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Legal factors: legal factors bind the operations or activities of the business so as to execute them within the legal framework framed by the government or the respective authority. These rights are framed so as to protect the customers from the bad practices of the organisations which adversely affect them. Alibaba is constantly keeping a check over its operations so as to ensure that the operations of the business are within the legal framework of the country. Legal factors include the government rules and regulations. Internet rules, privacy acts, customer rights and Internet protocol protection rights and taxes (Alibaba group, 2015).Rules have been framed for the companies operating their activities over internet so as to make sure that the companies are operating within the legal framework.
The share price of the company, Alibaba Group Holding Limited is US$ 106.00 as on 7th October 2016 on NYSE. The 52 week low of the stock is $59.25 while the 52 week high is $109.87. Market capitalisation is of $267.19 billion and the 1 year change in the stock prices of Alibaba is around 60%.
The growth rates year on year of Alibaba Group Holding Limited increased and the earnings per share (EPS) increased 188.75%. The growth rates are in CNY (Chinese Yuan Renminbi). The annualised growth rates of Alibaba Group Holding Limited of five years are the highest in the industry.
P/E Ratio is the Price Earning ration which is calculated to measure the value of the company by using the current price of shares and earnings per share. The current stock price is divided by the earning per stock which provides market value of the share (Clicks to bricks; Alibaba, 2015).
The P/E ratio of Alibaba is expected to be 65.62 in year 2016 and the estimated P/E ratio in 2019 is 70.37. P/E ratio helps in measuring the value of the share of the firm. When the P/E ratio of any company is high say above 60, it means that the investors are excited about the growth of the company (Miglani, 2016).

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