Baidu, Inc.

Baidu provides internet search services in China. It operates through two segments: Baidu Core and iQIYI. The company offers various services including search, feed, health, maps, and online marketing. It also provides AI-based services such as ERNIE Bot and DuerOS. In addition, it offers cloud services, self-driving services, and an online entertainment service called iQIYI. Baidu has a strategic partnership with Zhejiang Geely Holding Group. The company was incorporated in 2000 and is headquartered in Beijing, China.

Overview

Sector

Internet Content

Target Price

8.2 USD

Current Price

86.0 USD

Potential

-91%

Strengths

The company has low debt. Net Debt to EBITDA Ratio is 0.91 and it is lower than the sector mean.
Strong EBITDA Margin of 64.78%.

Weaknesses

With a depreciation Potential of -90.50%, based on our fundamental analysis, it suggests the stock may be overvalued.
The company have lower returns than the sector in which it operates. ROIC (6.34%) is significantly lower than the sector mean (10.83%).
The Price to Free Cash Flow ratio (130.65) is significantly higher than the sector mean.

Key Financial Data

Indicator	Value
PER	71.3
EV/EBITDA	34.2
Price/Free Cash Flow'	130.7
ROIC	6.3%
Net Debt/EBITDA	0.9