Markets BABA

This Global Tech Titan Is Wildly Undervalued

Imagine if I told you there's a global technology company that has captured huge swaths of e-commerce in the world's most populous nation? That the company produced gobs of free cash flow and had a stellar balance sheet? That the company was growing sales by over 30%? And then, I told you that you can buy shares of the company for less than 15 times free cash flow? You'd probably say such value stocks don't exist in today's market.

And usually, you wouldn't be wrong. But that's not the case with Alibaba Group Holding (NYSE: BABA). The Chinese tech giant seems like a screaming buy on the surface. In fact, Warren Buffett's right-hand man, Charlie Munger, just doubled his position in the company. That might be enough to convince you to buy shares in the company. But in this Jan. 24 video from the YouTube Channel of Motley Fool contributors Brian Feroldi and Brian Stoffel, you'll find out why -- despite the stellar scores Alibaba gets on their investing frameworks -- neither will be buying shares anytime soon.

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Brian Feroldi has no position in any of the stocks mentioned. Brian Stoffel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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