BABAF (Alibaba Group Holding) ROCE %: 9.53% (As of Mar. 2026)


BABAF Alibaba Group Holding Ltd BABAF
87 GF Score
Price $12.41
GF Value $14.89
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Alibaba Group Holding ROCE %?

Alibaba Group Holding BABAF -3.39% 87 ROCE % is 9.53% as of Mar. 2026. GuruFocus rates BABAF with a GF Score™ of 87/100 and a GF Value™ of $14.89 (Modestly Undervalued). The stock has 4 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Alibaba Group Holding's annualized ROCE % for the quarter that ended in Mar. 2026 was 9.53%.

Alibaba Group Holding  (OTCPK:BABAF) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Alibaba Group Holding ROCE % Related Terms

Alibaba Group Holding ROCE % Historical Data

* Premium members only.

The historical data trend for Alibaba Group Holding's ROCE % 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 ROCE % Chart

Alibaba Group Holding Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.19 7.60 8.62 12.13 10.18

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
ROCE % 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 6.08 15.45 7.55 7.44 9.53
BABAF
87GF Score
Alibaba Group Holding Ltd BABAF
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Alibaba Group Holding ROCE % Calculation

Alibaba Group Holding's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=20194.135/( ( (248882.927 - 60053.522) + (277066.496 - 69122.328) )/ 2 )
=20194.135/( (188829.405+207944.168)/ 2 )
=20194.135/198386.7865
=10.18 %

Alibaba Group Holding's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=19499.428/( ( (266682.616 - 65284.388) + (277066.496 - 69122.328) )/ 2 )
=19499.428/( ( 201398.228 + 207944.168 )/ 2 )
=19499.428/204671.198
=9.53 %

(1) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 9.53% mean?
Alibaba Group Holding (BABAF) has a ROCE % of 9.53% as of Mar. 2026.
Is Alibaba Group Holding's ROCE % too high?
Alibaba Group Holding's current ROCE % is 9.53%. The Retail - Cyclical industry median ROCE % is 7.58. Alibaba Group Holding's value of 9.53% is 25.7% above this industry median. Overall, Alibaba Group Holding has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alibaba Group Holding's ROCE % compare to PDD and MELI?
Alibaba Group Holding's ROCE % of 9.53% can be compared against companies in the Retail - Cyclical industry. The industry median ROCE % is 7.58. Alibaba Group Holding's value of 9.53% is 25.7% 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 ROCE % for a Retail - Cyclical company?
The median ROCE % among Retail - Cyclical companies is 7.58, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alibaba Group Holding's current ROCE % of 9.53% is 25.7% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Retail - Cyclical industry, the median ROCE % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alibaba Group Holding's current ROCE % is 9.53%. 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 (BABAF) is currently considered Modestly Undervalued. The stock's GF Value™ is $14.89, compared to a current price of $12.41 — trading 16.6% below its estimated fair value. The current ROCE % is 9.53% and 25.7% above the Retail - Cyclical industry median of 7.58. Alibaba Group Holding's overall GF Score™ is 87/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Alibaba Group Holding (BABAF), the current ROCE % is 9.53% 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 (BABAF) Overvalued in 2026?

Based on GuruFocus' analysis, Alibaba Group Holding stock appears to be undervalued. The current stock price of $12.41 is trading 16.6% below its estimated GF Value™ of $14.89. GuruFocus considers Alibaba Group Holding to be Modestly Undervalued.

Key valuation signals for BABAF:

  • ROCE %: 9.53%
  • GF Value™: $14.89 vs. price of $12.41 (16.6% below fair value)
  • GF Score™: 87/100 with 4 warning signs
  • Industry Position: 25.7% above the Retail - Cyclical median

No single metric tells the full story. See the BABAF 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.
87GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$12.41
Price
$14.89
GF Value