Question 1

What is Alibaba's P/FCF ratio?

Accepted Answer

Alibaba (BABA) P/FCF ratio is 785.3× as of March 18, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for Alibaba?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For Alibaba specifically, the relevant sector benchmark is the current sector median of 17.1×.

Question 5

Is Alibaba's P/FCF ratio high or low?

Accepted Answer

Alibaba's P/FCF ratio of 785.3× is above its own 5-year average of 70.2× and above the sector median of 17.1×. That places the current reading at the 94th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Alibaba's historical P/FCF ratio range?

Accepted Answer

In the available daily series, Alibaba (BABA) P/FCF ratio has ranged from a low of 6.8× in 2024 to a high of 1035.1× in 2026. The 5-year average is 70.2× and the 5-year median is 12.1×.

Question 7

What was Alibaba's P/FCF ratio in 2025?

Accepted Answer

Alibaba (BABA) P/FCF ratio at the end of 2025 was 28.4×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does Alibaba's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2026	$291B	-$7.1B	—	—	Mar 31, 2026
2025	$306B	$10.8B	28.4×	+19.6×	Mar 31, 2025
2024	$182B	$20.8B	8.7×	-2.3×	Mar 31, 2024
2023	$264B	$24B	11.0×	-2.0×	Mar 31, 2023
2022	$291B	$22.5B	13.0×	-4.4×	Mar 31, 2022
2021	$614B	$35.4B	17.3×	-3.1×	Mar 31, 2021
2020	$521B	$25.6B	20.4×	-4.1×	Mar 31, 2020
2019	$467B	$19B	24.5×	-5.9×	Mar 31, 2019
2018	$455B	$14.9B	30.4×	+12.0×	Mar 31, 2018
2017	$271B	$14.7B	18.4×	+1.3×	Mar 31, 2017
2016	$202B	$11.7B	17.2×	-28.9×	Mar 31, 2016
2015	$215B	$4.67B	46.1×	-32.6×	Mar 31, 2015
2014	$222B	$2.83B	78.7×	—	Mar 31, 2014


DraftKings (DKNG)	15.5×
Avery Dennison (AVY)	15.2×
Wynn Resorts (WYNN)	15.1×
NVR (NVR)	14.9×
Booking Holdings (BKNG)	14.7×
D.R. Horton (DHI)	14.2×
V.F. (VFC)	12.6×
Deckers Outdoor (DECK)	12.0×
Carnival Corporation (CCL)	11.9×
Lululemon Athletica (LULU)	11.6×
Toll Brothers (TOL)	11.1×
Hasbro (HAS)	9.8×
PDD Holdings (PDD)	9.5×
LKQ (LKQ)	9.3×
KB Home (KBH)	8.8×
Mohawk Industries (MHK)	8.4×
MercadoLibre (MELI)	8.2×
Best Buy Co. (BBY)	7.9×
Etsy (ETSY)	7.2×
Leggett & Platt (LEG)	6.6×
Weyco Group (WEYS)	6.2×
Expedia Group (EXPE)	6.0×
MGM Resorts (MGM)	5.5×
Ford Motor (F)	4.8×
General Motors (GM)	4.3×

P/FCF Ratio for Alibaba (BABA) 2014-2026

P/FCF Ratio daily chart for Alibaba (BABA)

Historical P/FCF Ratio for Alibaba (BABA) from 2014 to 2026

About P/FCF Ratio at Alibaba (BABA)

Alibaba P/FCF Ratio by Year

Alibaba P/FCF Ratio 2025: 28.4×

Alibaba P/FCF Ratio 2024: 8.7×

Alibaba P/FCF Ratio 2023: 11.0×

Alibaba P/FCF Ratio 2022: 13.0×

Alibaba P/FCF Ratio 2021: 17.3×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

Alibaba (BABA) Key Financials