Buffett Brain · Research note
Score updated 5 Oct 2026
BIDU· Communication Services
Baidu
Baidu's negative ROIC and high P/E ratio indicate a lack of economic moat and financial health.
Buffett fit
Weak fit
Owner
17
Durability
41
Management
27
Price
20
Score updated 5 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Communication Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned Baidu 100%, we'd be concerned about its ability to generate sustainable returns.
The full reasoning comes with a free account.
Baidu's business faces significant challenges from technological shifts and intense competition in the Chinese internet market.
The full reasoning comes with a free account.
Baidu's management has not effectively compounded shareholder value. The share count has increased by 8.36% annually over the past five years, while yield is only 1.73%.
The full reasoning comes with a free account.
Baidu's current valuation is not attractive, with a of 847.9 and an yield of -5.48%.
The full reasoning comes with a free account.
Free account
Read the full Baidu analysis free
- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
3 full analyses a week · no card needed
For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Baidu operates in the growing Chinese internet market, providing potential for future growth.
- 2The company has a current ratio of 1.85, indicating short-term financial stability.
- 3Baidu's diverse business segments offer multiple revenue streams.
- 4Debt/Equity ratio of 0.35 suggests conservative .
Concerns
8- 1 of -1.1% indicates a lack of profitability and efficiency in capital use.
- 2 of -5.7% highlights ongoing operational challenges.
- 3 of 847.9 suggests extremely high market expectations not matched by earnings.
- 4Net debt/EBITDA of 4.36 indicates high relative to earnings.
Price history
$84.32-48.0%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Baidu, Inc. operates in two segments: Baidu Core and iQIYI. Baidu Core provides search-based and feed-based online marketing services, cloud services, and AI products. The iQIYI segment offers an online entertainment video platform. Despite a diverse revenue mix, the company struggles with profitability, as evidenced by a -5.7% .
How this analysis has moved
The call has held across 2 reviews.
Sep 27, 2026 → Oct 4, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Communication Services
Free weekly email
Liked the read on BIDU? Get the next ones on Monday.
Every Monday: the stocks most of the seven investors newly agree on. One email, unsubscribe any time.
Research, not investment advice.
See the Buffett analysis of Baidu
The score, the checklist and the full reasoning open with a free account. You get 3 full analyses a week, and this stock is the first one. No card needed.
Create a free account3 full analyses a week · no card needed
Already have an account? Sign in