Morningstar

PDD Holdings Inc ADR PDD

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Stock XNAS Rating as of
$85.07 −0.81 (0.94%)
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As of Delayed Price Pre-Open: $84.21 −0.85

Company Report

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PDD's Temu Business Value Is Not Priced In

Chelsey Tam

PDD Holding is the second-largest e-commerce platform in China by gross merchandise volume in 2025, by our estimate. PDD is a social e-commerce platform that encourages users to enjoy lower prices by teaming up to make purchases. Easier sharing of PDD deals with social contacts through Tencent’s social network leads to lower traffic acquisition costs versus peers. The firm focused on low-tier cities and white-label merchants, followed by the CNY 10 billion program launched in 2019 to subsidize consumers for higher-priced products such as Moutai, Apple iPhones, and agricultural products. PDD aims to offer good value across various categories and price points. To increase average revenue per user, PDD uses subsidies to induce consumers to make purchases in categories they haven’t purchased in before.

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Price vs Fair Value

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PDD is trading at a 144% premium.
Price
$85.07
Fair Value
$418.00
Uncertainty
Very High
1-Star Price
$498.43
5-Star Price
$47.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Temu might break even faster than anticipated while maintaining an above-industry growth rate.

Bears

If Temu loses its growth momentum faster than expected due to competition, it could lead to slow revenue growth for PDD.

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News

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Trading Information

Previous Close Price
$85.88
Day Range
$84.97–86.60
52-Week Range
$81.56–139.41
Bid/Ask
$84.17 / $84.33
Shares Outstanding
1.42B
Market Cap
$121.09B
Volume/Avg
125,779 / 8M

Key Statistics

Price/Earnings (Normalized)
8.59
Price/Sales
2.02
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
—

Company Profile

PDD Holdings operates commerce businesses globally. Its main operations are Pinduoduo, a social commerce platform in China, and Temu, a global e-commerce marketplace. PDD also has a community group purchase business in China. PDD has built a network of sourcing, logistics, and fulfillment capabilities that support its underlying businesses. PDD has also started its first-party brand business for global markets.
Sector
Consumer Cyclical
Industry
Internet Retail
Stock Style Box
—
Total Number of Employees
25,474
Website
https://www.pddholdings.com

Competitors

Valuation

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Metric
PDD
03690
BABA
Price/Earnings (Normalized)
 8.5913.0832.06
Price/Book Value
 1.982.901.83
Price/Sales
 2.021.232.02
Price/Cash Flow
 8.30—20.93
Price/Earnings
PDD
03690
BABA

Financial Strength

Metric
PDD
03690
BABA
Quick Ratio
 2.131.571.05
Current Ratio
 2.541.821.28
Interest Coverage
 —−13.245.28
Quick Ratio
PDD
03690
BABA

Profitability

Metric
PDD
03690
BABA
Return on Assets (Normalized)
 16.05%−5.59%3.46%
Return on Equity (Normalized)
 24.91%−11.01%6.25%
Return on Invested Capital (Normalized)
 19.21%−7.96%0.35%
Return on Assets
PDD
03690
BABA

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