Alibaba Group HoldingBABA +2.85%82 ROC (Joel Greenblatt) % is 46.26% as of Mar. 2026, which is 42% below its 10-year median of 80.02. 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 1,123 Retail - Cyclical companies, Alibaba Group Holding ranks better than 88.33% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Alibaba Group Holding's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 46.26%.
The historical rank and industry rank for Alibaba Group Holding's ROC (Joel Greenblatt) % or its related term are showing as below:
BABA'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 34.12 Med: 80.02 Max: 361.85
Current: 53.46
During the past 13 years, Alibaba Group Holding's highest ROC (Joel Greenblatt) % was 361.85%. The lowest was 34.12%. And the median was 80.02%.
BABA's ROC (Joel Greenblatt) % is ranked better than 88.33% of 1123
companies
in the Retail - Cyclical industry
Industry Median: 11.57
vs BABA: 53.46
Alibaba Group Holding's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -4.20% per year.
Alibaba Group Holding (NYSE:BABA) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Alibaba Group Holding ROC (Joel Greenblatt) % Related Terms
Alibaba Group Holding ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Alibaba Group Holding's ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Chart
BABA vs PDD, MELI, DASH: ROC (Joel Greenblatt) % Comparison
For the Internet Retail subindustry, Alibaba Group Holding's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Alibaba Group Holding's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Alibaba Group Holding's ROC (Joel Greenblatt) % falls into.
Alibaba Group Holding ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 46.26% mean?
Alibaba Group Holding (BABA) has a ROC (Joel Greenblatt) % of 46.26% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Alibaba Group Holding and its competitors. This is 42% below median its historical median of 80.02. Over the past decade, Alibaba Group Holding's ROC (Joel Greenblatt) % has ranged from 34.12 to 361.85. According to the industry distribution chart, Alibaba Group Holding ranks #131 out of 1123 companies in the Retail - Cyclical industry, placing it in the top 11.7%.
Is Alibaba Group Holding's ROC (Joel Greenblatt) % too high?
Alibaba Group Holding's current ROC (Joel Greenblatt) % of 46.26% is 42% below median its 10-year median of 80.02. Over the past 10 years, this metric has ranged from a low of 34.12 to a high of 361.85. The Retail - Cyclical industry median ROC (Joel Greenblatt) % is 11.57. Alibaba Group Holding's value of 46.26% is 299.8% above this industry median. Based on the distribution chart, Alibaba Group Holding ranks #131 out of 1123 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. 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 ROC (Joel Greenblatt) % compare to PDD and MELI?
According to the Retail - Cyclical industry distribution chart, Alibaba Group Holding ranks #131 out of 1123 companies for ROC (Joel Greenblatt) %. This places Alibaba Group Holding in the top 12% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.57. Alibaba Group Holding's value of 46.26% is 299.8% above this benchmark. Historically, Alibaba Group Holding's own ROC (Joel Greenblatt) % has ranged from 34.12 to 361.85 over the past decade. While the company's 10-year median is 80.02 vs. the industry median of 11.57, 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 ROC (Joel Greenblatt) % for a Retail - Cyclical company?
The median ROC (Joel Greenblatt) % among Retail - Cyclical companies is 11.57, based on 1,123 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alibaba Group Holding's current ROC (Joel Greenblatt) % of 46.26% is 299.8% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Alibaba Group Holding and its competitors. For the Retail - Cyclical industry, the median ROC (Joel Greenblatt) % is 11.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alibaba Group Holding's current ROC (Joel Greenblatt) % is 46.26%, which is 42% below median its own 10-year median of 80.02. 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 $98.72 — trading 17.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 46.26%, which is 42% below median its 10-year median of 80.02 and 299.8% above the Retail - Cyclical industry median of 11.57. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Alibaba Group Holding (BABA), the current ROC (Joel Greenblatt) % is 46.26% 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 $98.72 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:
ROC (Joel Greenblatt) %: 46.26% (42% below median its 10-year median of 80.02)
GF Value™: $119.13 vs. price of $98.72 (17.1% below fair value)
Industry Position: 299.8% above the Retail - Cyclical median (#131 of 1123)
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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