Alibaba’s transaction volume rivals any of the global companies but the more important thing is that its net income margin (currently at 44%) is DOUBLE the average of the major players (~20%). Its absolute net income is already greater than Ebay, Facebook, Amazon, or Tencent.
The IPO configuration is still unknown, but it may end up being similar to Facebook — and will likely be larger, perhaps an IPO of $17 bn. We have included a section of various valuation scenarios (and will update these as more filings are made).
Paul Schulte has had a career in equity research which spans 22 years on both the buy and sell sides covering the Asian and emerging markets. He also has 5 years of government policy experience in emerging markets. He has been frequently ranked in top-five…read more
