Why Alibaba Group Holding Ltd (NYSE:BABA) Is In News?


Thomson Reuters, a distinguished brokerage company, has placed a 52-week price target of $106.98 on Alibaba Group Holding Ltd (NYSE:BABA) shares after it surveyed top market analysts. Calculating estimated earnings after taking into consideration different elements, it is predicted to come at $3.30 for the next fiscal and $N/A for underway quarter.

Valuation Estimates

Analysts take into account the price to earnings ratio to estimate the firm’s valuation. This ratio, which is also called as the P/E ratio evaluates the company on relative expense factor. The formula to calculate ratio is stock’s latest price/ per share earnings. The P/E ratio of Alibaba Group Holding Ltd (NYSE:BABA) stands at 33.54.

Analysts also work out Price/Earnings Growth ratio in an attempt to estimate the valuation of a firm. This ratio commonly known as the PEG ratio implies the stock’s valuation compared to earnings growth potential. Investors look to invest in the stocks with a lower PEG ratio. For Alibaba Group Holding Limited A, the PEG ratio for coming 3-5 years is 49.30.

Technical Analysis

The technical analysis highlights that Alibaba Group Holding Limited A current is trading $8.88 points away or +10.30% from its 50-day moving average of $86.15. Further it is trading $16.73 or +21.36% away its 200-day moving average of $78.30.

The 52-week high of Alibaba Group Holding Ltd (NYSE:BABA) was $98.86 while lowest point recorded in 52-week was $57.20. It implies if stock price makes a movement of over $-3.83, it will record a new 52-week high. In the case of +66.14% drop, it will touch a new 52-week low.

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