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Alibaba Looks Pretty Cheap Now on a Sum-of-the-Parts Basis

Eric Jhonsa

Following its near-6% selloff to $138.29 on Wednesday amidst a terrible day for tech stocks, Alibaba trades for 18.4 times a fiscal 2020 (ends in March 2020) EPS consensus of $7.52. It's hard to gauge exactly how much Alibaba's newer businesses are depressing its near-term profits, but a look at its earnings reports suggests the amount is substantial.