PDD Holdings Inc
PDD · NASDAQ · Internet Retail
PDD Holdings Inc. is a multinational commerce group best known for operating Pinduoduo in China and Temu internationally.
Current price
$81.67
▼ −$0.29 (0.35%) today
Share price
Live market dataET&A View
Last reviewed 16 September 2026
ET&A sees significant upside from the current price with an attractive risk/reward profile.
PDD Holdings combines one of China's strongest value-oriented e-commerce platforms with Temu's substantial international growth opportunity, while an unusually large cash position provides considerable financial resilience.
Why we like it
- Sales are growing quickly (+10% a year).
- Profits are growing fast (−13%).
- Holds more cash than debt.
What worries us
- The share price has been weak recently.
Business Health
Is the business financially healthy?
Yes — very healthy
Revenue, earnings, margins, cash generation and the balance sheet stand out.
Overall
- Growth Excellent
Revenue
CN¥450.8bn · ↑ +10% last year
- Growth Excellent
Earnings
CN¥92.1bn · ↓ −13% last year
- Strong
Margins
Keeps 25% of sales as operating profit
- Excellent
Cash generation
CN¥105.8bn spare cash a year · 23% of sales
- Excellent
Balance sheet
More cash than debt
Investor View
More on PDD Holdings Inc
Open a section for the detail behind the quick view.
Our full viewET&A's complete thesis — why we hold the view we do.Members
PDD Holdings combines one of China's strongest value-oriented e-commerce platforms with Temu's substantial international growth opportunity, while an unusually large cash position provides considerable financial…
The complete ET&A view
See our full reasoning, what could drive the shares higher or go wrong, our Fair Value and Preferred Entry, and how our view has changed.
- Our View in full
- What could drive it higher / go wrong
- Fair Value & Preferred Entry
- How our view has changed
What could drive it higher — and what could go wrongThe catalysts and risks we are watching.Members
Valuation discussionWhere today's price sits, and how it compares with the company's own history and its peers.Members
Financial and earnings trendsSales, margins, profit, earnings per share and cash, year by year.
Reported annual results, newest first · Market data. “Growth” is the change in sales on the year before.
| Year | Revenue | Growth | Operating margin | Net income | EPS | Free cash flow |
|---|---|---|---|---|---|---|
| FY2025 | CN¥431.8bn | +9.7% | 21.6% | CN¥97.8bn | CN¥67.04 | CN¥105.8bn |
| FY2024 | CN¥393.8bn | +59.0% | 27.5% | CN¥112.4bn | CN¥76.00 | CN¥121.0bn |
| FY2023 | CN¥247.6bn | +89.7% | 23.7% | CN¥60.0bn | CN¥41.16 | CN¥93.6bn |
| FY2022 | CN¥130.6bn | — | 23.3% | CN¥31.5bn | CN¥21.92 | CN¥47.9bn |
Who it suitsStrategy suitability and investment style.
Long-term growth investors
Also suits: Adventurous investors comfortable with big swings
How it compares with peersOther companies we cover in Internet Retail.
- Alibaba Group Holding LtdBABA
ET&A sees significant upside from the current price with an attractive risk/reward profile.
- MeituanHKG:3690
ET&A sees significant upside from the current price with an attractive risk/reward profile.
- JD.com IncHKG:9618
ET&A sees significant upside from the current price with an attractive risk/reward profile.
Compare PDD Holdings Inc with any company → The model’s own peer calculations are in the Research View.
What the company doesThe full company profile.
PDD Holdings Inc. is a multinational commerce group best known for operating Pinduoduo in China and Temu internationally. The company’s platforms connect consumers and merchants through value-focused online shopping, marketplace services, digital advertising, transaction services, and supply-chain support, giving it a major role in both Chinese e-commerce and cross-border digital retail.
PDD’s strength comes from its large user base, discount-led positioning, merchant network, data-driven marketplace model, and growing international reach through Temu. Its business is closely tied to online consumer spending, value-for-money retail, social commerce, digital advertising, merchant services, and global cross-border e-commerce. As consumers continue to seek lower prices and more direct access to manufacturers and sellers, PDD remains one of the most important companies in China’s internet sector and the wider global e-commerce market.
Internet Retail · China
Research ViewOpen the full researchThe full researchFull financial statements, valuation multiples, historical data, forecasts, methodology, scoring calculations and the valuation model.OpenClose
For detailed analysis. Each section opens on its own.
Financial statementsEvery published figure with its source, the market snapshot and connected sheets.
