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(Bloomberg) — The years-long rout in shares of Alibaba Group Holding Ltd. amid regulatory crackdowns and weak consumption has left the Chinese e-commerce giant trading at just half the valuation of venerable utility CLP Holdings Ltd.
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Alibaba’s valuation almost halved in the past year, after it was hit by sluggish domestic online sales, fierce competition and skepticism over its future as it scrapped plans to spin off its cloud business and changed leadership. Its Hong Kong-listed stock is now trading at just 7.6 times estimated earnings for the next 12 months, compared with more than 13 times for CLP.
Down 77% from its record high in 2020, Alibaba is also trading at about half the valuation for main rival Tencent Holdings Ltd., which has held up better thanks to more-resilient demand for its games business. Shares of CLP — which is more than 120 years old — have actually risen in the past year helped, by dividend payouts and cooling input fuel costs.
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