Based on the latest data from August 2025, Alibaba (BABA) is trading at $135.00, positioning the stock in the "Value" zone between the 11.9x and 34.6x PE multiples. Specifically, the stock price of $135.00 sits comfortably above the lower PE boundary of $82.67 (11.9 times PE) but well below the next threshold of $239.71 (34.6 times PE). This valuation level suggests the stock has moved out of the severely undervalued territory but remains within an attractive investment range for value-oriented investors. The historical trend reveals a dramatic valuation journey for BABA over the past five years. The stock experienced peak valuations during 2020-2021, with prices reaching as high as $288 in October 2020, trading well into the "Fair" valuation zone between 34.6x and 57.3x PE multiples. However, a severe correction followed, with the stock plummeting to extreme lows in 2022-2024, frequently trading in the "Undervalued" zone below 11.9x PE. The most distressed period occurred from late 2022 through early 2024, when prices dropped as low as $69-70, representing significant undervaluation relative to historical PE ranges. The recent recovery from February 2025 onwards, climbing from around $85 to the current $135 level, indicates a potential valuation normalization as the stock transitions from the undervalued territory back into the value investment range, suggesting improved market sentiment and possibly stronger fundamental prospects.