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.
- LTM Net margins were good at 45.8% for Baidu.
- 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.
- Trading at a PE ratio of 54.1, BIDU stock is overvalued in comparison to industry average multiple of 25.9.
- The company is trading at a price to sales multiple of 6, which is overvalued in comparison to the Internet Services industry average multiple of 2.6.