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This Discount on Alibaba Stock Won't Last Forever


This Discount on Alibaba Stock Won’t Last Forever
InvestorPlace
17 hrs ago
© Source: Kevin Chen Photography / Shutterstock.com
Alibaba Group (BABA) headquarters sign located in Hangzhou China
Fundamentally, the valuation assigned
© Provided by InvestorPlace
Alibaba Group (BABA) headquarters sign located in Hangzhou China
Relative to Wall Street estimates for 2021 ( and Alibaba already has reported results for the first nine months) BABA stock trades at 22x earnings. Look out a year, after projected earnings per share growth of 15%, and the multiple drops to 19x.
Back out Alibaba’s cash hoard of over $100 billion even net of debt, and forward price-to-earnings is just 16x. ....

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