Wade Shaw
01-07

$Alibaba(BABA)$

Alibaba's current share buyback effort is reminiscent of Apple's a decade ago. If it can maintain this level of buyback over the next ten years, the share count could decrease by 50%. With a compound annual growth rate of 10% in profits over the next decade, and if the market assigns a price-to-earnings (PE) ratio of 30 at that time, the stock price could increase 16-fold.

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Comments

  • JL1Apr
    01-08
    JL1Apr
    Most important is there must be growth to justify the PE ratio.
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