403 out of 1058 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 Return-on-Tangible-Equity compare to PDD and MELI?
According to the Retail - Cyclical industry distribution chart, Alibaba Group Holding ranks #403 out of 1058 companies for Return-on-Tangible-Equity. This puts Alibaba Group Holding in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.40. Alibaba Group Holding's value of 13.23% is 57.5% above this benchmark. Historically, Alibaba Group Holding's own Return-on-Tangible-Equity has ranged from 10.76 to 55.50 over the past decade. While the company's 10-year median is 25.22 vs. the industry median of 8.40, 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 Return-on-Tangible-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.40, based on 1,058 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alibaba Group Holding's current Return-on-Tangible-Equity of 13.23% is 57.5% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Alibaba Group Holding and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alibaba Group Holding's current Return-on-Tangible-Equity is 13.23%, which is 48% below median its own 10-year median of 25.22. 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 $119.13, compared to a current price of $98.78 — trading 17.1% below its estimated fair value. The current Return-on-Tangible-Equity is 13.23%, which is 48% below median its 10-year median of 25.22 and 57.5% above the Retail - Cyclical industry median of 8.40. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Alibaba Group Holding (BABA), the current Return-on-Tangible-Equity is 13.23% 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 $98.78 is trading 17.1% below its estimated GF Value™ of $119.13.
GuruFocus considers Alibaba Group Holding to be Modestly Undervalued.
Key valuation signals for BABA:
Return-on-Tangible-Equity: 13.23% (48% below median its 10-year median of 25.22)
GF Value™: $119.13 vs. price of $98.78 (17.1% below fair value)
Industry Position: 57.5% above the Retail - Cyclical median (#403 of 1058)
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
Get the complete analysis for BABA
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BABA has been successfully added to your 
