Group 2:

- Elfandari Dewi
- Fachri Bayu
- Fadhila Dhia Fialdi
- Febriandi Yudhistira
- Hanif Rahma Hakim
- Hu Binbing
- Ivory Rachmalia Beskarina
- Linggar Satrio Permadi
- Lydia Elvina
- Matteo Lelii
- Melisa
 ?

Group Argumentation

Most company valuations are a mixture of both real earnings and expectations of future earnings, not only based on
people’s expectations. Alibaba has a strong lock on the burgeoning Chinese B2B eCommerce market, and will likely
grow alongside the market. So there's a good reason to believe that Alibaba will continue to grow its revenue as long as
it is managed well instead of bubble burst.
 Group Argumentation

Moreover, the company already makes a healthy profit on its existing revenues,
compared to other competitors such as eBay or Amazon, which have massive
revenues but little to no profit.
 Group Argumentation

Investors supply equity capital, which entitles them to shares of stock and partial ownership in the company. A
company does not need to repay equity capital. Both types of debt & equity as capital present certain risks to a small
business.
 Group Argumentation

According to our group calculation, the DCF value is 80,910.71

To measure and analyze a bubble, determining DCF value as valuation is insufficient.
There are many aspects that can cause a burst, not only the DCF value. We should
also take a look at external factors which the group will present in the next two slides.
 Group Argumentation

They mentioned that it's overvalued but they didn’t provide a solid argument on that
matter just put some issues found on internet (simplywall.st) without ground analysis.
“Overvalued" is a relative word. Take a look on the next slide.
 Group Explanation

The result of the DCF

modeling is clear enough:
Alibaba shares have a
32% potential for further
growth at the most
conservative forecast
parameters.

Our group would like to

note that the DCF analysis
is not a silver bullet in the
investment practice.
 Group Argumentation

Their conclusion is rather contrary from their analysis of bubble suspicion. They didn’t provide a clear answer
for their own question. Our group conclude that the DCF calculation shouldn’t be the only metric when
researching a company. We suggest that there are two key factors, which are financial health and future
earnings. Aside from that, we also need to take a broader look at the external factors. The only slight concern
about Alibaba is that it seems to propagate a large amount of purchasing and distributing agents who pass
themselves off as the manufacturer. If they can ensure that the quality remains consistent and that clients get
the best experience from the platform, Alibaba will not have a bubble burst.