The Value of Baidu Inc. (BIDU) Underpriced by 13.7%?

    Publicly-traded company Baidu Inc. (NASDAQ:BIDU) had a closing price of $121.87 yesterday. Meanwhile, the average 12-month price target from Wall Street analysts is currently $141.22, this means that the stock is underpriced by 13.7%. In the past 52 weeks the company’s stock price has moved within the range of $93.39 to $196.02.

    This particular stock’s 5-day moving average is 110.31, its 20-day moving average is 106.04 and its 100-day moving average is 107.47. Baidu Inc. (BIDU) currently has 339.25M shares outstanding, which means that its market capitalization is $41.34B.

    The Details: Baidu Inc. (BIDU) Financial Health

    There are several indicators we can take into consideration when thinking about a stock’s financial health. For example, we can look at a company’s profit margin, which tells us how much of the company’s total sales revenue was kept in earnings. We calculate this figure by dividing net income by net sales revenue. BIDU currently has a profit margin of 15.50%.

    Looking at a company’s operating margin is also helpful. This number tells us how much profit is kept after considering depreciation and operating expenses. Baidu Inc. (BIDU) has an operating margin of 9.80%.

    Return on Assets, which is expressed as a percentage, tells us how well a public company is using its assets to turn a profit. The larger the percentage, the better it is At the moment, Baidu Inc. Return on Assets is 5.50%.

    What Does Wall Street Say about Company?

    When selecting potential stocks to buy, many investors want to find out what Wall Street professionals are thinking about the company beforehand – like what the average analyst rating is. At the moment, the average analyst rating for BIDU is Overweight. Out of 35 total analysts who were surveyed, 0 rated it a sell, 0 rated it a underweight, 3 rated it an overweight, 11 rated it hold, and 21 rated it a Buy.

    Three months ago, on the other hand, the average analyst rating for Baidu Inc. (BIDU) was a Overweight – from a survey of 38 analysts. Of the analysts who provided ratings, 15 rated the company a Hold, 0 rated it a Sell, 2 rated it an overweight, 0 rated it an underweight, and 21 rated it a Buy.

    Understanding Profitability at Baidu Inc. (BIDU)

    A good way of assessing a public company’s profitability is by looking at its Earnings per Share (EPS). In the most recent financial results released by Baidu Inc., for the quarter ending on 12/2019, the company posted EPS of 0.58. The average estimate of Wall Street analysts had projected 0.59.

    Wall Street analysts, on average, are forecasting the company’s EPS to be 1.15, compared to 1.96 reported in the same quarter last year. When it comes to net revenue, the average estimate from a total of 16 analysts is 3.88B – compared to 4.04B posted in the year-ago period.