Alibaba Group HoldingMEX:9988N 79 ROE % is 9.84% as of Mar. 2026, which is 35% below its 10-year median of 15.08. GuruFocus rates MEX:9988N with a GF Score™ of 79/100 and a GF Value™ of MXN279.27 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,097 Retail - Cyclical companies, Alibaba Group Holding ranks better than 61.26% on this metric.
The historical rank and industry rank for Alibaba Group Holding's ROE % or its related term are showing as below:
MEX:9988N'
s ROE % Range Over the Past 10 Years
Min: 6.69 Med: 15.08 Max: 23.53
Current: 10.07
During the past 13 years, Alibaba Group Holding's highest ROE % was 23.53%. The lowest was 6.69%. And the median was 15.08%.
MEX:9988N's ROE % is ranked better than 61.26% of 1097
companies
in the Retail - Cyclical industry
Industry Median: 6.46
vs MEX:9988N: 10.07
Alibaba Group Holding (MEX:9988N) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Alibaba Group Holding's ROE % distribution charts can be found below:
* The bar in red indicates where Alibaba Group Holding's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Alibaba Group Holding (MEX:9988N) has a ROE % of 9.84% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Alibaba Group Holding and its competitors. This is 35% below median its historical median of 15.08. Over the past decade, Alibaba Group Holding's ROE % has ranged from 6.69 to 23.53. According to the industry distribution chart, Alibaba Group Holding ranks #425 out of 1097 companies in the Retail - Cyclical industry, placing it in the top 38.7%.
Is Alibaba Group Holding's ROE % too high?
Alibaba Group Holding's current ROE % of 9.84% is 35% below median its 10-year median of 15.08. Over the past 10 years, this metric has ranged from a low of 6.69 to a high of 23.53. The Retail - Cyclical industry median ROE % is 6.46. Alibaba Group Holding's value of 9.84% is 52.3% above this industry median. Based on the distribution chart, Alibaba Group Holding ranks #425 out of 1097 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Alibaba Group Holding has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alibaba Group Holding's ROE % compare to PDD and MELI?
According to the Retail - Cyclical industry distribution chart, Alibaba Group Holding ranks #425 out of 1097 companies for ROE %. This puts Alibaba Group Holding in the upper half of its industry. The industry median ROE % is 6.46. Alibaba Group Holding's value of 9.84% is 52.3% above this benchmark. Historically, Alibaba Group Holding's own ROE % has ranged from 6.69 to 23.53 over the past decade. While the company's 10-year median is 15.08 vs. the industry median of 6.46, 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 ROE % for a Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.46, based on 1,097 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alibaba Group Holding's current ROE % of 9.84% is 52.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Alibaba Group Holding and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alibaba Group Holding's current ROE % is 9.84%, which is 35% below median its own 10-year median of 15.08. 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 (MEX:9988N) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN279.27, compared to a current price of MXN223.22 — trading 20.1% below its estimated fair value. The current ROE % is 9.84%, which is 35% below median its 10-year median of 15.08 and 52.3% above the Retail - Cyclical industry median of 6.46. Alibaba Group Holding's overall GF Score™ is 79/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Alibaba Group Holding (MEX:9988N), the current ROE % is 9.84% 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 (MEX:9988N) Overvalued in 2026?
Based on GuruFocus' analysis, Alibaba Group Holding stock appears to be undervalued.
The current stock price of MXN223.22 is trading 20.1% below its estimated GF Value™ of MXN279.27.
GuruFocus considers Alibaba Group Holding to be Modestly Undervalued.
Key valuation signals for MEX:9988N:
ROE %: 9.84% (35% below median its 10-year median of 15.08)
GF Value™: MXN279.27 vs. price of MXN223.22 (20.1% below fair value)
Industry Position: 52.3% above the Retail - Cyclical median (#425 of 1097)
No single metric tells the full story. See the MEX:9988N 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.
79GF Score
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