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Alibaba’s Valuation Compared to Amazon, JD.com, and Walmart

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Valuations for Amazon, JD.com, and Walmart: How they stack up

We’ve already looked at Alibaba’s (BABA) valuations and what’s driving them. Now we’ll analyze the valuations of Amazon, JD.com, and Walmart.

Amazon’s (AMZN) net sales forecasts for the fiscal years ended December 31, 2018, 2019, and 2020 are $235 billion, $286.7 billion, and $343.4 billion, respectively. The stock has gained 65.4% year-to-date and last closed at a premium of 108% to its 52-week low price. It has “strong buy” and “buy” recommendations from 16 and 29 analysts, respectively. The stock has “hold” and “sell” recommendations from two analysts and one analyst, respectively.

Its projected PE ratios are 110.6x, 75.5x, and 50.6x for the fiscal years ended December 31, 2018, 2019, and 2020, respectively.

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JD.com’s revenue projections

JD.com’s (JD) revenue projections are 469 billion yuan, 586.5 billion yuan, and 703 billion yuan for the fiscal years ended December 31, 2018, 2019, and 2020, respectively. The stock has fallen 40.8% year-to-date and last closed at a 1% premium to its 52-week low price. Six analysts have recommended a “strong buy” for the stock, and 15 have rated it a “buy.” Thirteen have rated it a “hold,” and one has recommended a “sell.”

The stock’s projected PE ratios are 58.4x, 27.7x, and 17.7x for the fiscal years ended December 31, 2018, 2019, and 2020, respectively. Partnerships with Alphabet (GOOG) and Walmart could provide it with some respite from the hazards of China’s potential trade war with the United States.

Walmart (WMT) has forecast revenue of $515.2 billion, $530.3 billion, and $546 billion for the fiscal years ended January 31, 2019, 2020, and 2021, respectively. The stock has fallen 3.9% year-to-date and last closed at a 22% premium to its 52-week low price. Seven analysts have rated it a “strong buy,” and seven have recommended a “buy.” Twenty analysts have given it a “hold” recommendation.

Walmart has projected PE ratios of 19.7x, 19.8x, and 18.8x for the fiscal years ended January 31, 2019, 2020, and 2021, respectively.

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