PDD Holdings Valuation

PDD Stock  USD 104.94  2.99  2.93%   
At this time, the company appears to be undervalued. PDD Holdings holds a recent Real Value of $123.12 per share. The prevailing price of the company is $104.94. Our model determines the value of PDD Holdings from evaluating the company fundamentals such as Operating Margin of 0.23 %, profit margin of 0.24 %, and Return On Equity of 0.31 as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting PDD Holdings' valuation include:
Price Book
2.5148
Enterprise Value
82.5 B
Enterprise Value Ebitda
4.8765
Price Sales
0.3458
Forward PE
7.9428
Undervalued
Today
104.94
Please note that PDD Holdings' price fluctuation is very steady at this time. Calculation of the real value of PDD Holdings is based on 3 months time horizon. Increasing PDD Holdings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the PDD stock is determined by what a typical buyer is willing to pay for full or partial control of PDD Holdings. Since PDD Holdings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of PDD Stock. However, PDD Holdings' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  104.94 Real  123.12 Target  148.64 Hype  104.83 Naive  109.59
The real value of PDD Stock, also known as its intrinsic value, is the underlying worth of PDD Holdings Company, which is reflected in its stock price. It is based on PDD Holdings' financial performance, growth prospects, management team, or industry conditions. The intrinsic value of PDD Holdings' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
123.12
Real Value
124.99
Upside
Estimating the potential upside or downside of PDD Holdings helps investors to forecast how PDD stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of PDD Holdings more accurately as focusing exclusively on PDD Holdings' fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
18.2921.7330.75
Details
Hype
Prediction
LowEstimatedHigh
102.96104.83106.70
Details
Naive
Forecast
LowNext ValueHigh
107.72109.59111.46
Details
41 Analysts
Consensus
LowTarget PriceHigh
135.26148.64164.99
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use PDD Holdings' intrinsic value based on its ongoing forecasts of PDD Holdings' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against PDD Holdings' closest peers. If more than one evaluation category is relevant for PDD Holdings we suggest using both methods to arrive at a better estimate.

PDD Holdings Cash

69.75 Billion

PDD Revenue by Product

PDD Holdings Total Value Analysis

PDD Holdings is at this time forecasted to have company total value of 82.5 B with market capitalization of 144.73 B, debt of 10.61 B, and cash on hands of 119.38 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the PDD Holdings fundamentals before making security assessment based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
82.5 B
144.73 B
10.61 B
119.38 B

PDD Holdings Investor Information

About 33.0% of the company shares are owned by institutional investors. The book value of PDD Holdings was at this time reported as 40.49. The company has Price/Earnings To Growth (PEG) ratio of 1.06. PDD Holdings recorded earning per share (EPS) of 9.89. The entity had not issued any dividends in recent years. Based on the key indicators related to PDD Holdings' liquidity, profitability, solvency, and operating efficiency, PDD Holdings is performing exceptionally good at the moment. It has a great risk to report excellent financial results in March.
Current ValueLast YearChange From Last Year 10 Year Trend
Total Cash From Operating Activities147.2 B140.2 B
Sufficiently Up
Slightly volatile

PDD Holdings Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. PDD Holdings has an asset utilization ratio of 77.98 percent. This indicates that the Company is making $0.78 for each dollar of assets. An increasing asset utilization means that PDD Holdings is more efficient with each dollar of assets it utilizes for everyday operations.
 
Covid
 
Interest Hikes

PDD Holdings Profitability Analysis

Based on PDD Holdings' profitability indicators, PDD Holdings is performing exceptionally good at the moment. It has a great risk to showcase excellent profitability results in March. Profitability indicators assess PDD Holdings' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2016-12-31
Previous Quarter
30.8 B
Current Value
29.3 B
Quarterly Volatility
11.9 B
 
Covid
 
Interest Hikes
At present, PDD Holdings' Pretax Profit Margin is projected to increase slightly based on the last few years of reporting. The current year's Operating Profit Margin is expected to grow to 0.26, whereas Gross Profit Margin is forecasted to decline to 0.47.
For PDD Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PDD Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PDD Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PDD Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PDD Holdings over time as well as its relative position and ranking within its peers.

PDD Holdings Earnings per Share Projection vs Actual

The next projected EPS of PDD Holdings is estimated to be 21.7301 with future projections ranging from a low of 18.2925 to a high of 30.75. PDD Holdings' most recent 12-month trailing earnings per share (EPS TTM) is at 9.89. Please be aware that the consensus of earnings estimates for PDD Holdings is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Covid
 
Interest Hikes
PDD Holdings is projected to generate 21.7301 in earnings per share on the 31st of December 2026. PDD Holdings earnings estimates show analyst consensus about projected PDD Holdings EPS (Earning Per Share). It derives the highest and the lowest estimates based on PDD Holdings' historical volatility. Many public companies, such as PDD Holdings, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

PDD Holdings Earnings Estimation Breakdown

The calculation of PDD Holdings' earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of PDD Holdings is estimated to be 21.7301 with the future projection ranging from a low of 18.2925 to a high of 30.75. Please be aware that this consensus of annual earnings estimates for PDD Holdings is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
18.29
Lowest
Expected EPS
21.7301
30.75
Highest

PDD Holdings Earnings Projection Consensus

Suppose the current estimates of PDD Holdings' value are higher than the current market price of the PDD Holdings stock. In this case, investors may conclude that PDD Holdings is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and PDD Holdings' stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of December 2026Current EPS (TTM)
3961.39%
0.0
21.7301
9.89

PDD Holdings Ownership Allocation

PDD Holdings owns a total of 1.42 Billion outstanding shares. 30% of PDD Holdings outstanding shares are owned by third-party entities. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Thus, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change. Please note that no matter how many assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.

PDD Holdings Profitability Analysis

The company reported the last year's revenue of 393.84 B. Total Income to common stockholders was 112.43 B with profit before taxes, overhead, and interest of 237.1 B.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates PDD Holdings' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in PDD Holdings and how it compares across the competition.

About PDD Holdings Valuation

The stock valuation mechanism determines PDD Holdings' current worth on a weekly basis. Our valuation model uses a comparative analysis of PDD Holdings. We calculate exposure to PDD Holdings's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of PDD Holdings's related companies.
Last ReportedProjected for Next Year
Gross Profit275.9 B289.7 B
Pretax Profit Margin 0.30  0.32 
Operating Profit Margin 0.25  0.26 
Net Profit Margin 0.26  0.27 
Gross Profit Margin 0.55  0.47 

PDD Holdings Growth Indicators

Investing in growth stocks can be very risky. If the company such as PDD Holdings does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding1.5 B
Quarterly Earnings Growth Y O Y0.165
Forward Price Earnings7.9428

PDD Holdings Current Valuation Indicators

Valuation refers to the process of determining the present value of PDD Holdings and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value PDD we look at many different elements of the entity such as PDD's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as PDD Holdings, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use PDD Holdings' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes PDD Holdings' worth.

Complementary Tools for PDD Stock analysis

When running PDD Holdings' price analysis, check to measure PDD Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy PDD Holdings is operating at the current time. Most of PDD Holdings' value examination focuses on studying past and present price action to predict the probability of PDD Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PDD Holdings' price. Additionally, you may evaluate how the addition of PDD Holdings to your portfolios can decrease your overall portfolio volatility.
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