Baidu Inc ADR (BIDU) is overvalued and Alphabet Inc (GOOG) is slightly undervalued.
Against our estimates of intrinsic value, GOOG trades at the wider discount: a margin of safety of +9%, against -26% for BIDU.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.1% (average of 2 methods) values the shares at $73.52; the price of $92.43 is 26% above that value, and 82% of that value comes from beyond year five.
Leak Score 0/100 on 2 of 12 signals
A 10.6x revenue multiple, adjusted for growth and margin, values the shares at $381.63; the price of $347.41 is 9% below that value.
Leak Score 58/100 on 10 of 12 signals
| Metric | BIDU | GOOG |
|---|---|---|
| Verdict | Overvalued | Slightly undervalued |
| Price | $92.43 | $347.41 |
| Intrinsic value | $73.52 | $381.63 |
| Margin of safety | -26% | +9% |
| Leak Score | 0/100 (2/12) | 58/100 (10/12) |
| Market cap | $25.5B | $4.28T |
| Revenue growth, 5 years | 3.0% | 17.2% |
| Operating margin | 7.0% | 34.0% |
| Net margin | -3.4% | 54.7% |
| Return on equity | -1.6% | 48.7% |
| Debt to equity | 0.42 | 0.18 |
| P/E | — | 17.4x |
| Forward P/E | 13.2x | 23.0x |
| P/B | 0.8x | 6.8x |
| Dividend yield | 1.9% | 0.2% |