Baidu Stock Analysis (NASDAQ:BIDU)
Baidu Analysis Video
View Baidu stock analysis video. This is our BIDU analyst opinion covering the buy and sell arguments for BIDU stock.
Baidu Inc (ADR) Stock Rating (3.5/5)
Our Baidu stock opinion is based on fundamentals of the company. This Baidu stock analysis is based on latest Q3 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy BIDU stock?
- The company saw a significant growth in revenue with a 5 year CAGR of .
- Baidu's average operating margin of 15.5% was exceptional.
- Net margins stood at a healthy 45.8% (average) for Baidu in the Trailing Twelve Months.
- Baidu's return on invested capital of 19.6% is good.
- Baidu has a good Return On Equity (ROE) of 40.9%.
Should you sell BIDU stock?
- With a debt/equity ratio of 0.44, Baidu is highly leveraged in comparison to Computer and Technology peers.
- Trading at a PE ratio of 54, BIDU stock is overvalued in comparison to industry average multiple of 25.5.
- The company is trading at a price to sales multiple of 6, which is higher in comparison to the Internet Services industry average of 2.6, making BIDU stock expensive.