BABA PEG Ratio Analysis
Updated 378h ago·SEC filings & market data
Key Takeaway
The PEG ratio divides a stock’s price-to-earnings multiple by its expected earnings growth rate, with a lower value suggesting cheaper growth—so at 0.02x, BABA trades at a tiny fraction of its projected earnings growth.
Sector Performance
1th percentileBABA
0.02x
Sector Median
0.73x
Sector Avg
2.54x
Prior Period
0.03x(Jun 2026)
Deep Analysis
The PEG ratio divides a stock’s price-to-earnings multiple by its expected earnings growth rate, with a lower value suggesting cheaper growth—so at 0.02x, BABA trades at a tiny fraction of its projected earnings growth.
This sits far below the sector median of 0.80x, and at the 0th percentile among peers, meaning nearly every comparable stock carries a higher PEG. The trend is not assessable because both the year-over-year and quarter-over-quarter changes are listed as N/A, and there is no historical series beyond the single 0.02x reading. A very low PEG combined with no trend data implies a possible valuation opportunity, but also leaves uncertainty about whether that low ratio stems from a temporary earnings spike or a structural change. This metric supports the overall NEUTRAL verdict, because the current level hints at undervaluation while the missing trend data prevents any stronger bullish or bearish conclusion.
Frequently Asked Questions
What does the PEG Ratio tell investors about BABA?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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0.02x
Sector Median
0.73x
Sector Avg
2.54x
How BABA's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.