Is Alibaba’s Valuation Way Too Cheap — or a Justified Risk?

Alibaba Group (NYSE: BABA), China’s largest e-commerce and cloud infrastructure company, was once considered a great growth stock. From fiscal 2015 to fiscal 2022 (which ended in March 2022), its revenue and adjusted earnings per share (EPS) expanded at a compound annual growth rate (CAGR) of 41% and 21%, respectively.That explosive growth was driven by the strength of its Taobao and Tmall marketplaces in China, the rising usage of its cloud-based services, and the expansion of its ecosystem with its smaller brick-and-mortar retail, cross-border commerce, logistics, and media segments.Alibaba went public at $68 per American depositary share (ADS) in September 2014, and its stock more than quadrupled to a record closing price of $310.29 on Oct. 27, 2020. At the time, it seemed like one of the safest and simplest plays on China’s booming e-commerce and cloud markets.Continue readinghttps://www.fool.com/investing/2025/08/01/is-alibabas-valuation-way-too-cheap-or-justified/

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