PDD Holdings Inc. PDD
Composite 65/100; the shares have moved about 37% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Momentum ranks 16/100 — a strong mark against it.
Valuation ranks 93/100 — a strong point in its favour. Balance-sheet strength ranks 90/100 — a strong point in its favour. Quality ranks 65/100 — a moderate point in its favour.
Momentum ranks 16/100 — a strong mark against it. Growth ranks 45/100 — a slight mark against it.
What the company does PDD Holdings Inc. operates two global e-commerce platforms: Pinduoduo, a social commerce marketplace in China, and Temu, a cross-border discount retail platform. The group monetizes via transaction fees, advertising, and logistics services, targeting value-conscious consumers and merchants.
Key financials PDD’s profitability is strong: gross margin 56%, operating margin 18.4%, net margin 21.6%, and ROE 25.4%. Revenue grew 11% year-over-year, though EPS fell 14.9%. The balance sheet is pristine: debt/equity 0.01, net cash/EBITDA –4.44, and current ratio 2.54.
Stock health Momentum is weak: –10.47% over 3 months, –14.95% over 6 months, and –24.24% over 12 months. RSI(14) is 57.70, indicating neutral technicals. Strength score is 95.1, but momentum is just 18.6, highlighting valuation support with weak price action.
Price vs fair value The stock trades at a discount to both our fair-value estimate and analyst target. - Price is at a discount of 75.90% versus our fair-value estimate of 153.85 - Price is at a discount of 33.28% versus the 12-month target of 116.54 (analyst count 34.0) - Valuation percentile is 91.3/100, with Fwd P/E 8.53 and EV/EBITDA 3.48 - Recent headline notes PDD ADR outperforming the market (Zacks)
Looking forward Forward PEG of 0.99 and FCF yield of 57.6% suggest deep value, but growth is flagging (Growth score 32.0). Investors weigh Temu’s cross-border expansion against Pinduoduo’s China slowdown. Analysts see room for rerating if monetization improves.
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Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.