Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Alibaba Group Holding's 3-Year RORE % for the quarter that ended in Mar. 2026 was 11.99%.
The industry rank for Alibaba Group Holding's 3-Year RORE % or its related term are showing as below:
BABA's 3-Year RORE % is ranked better than 56.48% of 1050
companies
in the Retail - Cyclical industry
Industry Median: 4.945
vs BABA: 11.99
Alibaba Group Holding (NYSE:BABA) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Alibaba Group Holding 3-Year RORE % Related Terms
Alibaba Group Holding 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Alibaba Group Holding's 3-Year RORE % 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.
For the Internet Retail subindustry, Alibaba Group Holding's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Alibaba Group Holding's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Alibaba Group Holding's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Alibaba Group Holding (BABA) has a 3-Year RORE % of 11.99 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Alibaba Group Holding and its competitors. According to the industry distribution chart, Alibaba Group Holding ranks #457 out of 1050 companies in the Retail - Cyclical industry, placing it in the top 43.5%.
Is Alibaba Group Holding's 3-Year RORE % too high?
Alibaba Group Holding's current 3-Year RORE % is 11.99. The Retail - Cyclical industry median 3-Year RORE % is 4.95. Alibaba Group Holding's value of 11.99 is 142.5% above this industry median. Based on the distribution chart, Alibaba Group Holding ranks #457 out of 1050 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 3-Year RORE % compare to PDD and MELI?
According to the Retail - Cyclical industry distribution chart, Alibaba Group Holding ranks #457 out of 1050 companies for 3-Year RORE %. This puts Alibaba Group Holding in the upper half of its industry. The industry median 3-Year RORE % is 4.95. Alibaba Group Holding's value of 11.99 is 142.5% 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 3-Year RORE % for a Retail - Cyclical company?
The median 3-Year RORE % among Retail - Cyclical companies is 4.95, based on 1,050 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alibaba Group Holding's current 3-Year RORE % of 11.99 is 142.5% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Alibaba Group Holding and its competitors. For the Retail - Cyclical industry, the median 3-Year RORE % is 4.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alibaba Group Holding's current 3-Year RORE % is 11.99. 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 3-Year RORE % is 11.99 and 142.5% above the Retail - Cyclical industry median of 4.95. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Alibaba Group Holding (BABA), the current 3-Year RORE % is 11.99 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:
3-Year RORE %: 11.99
GF Value™: $119.13 vs. price of $98.78 (17.1% below fair value)
Industry Position: 142.5% above the Retail - Cyclical median (#457 of 1050)
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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