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?
- Revenue growth has been tremendous with a compounded annual growth of over the last 5 years.
- Baidu's average operating margin of 15.5% was exceptional.
- Net margins came in at average 45.8% for Baidu over the last twelve months.
- Baidu generates a high return on invested capital of 19.6%.
- The LTM ROE of 40.9% for Baidu is attractive.
Should you sell BIDU stock?
- Baidu is debt laden and has a high debt/equity ratio of 0.44.
- BIDU stock is trading at a PE ratio of 51.6, which is worse than the industry average multiple of 25.5.
- The company is trading at a price to sales multiple of 5.7, which is higher in comparison to the Internet Services industry average of 2.4, making BIDU stock expensive.