Alibaba (BABA) has returned 14.0% in the last month, 60.7% in the last year, and 0.69% in the last five days. In the last trading session, Alibaba was trading 6.1% above its 100-day moving average, whereas peers Yelp (YELP), eBay (EBAY), and Yandex (YNDX) were trading 1.3%, 7.8%, and 9.4% below their 100-day moving averages, respectively. PayPal (PYPL) was trading 4.6% above its 100-day moving average.
Dissecting Alibaba’s debt situation
Alibaba has short-term debt of $0.96 billion and long-term debt of $19.1 billion, bringing its total debt to $20.1 billion. Considering that it has a total capital of $90.1 billion, its total debt-to-total capital ratio is 22.2%.
It has debt-to-equity, debt-to-assets, and debt-to-EBITDA ratios of 4.3, 0.18, and 1.5, respectively. Its interest coverage ratio is 83.3x.
Of the 47 analysts covering Alibaba, 45 have recommended “buy,” two have recommended “hold,” and none have recommended “sell.” Analysts’ stock price target for the company is $228.50, and their median price target is $231.
Alibaba is the world’s largest Internet player in terms of market capitalization, at ~$505.5 billion. In comparison, peers Yelp, PayPal, eBay, and Yandex have market caps of ~$3.6 billion, ~$99.1 billion, ~$37.2 billion, and ~$11.1 billion, respectively.
A look at Alibaba’s EBITDA numbers
Alibaba’s EBITDA fell 24% to $13.7 billion last year. Analysts are expecting the company to post EBITDA of $21.9 billion this year. Alibaba stock is trading at price-to-EBITDA ratio of 36.9x.