Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. The company operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others. It operates Taobao and Tmall, which are digital retail platforms; Alimama, a proprietary monetization platform; 1688.com and Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, Trendyol, and Daraz that are e-commerce platforms; Freshippo, a retail platform for groceries and fresh goods; and Tmall Global, an import e-commerce platform. The company also operates Cainiao Network logistic services platform; Ele.me, an on-demand delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform. In addition, it offers pay-for-performance, in-feed, and display marketing services; and Taobao Ad Network and Exchange, a real-time online bidding marketing exchange. Further, the company provides elastic computing, storage, network, security, database, big data, and IoT services; and hardware, software license, software installation, and application development and maintenance services. Additionally, it operates Youku, an online video platform; Quark, a platform for information search, storage, and consumption; Alibaba Pictures and other content platforms that provide online videos, films, live events, news feeds, literature, music, and others; Amap, a mobile digital map, navigation, and real-time traffic information app; DingTalk, a business efficiency mobile app; Tmall Genie smart speaker; and Qwen, an artificial intelligence chatbot. The company was incorporated in 1999 and is based in Hangzhou, the People's Republic of China.

BUILD UP FREE CASH	2023-03-31 (A)	2024-03-31 (A)	2025-03-31 (A)	2026-03-31 (E)	2027-03-31 (E)	2028-03-31 (E)	2029-03-31 (E)	2030-03-31 (E)
Revenue	868,687	941,168	996,347	1,081,296.8	1,182,939.9	1,261,384.1	1,261,384.1	1,261,384.1
Revenue % Chg.	1.8%	8.3%	5.9%
EBIT	106,120	138,718	151,687	193,501.6	214,049.3	190,964.6	190,964.6	190,964.6
EBIT Margin	12.2%	14.7%	15.2%
Tax Rate	19.2%	24%	22%
NOPAT	85,779.6	105,422.2	118,379.4	155,030	171,685.3	152,771.7	152,771.7	152,771.7
NOPAT Margin	9.9%	11.2%	11.9%	14.3%	14.5%	12.1%	12.1%	12.1%
D&A	46,938	44,504	42,459	31,531.2	36,639.2	36,112.3	36,112.2	36,112.2
D&A / Revenue	5.4%	4.7%	4.3%
Capex	-34,330	-32,087	-85,972	-125,530	-133,998.5	-139,709.1	-139,709.1	-139,709.1
Capex / Revenue	-4%	-3.4%	-8.6%
Chg. NWC	13,482	-13,749	-23,988	-8,349.2	-9,134	-9,739.7	-9,739.7	-9,739.7
Chg. NWC / Revenue	1.6%	-1.5%	-2.4%
Unlevered FCF (UFCF)	111,869.6	104,090.2	50,878.4	52,682	65,192	39,435	39,435	39,435
UFCF % Chg.	193.7%	-7%	-51.1%	3.5%	23.7%	-39.5%	—	—
PV of UFCF	—	—	—	49,306.6	57,105.7	32,330.3	30,258.9	28,320.1
Sum of PV of UFCF	—	—	—	49,306.6	106,412.3	138,742.7	169,001.5	197,321.7

Cost of Debt
Tax Rate
After Tax Cost of Debt	3.3%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	9.6%
Total Debt	248,110
Market Cap	315,004.5
Total Capital	563,114.5
Debt Weighting	44.1%
Equity Weighting	55.9%
WACC	6.8%

Exit Multiple EV/FCF
Terminal Value	316,106.8
PV of Terminal Value	212,466
Cumulative PV of UFCF	197,321.7
Net Debt	-70,624
Equity Value	480,411.7
Shares Outstanding	2,234.3
Implied Share Price	215
Current Share Price	134.6
Implied Upside / (Downside)	59.8%