In-depth review of BIDU

This is a more in-depth review of earnings and free cash flow on Baidu, company 10 of the generic stock screener. With that said and with the final assumptions set, remember that everything I say will be of my opinion and NOT financial advice. It is up to the viewer to do their own research in conjunction with this review to make their own decision. My hope is that the viewer gets an idea of what to look at in a company's 20-F and quarterly report.

Everything I say will be of my opinion and NOT financial advice. I am an actuary, where risk management is in my blood, so my take on value investing is a mixture of all the greats: Benjamin Graham, Warren Buffett, Mohnish Pabrai, etc.

[deicomic]

We know AI is a bubble when Chinese AI doesn't pump

[Vonalline]

Hi there, I believe the DCF you did is way too simple, a multiples approach would have suited better if you want to keep it that simple.

Forecasting 7% (historical 10y average around 13%) revenue growth /annum great, even lower the FCF margin a bit from 19-20% to 15%. Forecast this 5y into the future and give a reasonable FCF yield. The current FCF multiple is around 6.5x, historically it was around 20 (last 6y average).... Let's settle with 15x FCF multiple--> with these not-too-aggressive expectations you get 50% upside and a kind of floor value (tangible book value) at 85 USD.

Michael Burry has just included BIDU t the portfolio according to the 13F....it is worth investigating why...

[YeisonLopez-pl]

Does the current geopolitical environment in China stop you from investing In China? And where do you think they are going?