One-glance verdict
Undervalued
$342.11 our estimate vs market $80.55
Wall Street consensus: $133.22 (-61.1% lower than our fair-value estimate)
76% below our estimate, below the bear case
Fundamentals snapshot
Baidu, Inc.
BIDU · NMS · Communication Services · Internet Content & Information
Current price
$80.55
52-week range
$75.80 - $165.30
Market cap
$27.42B
Balance sheet
Healthy
3.72x Stretched
Net cash $8.01B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 1.2% last year.
- Reward Free cash flow was positive in 9/10 years.
- Risk Operating margin compressed from 12.9% to 6.9% over 3 years.
- Risk Return on equity was -1.4% last year — the company lost money on shareholders' equity.
What this company does
Baidu, Inc.
Baidu is like China's Google, offering a big search engine and other internet services, but also a streaming platform similar to Netflix and developing AI technology. The money primarily comes from online advertising on its search engine and other platforms, similar to how Google makes money, and its future hinges on how well its AI and streaming businesses grow alongside its core search.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$1.79B
FY2025 Q4
$-2.16B
Revenue
$18.46B
Net income
$799.00M
Diluted EPS
—
Operating cash flow
$-431.00M
Free cash flow
$-2.16B
Fetching…
Sources
Revenue
$18.24B
Net income
$3.25B
Diluted EPS
—
Operating cash flow
$2.91B
Free cash flow
$1.79B
Fetching…
Sources
Is it cheap or expensive?
Fair value $342.11 vs current price $80.55
Wall Street consensus is the average analyst price target: $133.22 (-61.1% lower than our fair-value estimate).
Our most-likely fair value is $342.11 a share — about 324.7% above today's price of $80.55, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $8.0B - more cash than debt. Interest coverage 3.7x.
Net debt
$-8.01B
Interest coverage
3.72x
Baidu, Inc.'s profit covers its interest bill about 3.7 times over. which is weaker than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
BIDU
BASELINE
Baidu, Inc.
Total debt $16.95B Interest coverage 3.72x This is the baseline the peer rows are being compared against.
Total debt $150.33B Interest coverage 175.32x +4,608% vs BIDU Carries about 47.1x more debt cushion than BIDU.
Total debt $40.01B Interest coverage 6.09x +64% vs BIDU Carries about 1.6x more debt cushion than BIDU.
Total debt $70.82B Interest coverage 18.49x +396% vs BIDU Carries about 5.0x more debt cushion than BIDU.
Total debt $304.84B Interest coverage 35.17x +844% vs BIDU Carries about 9.4x more debt cushion than BIDU.
Total debt $114.84B Interest coverage 71.48x +1,820% vs BIDU Carries about 19.2x more debt cushion than BIDU.
What you should know
The case for and against BIDU
2 Rewards
2 Risks
Rewards
-
Revenue grew 1.2% last year.
-
Free cash flow was positive in 9/10 years.
Risks
-
Operating margin compressed from 12.9% to 6.9% over 3 years.
-
Return on equity was -1.4% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
11.85x
P/B
0.67x
P/S
0.22x
EV/EBITDA
-0.12x
PEG ratio
0.72x
Profitability
How much profit each dollar creates
Gross margin
40.9%
Operating margin
6.9%
Net margin
-2.9%
ROE
-1.4%
ROA
1.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.38x
Current ratio
2.33x
Quick ratio
2.06x
Total debt
$16.95B
Total cash
$24.95B
Growth
How the business has been compounding
Revenue TTM
$73.58B
Revenue 5Y CAGR
-1.4%
EPS TTM
-2.24
EPS 5Y CAGR
-16.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$11.43B
Free CF TTM
$-2.16B
FCF margin
-2.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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