[video] Alibaba Stock Analysis ($BABA) | My Thoughts supported by a Risk and Valuation Assessment

As most frequent followers know, I’m allocating up to 10% of my dividend growth portfolio for undervalued stock opportunities. I firmly believe that Alibaba is such an opportunity for me right now.

At the same time it’s one of the most controversial stocks to buy as can be witnessed by the many different points of view on social media.

I respect all those viewpoints and all I can say is this:

If you don’t feel comfortable investing in Alibaba or Chinese stocks at all, then don’t!

The stock metaverse is really huge and there are still enough other opportunities out there. Don’t feel that you would be missing out on something. Buying because others are buying without understanding the risk your taking might really get you into trouble.

Hence, Investing carries risk and you might simply lose everything.

That’s one of the reasons why I manage my portfolio in tiers which allows me to limit my single stock risk. My position in Alibaba is no exception to that.

Having said all of this, in this video I will share with you why I think Alibaba stock is trading at 145 USD right now.

I’ll share with you my thoughts on the common prosperity fund contribution and what it means for it’s valuation. After that I will walk you through the 3 main risk I see for Alibaba stock and how I manage those risks.

Once done, I’ll run you through some valuation metrics, before I will provide you with my Discounted Cash Flow calculation for Alibaba’s stock.

I hope you enjoy this video and I’m looking forward for your thoughts in the comments.

Chapters

  • 00:00 – Intro and Alibaba story
  • 02:14 – Why the stock is falling like a knife
  • 03:12 – My thoughts about the common prosperity fund
  • 04:46 – Stock fundamentals 
  • 07:20 – The risks I see and how much I discount for them
  • 09:00 – Some basic valuation metrics
  • 10:04 – AliBaba Discounted Cash Flow valuation
  • 14:52 – How much Alibaba stock I own and what I’ll do next

Alibaba stock analysis

Yours Truly,

European Dividend Growth Investor


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Disclaimer

I’m not a certified financial planner/advisor nor a certified financial analyst nor an economist nor a CPA nor an accountant nor a lawyer. I’m not a finance professional through formal education. I’m a person who believes and takes pride in a sense of freedom, satisfaction, fulfillment and empowerment that I get from being financially competent and being conscious managing my personal money. The contents on this blog are for informational and entertainment purposes only and does not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my blog is appropriate for you or anyone else. By reading this blog, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information provided on this blog.

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European DGI

It's my desire to retire early via Dividend Growth Investing as a passive income stream. This is not easy and especially when living in Europe. That's why I started this blog and share my journey: to give you a European perspective.
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SavyFox
1 day ago

Hey European DGI
Good video. I like the Alibaba company, huge potential. Entered into a position last year and will hold for the long term. Equally interesting in my view: JD.com and Tencent. Also Baidu worth a look.
Cheers
SavyFox