Baidu trading at discount to US competitor Alphabet for first time in 5-years
Sep 12, 2018
- Baidu (BIDU) is trading at a 10.62% discount to Alphabet Inc. (GOOGL) on an NTM P/E basis, marking the first time Baidu is at a discount to Alphabet since July 2013.
- On 08/01/18, Baidu’s NTM P/E dropped 10.21% from 23.18x to 20.80x.
- Consensus forecasts EPS growth of 16.05% per annum for Baidu while Alphabet's EPS is expected to grow 18.68% per annum.
- Baidu’s NTM P/E of 19.30x is its four-year low while Alphabet’s 21.35x is on par with its historical range.
- Despite trading at a discount, Baidu maintains a healthy return on equity of 17.10% compared to Alphabet’s 10.50%.
- Baidu’s EBITDA margin of 33.80% is also more attractive to Alphabet’s 30.80%.
- Baidu is rated as ‘attractive’ in our China All-Cap Global Top Picks.
- Alphabet is rated as ‘neutral’ in our US Large-Cap Global Top Picks and ‘attractive’ in our US Information Technology Global Top Picks.
Alphabet (GOOGL) vs. Baidu (BIDU) 4-Year NTM P/E
GOOGL/BIDU 4-Year NTM P/E Ratio