How Valuation changes after Alibaba's split?
@JacksNiffler:
Alibaba As a WholeBecause of the complicated business, large companies often consider the overall indicators of the company in valuation, such as profit (P/E, EV/EBITDA), income (market-to-Sales ratio, EV/Sales) and cash flow (P/FCF, DCF discounted sustainable cash flow). The advantage is intuitive, simple and can be compared horizontally; The disadvantage is that it is difficult to maximize the valuation potential of each business.For Alibaba, the latest dynamic P/E is 15 times.But the average ttm P/E since listing is 44.2x, Even since July 2021, it has an averag of 17.2 times. The current valuation is lower than the historical average, that is, "Undervalued".2024 adjusted EPS is 60.5 yuan(market consensus), That is, the valuation in 2024 should be US $154 per share, equals US $130.6 per