$Alibaba(BABA)$ $Alibaba(09988)$ BABA fwd P/E @12.5, with earnings growth next year expected to be 15%
- That would imply a P/EG ratio of less than 1, making it a relative value, especially if you believe peak regulation has passed
- In addition, you are getting the parts of the business that are not yet as profitable as the core, at a relative discount
- There is also a significant amount of cash for share buybacks
- Of course there are risks: headline, execution, competition. Ask yourself if these have already been priced into the stock.