Alibaba Group Holding Limited

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $15B normalized FCF base (vs. TTM FCF of -$11.41B, which reflects an aggressive multi-year AI/cloud-infrastructure capex cycle), approximated from TTM net income of $10.79B and underlying operating cash flow trends; 8% annual FCF growth for years 1-5; 5% for years 6-10; 11% discount rate; 3% terminal growth; $17.54B net cash added; 2.49B shares outstanding.

Reasoning: Alibaba is currently investing heavily in AI and cloud infrastructure, which depresses reported free cash flow well below its underlying earnings power, so a normalized FCF base closer to net income is used; an 11% discount rate reflects China regulatory and geopolitical risk premia versus a comparable US mega-cap, with its net cash position added back.