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?
- Long term revenue growth has been strong with a 5 year compounded annual growth of .
- The TTM operating margin was good at 15.5% for Baidu.
- Net margins stood at a healthy 45.8% (average) for Baidu in the Trailing Twelve Months.
- Baidu has an attractive ROIC (Return on Invested Capital) of 19.6%
- The LTM ROE of 40.9% for Baidu is attractive.
Should you sell BIDU stock?
- With a debt/equity ratio of 0.44, Baidu is highly leveraged in comparison to Computer and Technology peers.
- BIDU stock is trading at a PE ratio of 51.3, which is worse than the industry average multiple of 25.3.
- The company is trading at a price to sales multiple of 5.7, which is overvalued in comparison to the Internet Services industry average multiple of 2.4.