Simply Wall St.

The Value of Alibaba (NYSE:BABA) is Increasing, but Remember the Risks

It is rare to see Alibaba Group Holding Limited’s (NYSE:BABA) price-to-earnings (or “P/E”) ratio of 19.1x be as close as the U.S. market median P/E of 18x. Further, the business itself is still growing, and the company is still in a dominant position amongst Chinese competitors. However, as we all know, the main risk lies in the government’s approach towards the company, and today, we will examine the risks of investing in a Chinese company and what does the current P/E mean for Alibaba.

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