Hong Kong · HKEX · 09988
Alibaba (09988) stock analysis: valuation and financials
专业零售
HK$107.20 -0.9% Price as of Oct 13, 2026
Net cash CNY119.2B and a 3.9% annual share shrink offset by FY2026 operating margin 4.9%, ROIC 3.8% and -CNY54.5B free cash flow; value hinges on capex normalising.
- Market cap
- HK$2.1T
- P/E
- 24.9x
- EV/Sales
- 1.6x
- FCF yield
- -3.0%
- Dividend yield
- 0.9%
- 52-week range
- HK$89.50 – HK$173.60
Research as of Oct 14, 2026
Business quality scorecard
- Growth15
- Profitability18
- Cash flow50
- Balance sheet53
- Capital allocation36
- Innovation51
- Valuation35
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Merchants, brands, consumers and enterprises pay Alibaba for marketplace marketing, transaction commissions, cloud/AI usage, logistics and local services, with China commerce the traditional profit engine — segment revenue and profit mix are not disclosed in the available inputs.
Financials by year
| FY2022Apr 2021–Mar 2022 | FY2023Apr 2022–Mar 2023 | FY2024Apr 2023–Mar 2024 | FY2025Apr 2024–Mar 2025 | FY2026Apr 2025–Mar 2026 | |
|---|---|---|---|---|---|
| Revenue | ¥853.1B | ¥868.7B | ¥941.2B | ¥996.3B | ¥1.0T |
| Revenue growth | +18.9% | +1.8% | +8.3% | +5.9% | +2.7% |
| Gross margin | 36.8% | 36.7% | 37.7% | 40.0% | 39.8% |
| Operating margin | 8.2% | 11.6% | 12.0% | 14.1% | 4.9% |
| Net income | ¥62.2B | ¥72.8B | ¥80.0B | ¥130.1B | ¥103.6B |
| Free cash flow | ¥80.1B | ¥160.8B | ¥146.1B | ¥73.7B | -¥54.4B |
| FCF margin | 9.4% | 18.5% | 15.5% | 7.4% | -5.3% |
Amounts in CNY · What is free cash flow?
Margins FY2026 gross margin 39.81% vs 39.95% (-14bp), but operating margin fell to 4.90% from 14.14% as SG&A rose 47.7% to CNY278.1B (27.2% of revenue vs 18.9%). TTM operating margin 2.90%; Q4 FY2026 -0.35%, Q1 FY2027 5.64%.
- Cash flow WatchFY2026 operating cash flow was CNY76.2B versus net income of CNY103.6B (0.74x), but multi-year cash conversion is 1.35x and TTM OCF CNY78.5B still edges TTM net income CNY73.6B, so the shortfall is recent rather than structural.
- Debt LowNet cash of CNY119.2B (leverage level net cash); net debt/EBITDA -1.5x. TTM cash of CNY142.9B plus short-term investments of CNY242.8B covers total debt of CNY266.5B about 1.4x.
Balance sheet Leverage · Net cash
- Cash & short-term investments
- ¥385.7B
- Total debt
- ¥266.5B
- Net cash
- ¥119.2B
- Interest coverage
- 3.1x
- Current ratio
- 1.4x
As of Jun 30, 2026 · Amounts in CNY · How to read a balance sheet
Management and track record
- Management AdequateCapital returns match cash generation: five-year buybacks of CNY319.0B plus dividends of CNY84.7B broadly equal cumulative free cash flow of CNY406.3B, with share count shrinking 3.9% a year.
Valuation range
Implied value per share · Price when researched: HK$107.20
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
The full report is for members.