PDD Holdings Inc. (PDD) is a publicly traded company in the Consumer Cyclical — Specialty Retail industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
PDD Holdings, Inc. is a multinational commerce group that owns and operates a portfolio of businesses. The company aims to bring more businesses and people into the digital economy so that local communities and small businesses can benefit from increased productivity and new opportunities. It has built a network of sourcing, logistics, and fulfillment capabilities, that support its underlying businesses.
Is PDD Holdings Inc. stock overvalued or undervalued in 2026?
PDD Holdings Inc. (PDD) trades at 7.7× earnings (P/E), below the median of the 209 consumer cyclicals companies over $2bn in Kaplio's universe. At its sector median (17.9×) $182 (+131 %).
Kaplio overview: PDD Holdings Inc.
Market cap $112B · 52 weeks $73 – $138 (44 % below the high) · P/E 7.7× · 2027 expected P/E 6.4× · Dividend none · Next earnings November 18, 2026 · expected EPS $2.77 · Closing price, Oct 28 · accounts published Aug 24.
- Valuation: P/E 7.7× (cheap).
- Business: 5-year ROIC 19.4 % (solid).
- Balance sheet: Net cash/EBITDA 1.4× (solid).
- Earnings: 4 of 8 (uneven).
What would it be worth at its usual multiples?
At its sector median (17.9×) $182 (+131 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in consumer cyclicals: 6 of 7 pass
- P/E read in reverse (cyclicals) 7.7×, fails.
- 5y avg operating margin 20.7 %, passes.
- 5y avg ROIC 19.4 %, passes.
- Net debt / EBITDA −1.4×, passes.
- Current Ratio 2.62, passes.
- Altman Z-Score 5.5, passes.
- EV/Sales vs history 2.2×, passes.
Against its peers (reference peers) — PDD Holdings Inc.: P/E 7.8×; EV/EBITDA 4.5×; ROIC 17.5 %; $112B. MercadoLibre, Inc. (P/E 49.3×; EV/EBITDA 27.8×; ROIC 11.4 %; $91.8B), eBay Inc. (P/E 24.4×; EV/EBITDA 18.3×; ROIC 15.5 %; $52.5B), Alibaba Group Holding Limited (P/E 21.7×; EV/EBITDA 11.2×; ROIC 2.0 %; $248B).
Expensive or cheap against its last 5 years?
P/E at each close: today 7.8× · median 15.7× · minimum 7.7× · maximum 33.0× · cheap below 10.3× · expensive above 23.3×. It has been cheaper than today only 0% of the time over its last 5 years.
Investor methods verdict
Would Buffett approve PDD today?
The Buffett Method would not approve PDD today: it fails its quality rules. Business quality: 53 out of 100 (price not included). Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Would Peter Lynch approve PDD today?
The Lynch Method would wait for a better price for PDD. Business quality: 100 out of 100 (price not included). Lynch classifies it as a fast grower. Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Profitability
| Return on Equity | 21.97% |
| Return on Invested Capital | 17.46% |
| Return on Assets | 13.88% |
| Gross Margin | 56.32% |
| Operating Margin | 21.86% |
| Net Margin | 20.43% |
Financial Health
| Debt / Equity | 0.01 |
| Current Ratio | 2.62 |
| Piotroski F-Score | 4 |
| Altman Z-Score | 5.48 |
Price Performance
| 1 month | -0.05% |
| 3 months | -12.53% |
| Year-to-date | -31.68% |
| 1 year | -43.90% |
| 3 years | -25.70% |
| 5 years | -12.88% |
Related companies: CPNG · AMZN · MELI · EBAY · JD · BABA · SE · VIPS
Explore sector: Consumer Cyclical · Specialty Retail
More sections of PDD: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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