Baidu Valuation
| BIDUN Stock | MXN 1,728 63.00 3.78% |
At this time, the firm appears to be overvalued. Baidu Inc shows a prevailing Real Value of 1641.75 per share. The current price of the firm is 1728.0. Our model approximates the value of Baidu Inc from analyzing the firm fundamentals such as Return On Equity of 0.0153, current valuation of 602.47 B, and Profit Margin of 0.03 % as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Baidu's price fluctuation is very steady at this time. Calculation of the real value of Baidu Inc is based on 3 months time horizon. Increasing Baidu's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Baidu stock is determined by what a typical buyer is willing to pay for full or partial control of Baidu Inc. Since Baidu is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Baidu Stock. However, Baidu's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 1728.0 | Real 1641.75 | Hype 1728.0 | Naive 1750.16 |
The intrinsic value of Baidu's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Baidu's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Baidu Inc helps investors to forecast how Baidu stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Baidu more accurately as focusing exclusively on Baidu's fundamentals will not take into account other important factors: Baidu Total Value Analysis
Baidu Inc is currently expected to have takeover price of 602.47 B with market capitalization of 954.41 B, debt of 68.4 B, and cash on hands of 15.88 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Baidu fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
602.47 B | 954.41 B | 68.4 B | 15.88 B |
Baidu Investor Information
About 32.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.3. Some equities with similar Price to Book (P/B) outperform the market in the long run. Baidu Inc has Price/Earnings To Growth (PEG) ratio of 0.73. The entity recorded a loss per share of 146.56. The firm had not issued any dividends in recent years. Baidu had 10:1 split on the 12th of May 2010. Based on the key indicators related to Baidu's liquidity, profitability, solvency, and operating efficiency, Baidu Inc is not in a good financial situation at the moment. It has a very high risk of going through financial straits in August.Baidu Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Baidu has an asset utilization ratio of 32.76 percent. This suggests that the Company is making 0.33 for each dollar of assets. An increasing asset utilization means that Baidu Inc is more efficient with each dollar of assets it utilizes for everyday operations.Baidu Ownership Allocation
Baidu holds a total of 345.55 Million outstanding shares. 30% of Baidu Inc outstanding shares are owned by other corporate entities. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Consequently, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Baidu Profitability Analysis
The company reported the revenue of 124.49 B. Net Income was 10.23 B with profit before overhead, payroll, taxes, and interest of 60.35 B.About Baidu Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Baidu Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Baidu Inc based exclusively on its fundamental and basic technical indicators. By analyzing Baidu's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Baidu's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Baidu. We calculate exposure to Baidu's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Baidu's related companies.Baidu, Inc. provides Internet search services in China and internationally. Baidu, Inc. was founded in 2000 and is headquartered in Beijing, China. BAIDU INC operates under Internet Content Information classification in Mexico and is traded on Mexico Stock Exchange. It employs 42267 people.
8 Steps to conduct Baidu's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Baidu's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Baidu's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Baidu's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Baidu's revenue streams: Identify Baidu's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Baidu's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Baidu's growth potential: Evaluate Baidu's management, business model, and growth potential.
- Determine Baidu's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Baidu's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Additional Information and Resources on Investing in Baidu Stock
When determining whether Baidu Inc is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Baidu Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Baidu Inc Stock. Highlighted below are key reports to facilitate an investment decision about Baidu Inc Stock:Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Baidu Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.