Baidu, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $2.5B normalized FCF base (vs. TTM FCF of -$1.89B, which reflects heavy near-term AI/Ernie-model and cloud infrastructure capex) approximated from core search and cloud operating profitability; 6% annual FCF growth for years 1-5; 4% for years 6-10; 11% discount rate; 3% terminal growth; $7.85B net cash added; 341.70M shares outstanding.

Reasoning: Baidu is investing heavily in AI infrastructure and its Ernie model family, which depresses reported free cash flow well below its core search and cloud business's underlying earning power, so a normalized FCF base is used; an 11% discount rate reflects China regulatory and competitive risk, with its substantial net cash position added back.