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PDD Holdings Inc. (PDD)

POSITIVE
Consumer CyclicalInternet RetailIreland

Price

$88.56

Market Cap

$126.06B

Fundamental

77

Technical

60

Composite

72

AI Analysis

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Overview

PDD Holdings Inc., a multinational commerce group that owns and operates a portfolio of businesses. The company operates Pinduoduo platform, which provides various product categories and interactive shopping experiences; and Temu, an online platform, which enables merchants to streamline their manufacturing and commercial operations. The company was formerly known as Pinduoduo Inc. and changed its name to PDD Holdings Inc. in February 2023. PDD Holdings Inc. was incorporated in 2015 and is based in Dublin, Ireland.

Balance Sheet & Liquidity

Revenue

$431.85B

Net Income

$99.36B

Free Cash Flow

$71.64B

Total Equity

$63.38B

Total Liabilities

$5.12B

Current Ratio

2.54

Interest Coverage

-

Debt/EBITDA

0.05

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Fair Value Estimation

Undervalued

Fair Value

$503.41

Current Price

$88.56

Margin of Safety

+82.4%

Fair Value Range

$327.21 - $679.60

Estimation Methods

Analyst Target:$116.47
DCF:$1288.82
PE-based:$74.05
Graham Growth:$155.15
EPV:$161.10
Analyst Consensus:Buy (25B / 14H / 2S)
Last Earnings Surprise:-43.39%

Valuation Metrics

P/E Ratio

9.29

ROE

25.4%

P/B Ratio

1.99

P/FCF

1.76

Gross Margin

56.0%

ROIC

94.0%

Value Creation (Economic Moat)

ROIC

94.0%

WACC

7.7%

ROIC − WACC

+86.3 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (14)

  • Price CAGR 18.72%
  • ROIC 94.0%
  • Gross Margin 56.0%
  • P/FCF 1.76
  • P/B Ratio 1.99
  • Debt/Equity ratio
  • Positive Free Cash Flow
  • Current Ratio
  • Debt/EBITDA
  • DCF valuation (Undervalued)
  • ROE 24.1%
  • Revenue Growth 5Y 48.6%
  • Analyst Consensus 61% Buy
  • Earnings Quality (OCF/NI) 1.09

Failed (4)

  • CapEx intensity
  • Earnings Surprise avg 0.9%
  • Net Margin Trend 23.0% vs 28.5%
  • Piotroski F-Score 2/9

Unavailable (9)

  • EPS data insufficient
  • Dividend Payout NaN%
  • Operating Margin NaN%
  • Interest Coverage
  • Return on Tangible Assets
  • Low reliance on intangibles
  • Price below Graham Number
  • PEG Ratio (need PE > 0 and growth > 0)
  • Share Dilution (missing shares data)

Price Chart

Technical Indicators

RSI (14)

60.12

SMA 50

$84.14

SMA 200

$103.82

MACD

0.56

Volatility

3.0%

Momentum (12m)

-21.9%

RSI 60.1, SMA trend bearish, momentum -21.9%.

Piotroski F-Score

2/9

Serious financial concerns

score
criteria

Earnings Quality

1.09

High quality: earnings backed by cash

Share Dilution

-

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Mr. Lei ChenGeneral Counsel, Co-CEO & Co-Chairman of the Board45
Mr. Jiazhen ZhaoCo-CEO & Co-Chairman of the Board41
Ms. Jun LiuVice President of Finance42
Mr. Junyun XiaoSenior Vice President of Operation45
Mr. Zhenwei ZhengSenior Vice President of Product Development41
Mr. Mi WangSenior Vice President of Engineering-
David LiuVice President of Strategy-
Peng ChengIR Director-

Latest News

Recent headlines for PDD, sourced from Markets Gazette.

  • 6/18/2026POSITIVE
    Miduoduo Files For Hong Kong Listing; TikTok Tie-up, Southeast Asia Focus May Boost IPO prospects

    Pinduoduo, a leading Chinese e-commerce platform, has filed for a listing in Hong Kong. This move is strategically aimed at expanding its international presence, with a particular focus on Southeast Asia. The company's potential tie-up with TikTok is also being highlighted as a significant factor that could boost its IPO prospects. For investors, this indicates Pinduoduo's ambition to diversify its revenue streams and tap into new high-growth markets beyond China, potentially leading to increased market share and valuation.

  • 5/27/2026NEUTRAL
    PDD Holdings Q1 2026 Earnings Call: Complete Transcript

    PDD Holdings Inc. has released its Q1 2026 Earnings Call Transcript. The document provides a detailed account of the company's financial performance, strategic initiatives, and outlook for the upcoming periods. While the transcript itself is informational, it does not contain forward-looking statements or specific financial results that would allow for an immediate assessment of its market impact. Investors are advised to review the transcript in conjunction with the official earnings release for a comprehensive understanding of PDD Holdings' financial health and future prospects.

  • 3/25/2026NEGATIVE
    Temu parent’s stock drops as end of ‘de minimis’ import rule comes at a cost

    PDD Holdings, the parent company of e-commerce giant Temu, saw its stock price decline following a missed earnings expectation. The company's financial performance was impacted by the impending end of the 'de minimis' import rule, a policy that allowed duty-free imports for low-value shipments. This change is expected to increase operational costs for Temu, potentially affecting its competitive pricing strategy and profitability. Investors are closely monitoring the company's ability to adapt to these new trade regulations and maintain its growth trajectory.

via Markets Gazette

Disclaimer

This platform is for educational purposes only. It does not provide financial, investment, or trading advice. All scores, valuations, and signals are based on automated analysis of publicly available data that may be incomplete or inaccurate. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

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