Income
- Revenue
- CN¥450.8bnMarket data
- Gross profit
- CN¥253.9bnMarket data
- EBITDA
- CN¥99.1bnMarket data
- Operating profit (EBIT)
- CN¥93.1bnMarket data
- Net income
- CN¥92.1bnMarket data
- Earnings per share (EPS)
- CN¥8.89Market data
Growth
- Revenue growth, latest year
- Good9.7%Calculated
- Revenue growth, 3-year average
- Excellent49.0%Calculated
- Earnings growth, latest year
- Weak−13.0%Calculated
- Earnings growth, 3-year average
- Excellent45.8%Calculated
- Revenue growth, latest quarter vs a year earlier
- 8.1%Market data
- Earnings growth, latest quarter vs a year earlier
- −11.2%Market data
Margins & returns
- Gross margin
- Strong56.3%Market data
- EBITDA margin
- 22.0%Market data
- Operating margin
- Strong24.7%Market data
- Net margin
- Strong20.4%Market data
- Return on equity (ROE)
- Strong22.7%Market data
- Return on assets (ROA)
- 10.0%Market data
Cash flow
- Operating cash flow
- CN¥111.9bnMarket data
- Free cash flow
- CN¥105.8bnMarket data
- Free-cash-flow margin
- Excellent23.5%Calculated
- Free cash flow ÷ net income
- 1.1×Calculated
Balance sheet
- Cash
- CN¥456.4bnMarket data
- Total debt
- CN¥4.8bnMarket data
- Net cash (more cash than debt)
- CN¥451.6bnMarket data
- Net debt ÷ EBITDA
- Excellent−4.6×Calculated
- Debt ÷ equity
- 0.0×Market data
- Current ratio
- 2.6×Market data
Shares & dividends
- Shares outstanding
- 1.42bnMarket data
- Market capitalisation
- CN¥115.9bnMarket data
- Dividend per share
- CN¥0.00Market data
- Dividend yield
- Weak0.0%Market data
- Payout ratio
- 0.0%Market data
- Market data — the live feed (Yahoo Finance)
- Calculated — worked out by ET&A from the figures shown, using the formulas in our methodology
Other published figures
- Price / Sales
- Members
- EV / EBITDA
- Members
- Price / Book
- Members
- Forward P/E
- Members
Market data
LiveAs of 14 October 2026
- P/E Ratio
- 9.16x
Valuation multiplesP/E, forward P/E, EV/EBITDA, Price/Sales and FCF yield — today and at Fair Value.Members
Standard ways of comparing the share price with the company’s earnings, sales and cash. Tap the “i” for what each one means.
| Measure | Today | Source |
|---|---|---|
| P/E | Members | |
| Forward P/E | Members | |
| EV/EBITDA | Members | |
| Price/Sales | Members | |
| FCF Yield | Members |
Valuation ratios are part of ET&A membership.
Other published measures
- Price / Book
- Members
Historical dataValuation history, how our view has changed, and the share-price history.
Share-price history
Use the 5Y and Max ranges on the price chart at the top of the page.
ForecastsWhat analysts expect — market consensus, not ET&A estimates.
Forecasts
- Forward EPS (next year, consensus)
- CN¥12.34Market data
- Expected EPS growth, next year
- Weak−5.3%Market data
- Expected revenue growth, next year
- 7.9%Market data
Forecasts are market consensus or calculated from forward EPS — not ET&A estimates, and they can be wrong.
MethodologyHow ET&A values a company and reaches a view.
How we value PDD Holdings Inc
- 1. The right method for the business. Each business is valued on the method that suits its economics — earnings for most companies, book value and returns for banks and insurers, cash flows or dividends where earnings mislead.
- 2. What the business deserves. ET&A builds a fair multiple from the company's own quality, sustainable growth, earnings predictability and risk. History, peers and the market are checked against it, but they don't set it.
- 3. Fair Value. The earnings (or other basis) per share multiplied by that fair multiple, cross-checked against independent methods.
- 4. Preferred Entry. A price below Fair Value that leaves room for the return ET&A requires for the company's risk.
- 5. Is it expensive? Today’s price is placed on ET&A’s Valuation Attractiveness scale — the same measure the ET&A Score uses. Cheap is the Preferred Entry; above Fair Value the shares are Expensive, and Very Expensive once they are more than 25% above it.
Powered by the ET&A Valuation FrameworkHow Fair Value & Preferred Entry work →
Read the full ET&A methodology →How we reach a view
The ET&A View combines our assessment of the business with where today’s price sits against our Preferred Entry and Fair Value. It is a considered judgement, not a mechanical score.
- Business quality
- Financial performance
- Growth outlook
- Debt and financial strength
- Valuation
- Risk
- What could drive it higher
- Buy
- ET&A sees significant upside from the current price with an attractive risk/reward profile.
- Accumulate
- ET&A likes the company but would prefer investors to build exposure gradually.
- Hold
- ET&A sees limited reason to buy aggressively or sell at the current price.
