Alibaba Group Holding:Likely benefiting from improved disclosure

Valuation Methodology

    We adopt a SOTP valuation method for Alibaba Group. We value its mainbusiness at $217bn, or $84.60 per share, based on DCF valuation. We valuethe optionality in Ant Financial at $17bn, or $6.7bn per share. Our SOTPbasedTP of $91 implies 26x FY17F P/E.