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Alibaba Group Holding (HKSE:09988) Cyclically Adjusted Price-to-FCF : 10.50 (As of May. 17, 2024)


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What is Alibaba Group Holding Cyclically Adjusted Price-to-FCF?

As of today (2024-05-17), Alibaba Group Holding's current share price is HK$85.70. Alibaba Group Holding's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was HK$8.16. Alibaba Group Holding's Cyclically Adjusted Price-to-FCF for today is 10.50.

The historical rank and industry rank for Alibaba Group Holding's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

HKSE:09988' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 8.21   Med: 14.46   Max: 52.35
Current: 9.63

During the past years, Alibaba Group Holding's highest Cyclically Adjusted Price-to-FCF was 52.35. The lowest was 8.21. And the median was 14.46.

HKSE:09988's Cyclically Adjusted Price-to-FCF is ranked better than
62.53% of 435 companies
in the Retail - Cyclical industry
Industry Median: 12.84 vs HKSE:09988: 9.63

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Alibaba Group Holding's adjusted free cash flow per share data for the three months ended in Mar. 2024 was HK$1.269. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is HK$8.16 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Alibaba Group Holding Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Alibaba Group Holding's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Alibaba Group Holding Cyclically Adjusted Price-to-FCF Chart

Alibaba Group Holding Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 34.04 15.65 13.68 8.61

Alibaba Group Holding Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.68 10.83 10.91 9.38 8.61

Competitive Comparison of Alibaba Group Holding's Cyclically Adjusted Price-to-FCF

For the Internet Retail subindustry, Alibaba Group Holding's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Alibaba Group Holding's Cyclically Adjusted Price-to-FCF Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Alibaba Group Holding's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Alibaba Group Holding's Cyclically Adjusted Price-to-FCF falls into.



Alibaba Group Holding Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Alibaba Group Holding's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=85.70/8.16
=10.50

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Alibaba Group Holding's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Alibaba Group Holding's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=1.269/117.7354*117.7354
=1.269

Current CPI (Mar. 2024) = 117.7354.

Alibaba Group Holding Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.664 96.409 0.811
201409 0.380 97.948 0.457
201412 1.175 99.707 1.387
201503 0.345 99.927 0.406
201506 0.628 99.267 0.745
201509 0.897 99.927 1.057
201512 1.545 102.015 1.783
201603 0.298 102.785 0.341
201606 0.858 101.686 0.993
201609 0.975 102.565 1.119
201612 2.040 103.225 2.327
201703 0.723 103.335 0.824
201706 1.426 103.664 1.620
201709 1.718 103.994 1.945
201712 3.140 104.984 3.521
201803 0.852 105.973 0.947
201806 2.086 106.193 2.313
201809 1.708 106.852 1.882
201812 3.525 107.622 3.856
201903 1.033 108.172 1.124
201906 1.863 109.601 2.001
201909 2.471 110.260 2.639
201912 5.020 110.700 5.339
202003 0.110 110.920 0.117
202006 2.501 110.590 2.663
202009 2.813 107.512 3.080
202012 5.556 109.711 5.962
202103 1.310 111.579 1.382
202106 1.842 111.360 1.947
202109 1.981 109.051 2.139
202112 4.531 112.349 4.748
202203 -0.402 113.558 -0.417
202206 1.857 113.448 1.927
202209 2.489 113.778 2.576
202212 4.666 114.548 4.796
202303 1.712 115.427 1.746
202306 2.405 115.647 2.448
202309 2.573 116.087 2.610
202312 3.483 117.296 3.496
202403 1.269 117.735 1.269

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Alibaba Group Holding  (HKSE:09988) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Alibaba Group Holding Cyclically Adjusted Price-to-FCF Related Terms

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Alibaba Group Holding (HKSE:09988) Business Description

Address
1 Matheson Street, Causeway Bay, 26th Floor, Tower One, Times Square, Hong Kong, HKG
Alibaba is the world's largest online and mobile commerce company as measured by gross merchandise volume (CNY 8.3 trillion for the fiscal year ended March 2022). It operates China's online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer). Alibaba's China commerce retail division accounted for 67% of revenue in the year ended March 2022. Additional revenue sources include China commerce wholesale (2%), international commerce retail/wholesale (5%/2%), local consumer services (5%), cloud computing (9%), digital media and entertainment platforms (4%), Cainiao logistics services (5%), and innovation initiatives/other (1%).

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