- Reduce
- ET&A believes the current valuation or risk profile makes a smaller position more appropriate.
- Sell
- ET&A believes the downside risk materially outweighs the potential return at the current price.
ET&A Score: ET&A's overall assessment of business quality, valuation, growth and risk, out of 10. It weighs business quality, financial strength, growth, valuation, risk, future prospects.
Powered by the ET&A Company Assessment FrameworkSee the full framework →
Scoring calculationsBehind the ET&A Score and the Business Health ratings.
Behind the ET&A Score
The automatic, rules-based scores that feed our research. The ET&A Score blends these with our own analysis of the business and its value. How the framework works →
ET&A Quant Score
Profitable · Strong balance sheet · Weak
Context — not part of the score
- Valuation multiplesInexpensive
- Share-price steadinessHigh volatility
- IncomeNo dividend
Valuation and share-price swings describe the shares, not the company, so they are judged in the ET&A Score and View instead.
- Annualised volatility
- Members
- Max drawdown (1y)
- Members
- 12-month return
- Members
- 3-month return
- Members
- P/E
- Members
- Price / Sales
- Members
- EBITDA margin
- Members
- Net debt / EBITDA
- Members
- Dividend yield
- Members
Based on the factors that could be measured (45% of the model).
Business Health ratings
Each area is scored from 0 to 10 on ET&A’s methodology scales — the same ones our research uses — then given a word: Excellent from 8.5, Strong from 7, Good from 5.5, Average from 4.5, Below Average from 3, Weak below 3. The overall answer is the average of the areas we could rate (at least three); the dividend isn’t part of it.
| Area | Based on | Score | Rating |
|---|---|---|---|
| Revenue |
Rated on 3-year average revenue growth, on ET&A's growth scale. | 10.0 / 10 | Excellent |
| Earnings |
Rated on 3-year average earnings growth, on ET&A's growth scale. | 10.0 / 10 | Excellent |
| Margins |
The average of operating and net margin, each scored on ET&A's margin scales. A negative margin scores 1 (Weak). | 8.0 / 10 | Strong |
| Cash generation |
Free cash flow as a share of sales, on ET&A's cash-generation scale. | 9.5 / 10 | Excellent |
| Balance sheet |
Net debt ÷ EBITDA — roughly how many years of operating earnings would repay the debt — on ET&A's leverage scale. | 10.0 / 10 | Excellent |
| Overall | Average of the 5 rated areas | 9.5 / 10 | Excellent |
ET&A's scales
Where each band starts on the scales above. They are fixed and identical for every company we cover; they come straight from ET&A’s methodology, so a company is judged the same way here as in our research.
| Measure | Excellent | Strong | Good | Average | Below Average | Weak |
|---|---|---|---|---|---|---|
| GrowthStructural Growth (Fundamental Conviction) | 18%+ | 10%+ | 5.0%+ | 1.7%+ | −2.5%+ | below −2.5% |
| Operating marginCompetitive Position (Fundamental Conviction) | 29%+ | 20%+ | 13%+ | 7.5%+ | 0%+ | below 0% (loss) |
| Net marginEarnings Durability (Fundamental Conviction) | 23%+ | 15%+ | 9.8%+ | 6.0%+ | 0%+ | below 0% (loss) |
| Free-cash-flow marginCapital Allocation (Fundamental Conviction) | 15%+ | 8.5%+ | 3.8%+ | 1.3%+ | −2.5%+ | below −2.5% |
| Net debt ÷ EBITDAStructural Risk (Fundamental Conviction) | net cash | ≤ 1.5× | ≤ 2.8× | ≤ 3.6× | ≤ 5.0× | above 5.0× |
| Return on equity (banks & insurers)Bank and insurer quality | 16%+ | 12%+ | 9.0%+ | 6.7%+ | 2.7%+ | below 2.7% |
| Equity ÷ assetsBank capital | 7.5%+ | 6.0%+ | 4.7%+ | 4.0%+ | any | — |
| Dividend yieldIncome factor (ET&A Quant Score) | 5.8%+ | 4.0%+ | 2.5%+ | 1.8%+ | 1.0%+ | below 1.0% |
Band floors: Excellent 8.5 · Strong 7 · Good 5.5 · Average 4.5 · Below Average 3 (scores out of 10). Utilities and property companies’ structural debt is scored 6.5, as in ET&A’s risk model.
Valuation model outputsFair Value, the 12-Month Price Target, Preferred Entry and the expected return — and how each was calculated.Members
Peer calculationsThe comparable companies the valuation model used, with their multiples and returns.Members
Detailed assumptionsEvery input the valuation model used, with its source.Members
Research notesNo research notes published yet.
No research notes have been published for PDD Holdings Inc yet.
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