THE TRUTH ABOUT: Alibaba stock is undervalued and poised for 60 upside | History Defined

Shares of the Chinese technology company Alibaba (BABA) have increased 34.1% year-to-date. Despite this notable gain, BABA stock still appears significantly undervalued and may have plenty of room to run. With a blend of strong fundamentals, growth in its core businesses, and favorable valuation metrics, Alibaba could offer a compelling upside in the months ahead.

At its current level, Alibaba trades at a forward price-earnings (P/E) ratio of 12.2x, which appears low considering the expected 19.5% growth in its earnings per share (EPS) in fiscal 2026. BABA stock’s price-sales (P/S) multiple stands at only 2.09x, which is hard to overlook given the company’s solid performance in its e-commerce platforms and fast-growing AI-powered cloud services. For context, Amazon trades at a P/E of 34.5x and a P/S of 3.55x, suggesting Alibaba is undervalued by comparison.