How low can you go? That's the question some (NYSE: BABA) investors might be asking as the stock slips close to its lowest-ever valuation. Alibaba's price-to-sales (P/S) ratio today stands at 1.5, just a fraction of its five-year average of 5.1. Similarly, its price-to-earnings (P/E) ratio is 10.3 vs. a five-year average of about 33.

Bargain hunters are sniffling around for value, but it's not a sure thing. A stock could stay cheap forever unless the company does the right thing to turn around the ship. Fortunately, it looks like Alibaba has a clear plan to unlock shareholder value.

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Source Fool.com