2Settimana·

Multiples analysis of global e-commerce conglomerates

In studying MercadoLibre $MELI (+0,13%) I also looked at the world's main competitors: Amazon $AMZN (+0,5%) and Alibaba $BABA (-0,85%)

The findings on valuation multiples are clear: Alibaba is clearly undervalued compared to its American competitors.

EV/EBITDA

Alibaba: 8.16x

Amazon: 21.51x

MercadoLibre: 35.37x

EV/SALES

Alibaba: 1.54x

Amazon: 3.81x

MercadoLibre: 4.71x

PER

Alibaba: 17.44x

Amazon: 47.20x

MercadoLibre: 62.27x

My opinion on this discrepancy 💡 ?

1. Alibaba's growth is at half-mast (+1.6% in 2024) while MercadoLibre is growing by +31.13%.

2. China is scaring investors with its slowing growth, but also its economic and geostrategic opacity.

Do you see Alibaba's multiples as an investment opportunity? 🤔

#stockanalysis
#bourse
#stocks
#tech
#ecommerce
#valuation

3 Commenti

Toshi@Toshi-and-the-Mountain

2Settimana

I invested in $BABA long long time ago and after a while I sold taking some profit.

Chinese stocks are such a pain because of their government. Sure they have nice companies, but once their size scares out the government or once they are not useful to achieve government plans then they get crippled down.

If you want to invest in China always look for companies aligned with government strategies (BYD is the current example) else just put your money somewhere else. It will grow faster and with less pain.

•

Theo@stockpicker@stockpickerFr

2Settimana

@Toshi-and-the-Mountain thanks for your insights. I still own some JD.com ($JD) as I’m really impressed by their technological assets in terms of logistics and capacity to deliver in one day 90% of the Chinese.
Though I agree, Chinese stocks never got the multiple they deserved when acting independently politically… too bad 🥲

•

Toshi@Toshi-and-the-Mountain

2Settimana

@stockpickerFr exactly and as we speak this news is just out:

https://finance.yahoo.com/news/tencent-shares-decline-us-adds-182247122.html

Sounds almost like a joke.

••