Baidu Valuation

Q: What is the Fair Price of BIDUD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BIDUD ($8.1) is trading below our estimate of [[fair value]] ($16.96)

Is BIDUD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BIDUD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BIDUD ($8.1) is trading below our estimate of fair value ($16.96)

Significantly Below Fair Value: BIDUD is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BIDUD?

Key metric: As BIDUD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BIDUD. This is calculated by dividing BIDUD's market cap by their current earnings.
What is BIDUD's PE Ratio?
PE Ratio	11x
Earnings	CN¥19.50b
Market Cap	CN¥214.46b

BIDUD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.2x
Enterprise Value/EBITDA	4.4x
PEG Ratio	1.5x

Price to Earnings Ratio vs Peers

How does BIDUD's PE Ratio compare to its peers?

The above table shows the PE ratio for BIDUD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	59.6x
1024 Kuaishou Technology	14.8x	18.7%	HK$221.6b
REA REA Group	107.8x	17.6%	AU$32.7b
PINS Pinterest	88.4x	34.4%	US$19.1b
4689 LY	27.2x	12.5%	JP¥2.9t
BIDUD Baidu	11x	7.2%	US$29.7b

Price-To-Earnings vs Peers: BIDUD is good value based on its Price-To-Earnings Ratio (11x) compared to the peer average (59.6x).

Price to Earnings Ratio vs Industry

How does BIDUD's PE Ratio compare vs other companies in the Global Interactive Media and Services Industry?

4 Companies	Price / Earnings	Estimated Growth	Market Cap

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: BIDUD is good value based on its Price-To-Earnings Ratio (11x) compared to the Global Interactive Media and Services industry average (20.9x).

Price to Earnings Ratio vs Fair Ratio

What is BIDUD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BIDUD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BIDUD's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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