Alibaba Stock at a Glance
- Current Morningstar Fair Value Estimate: $177
- Alibaba Stock Star Rating: 5 Stars
- Economic Moat Rating: Wide
- Moat Trend Rating: Negative
Alibaba Stock Update
Wide-moat Alibaba Groups BABA plan to split itself into six main companies is a continuation of the policy of empowering business units, which began in 2020. Alibabas shares rose 14% in U.S. trading on March 28 following the news. We expect this restructuring to enhance the operating efficiency and margins of Alibaba Groups business units.
We are maintaining our fair value estimate, based on a discounted cash flow model of the consolidated business, of USD 177 per ADS (HKD 171 per share), and we believe Alibaba is significantly undervalued. We estimate the…
Read the full article at: https://www.morningstar.com/articles/1147558/alibabas-historic-restructuring-will-unlock-the-value-of-its-key-business-segments