BABANEUTRAL

BABA PEG Ratio Analysis

0.02x

Updated 125h ago·SEC filings & market data

Key Takeaway

The PEG ratio divides a stock’s price-to-earnings (P/E) by its earnings growth rate, helping investors judge whether a stock’s price is reasonable given its growth.

Sector Performance

1th percentile

BABA

0.02x

Sector Median

0.97x

Sector Avg

2.92x

Prior Period

0.03x(Jun 2026)

↑ Improving

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Deep Analysis

The PEG ratio divides a stock’s price-to-earnings (P/E) by its earnings growth rate, helping investors judge whether a stock’s price is reasonable given its growth.

At 0.02x, BABA’s PEG is far below 1.0x, which typically signals deep undervaluation relative to its expected earnings growth, but such an extreme reading merits caution. Among sector peers, the median PEG is 0.92x, and BABA ranks in the 1st percentile, meaning its ratio is lower than virtually all comparable companies. Over the last eight quarters the trend is decreasing, with a quarter-over-quarter decline of -33.3% and a year-over-year change not available. A very low PEG combined with a decreasing trend can imply that growth expectations are being cut faster than the stock price is falling, which heightens risk if earnings disappoint; conversely, it could offer an opportunity if growth stabilizes. This metric supports the overall NEUTRAL verdict because the extreme undervaluation signal is tempered by the deteriorating trend, creating a balanced picture that does not clearly favor bullish or bearish conviction.