Pinduoduo Inc. (PDD), Discounted Cash Flow Valuation

Pinduoduo Inc. (PDD) Profile

CN | Consumer Cyclical | Specialty Retail | NASDAQ
1.34 (1.45%)
Real-Time Price (USD)
Market Cap A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
32.53B
Revenue (ttm) The total amount of income generated by the sale of goods or services related to the company's primary operations.
393.84B
Net Income (ttm) The company's earnings for a period net of operating costs, taxes and interest.
112.43B
Shares Out Total number of common shares outstanding as of the latest date disclosed in a financial filing.
1.48B
EPS (ttm) Company's net earnings or losses from continuing operations on a per diluted share basis.
32.9
PE Ratio The price-to-earnings (PE) ratio is the ratio between a company's stock price and earnings per share. It measures the price of a stock relative to its profits.
2.33
Dividend Yield Measures the cash returned to shareholders by a firm as a percentage of the price they pay for each share of stock.
0.00%
Exchange Name of stock exchange where the trading item trades.
NASDAQ
Avg Volume The average number of shares traded each day over the past 30 days.
11.13M
Open The opening trade price over the trading day.
Previous Close The last closing price.
92.35
Beta A ratio that measures the risk or volatility of a company's share price in comparison to the market as a whole.
0.72
1 day delta The range between the high and low prices over the past day.
52 weeks The range between the high and low prices over the past 52 weeks.
87.11-164.69

Total Valuation

PDD Holdings Inc. has a market cap or net worth of 237.46B. The enterprise value is 190.3B.
Market Cap (ttm) Market Capitalization
A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
237.46B
Enterprise Value (ttm) Enterprise Value
Enterprise value measures the total value of a company's outstanding shares, adjusted for debt and levels of cash and short-term investments.
Enterprise Value = Market Cap + Total Debt - Cash & Equivalents - Short-Term Investments
190.3B

Valuation Ratios

The trailing PE ratio is 2.25. PDD Holdings Inc.'s PEG ratio is 0.03.
PE Ratio (ttm) PE Ratio
The price-to-earnings (P/E) ratio is a valuation metric that shows how expensive a stock is relative to earnings.
PE Ratio = Stock Price / Earnings Per Share
2.25
PS Ratio (ttm) PS Ratio
The price-to-sales (P/S) ratio is a commonly used valuation metric. It shows how expensive a stock is compared to revenue.
PS Ratio = Market Capitalization / Revenue
0.6
PB Ratio (ttm) PB Ratio
The price-to-book (P/B) ratio measures a stock's price relative to book value. Book value is also called Shareholders' equity.
PB Ratio = Market Capitalization / Shareholders' Equity
0.81
P/FCF Ratio (ttm) P/FCF Ratio
The price to free cash flow (P/FCF) ratio is similar to the P/E ratio, except it uses free cash flow instead of accounting earnings.
P/FCF Ratio = Market Capitalization / Free Cash Flow
1.95
PEG Ratio (ttm) PEG Ratio
The price/earnings to growth (PEG) ratio is calculated by dividing a company's PE ratio by its expected earnings growth.
PEG Ratio = PE Ratio / Expected Earnings Growth
0.03

Enterprise Valuation

The stock's EV/EBITDA ratio is 1.67, with a EV/FCF ratio of 1.56.
EV / Sales (ttm) EV / Sales Ratio
The enterprise value to sales (EV/Sales) ratio is similar to the price-to-sales ratio, but the price is adjusted for the company's debt and cash levels.
EV/Sales Ratio = Enterprise Value / Revenue
0.48
EV / EBITDA (ttm) EV / EBIT Ratio
The EV/EBITDA ratio measures a company's valuation relative to its EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization.
EV/EBITDA Ratio = Enterprise Value / EBITDA
1.67
EV / EBIT (ttm) EV/EBIT Ratio
The EV/EBIT is a valuation metric that measures a company's price relative to EBIT, or Earnings Before Interest and Taxes.
EV/EBIT Ratio = Enterprise Value / EBIT
1.56
EV / FCF (ttm) EV/FCF Ratio
The enterprise value to free cash flow (EV/FCF) ratio is similar to the price to free cash flow ratio, except the price is adjusted for the company's cash and debt.
EV/FCF Ratio = Enterprise Value / Free Cash Flow
1.56

Financial Efficiency

Return on equity (ROE) is 42.25% and return on invested capital (ROIC) is 28.35%.
Return on Equity (ROE) (ttm) Return on Equity (ROE)
Return on equity (ROE) is a profitability metric that shows how efficient a company is at using its equity (or "net" assets) to generate profits. It is calculated by dividing the company's net income by the average shareholders' equity over the past 12 months.
ROE = (Net Income / Average Shareholders' Equity) * 100%
42.25%
Return on Assets (ROA) (ttm) Return on Assets (ROA)
Return on assets (ROA) is a metric that measures how much profit a company is able to generate using its assets. It is calculated by dividing net income by the average total assets for the past 12 months.
ROA = (Net Income / Average Total Assets) * 100%
22.26%
Return on Capital (ROIC) (ttm) Return on Capital (ROIC)
Return on invested capital (ROIC) measures how effective a company is at investing its capital in order to increase profits. It is calculated by dividing the EBIT (Earnings Before Interest & Taxes) by the average invested capital in the previous year.
ROIC = (EBIT / Average Invested Capital) * 100%
28.35%
Asset Turnover Asset Turnover
The asset turnover ratio measures the amount of sales relative to a company's assets. It indicates how efficiently the company uses its assets to generate revenue.
Asset Turnover Ratio = Revenue / Average Assets
0.78
Inventory Turnover (ttm) Inventory Turnover
The inventory turnover ratio measures how many times inventory has been sold and replaced during a time period.
Inventory Turnover Ratio = Cost of Revenue / Average Inventory
0

Margins

Trailing 12 months gross margin is 60.92%, with operating and profit margins of 27.53% and 28.55%.
Gross Margin (ttm) Gross Margin
Gross margin is the percentage of revenue left as gross profits, after subtracting cost of goods sold from the revenue.
Gross Margin = (Gross Profit / Revenue) * 100%
60.92%
Operating Margin (ttm) Operating Margin
Operating margin is the percentage of revenue left as operating income, after subtracting cost of revenue and all operating expenses from the revenue.
Operating Margin = (Operating Income / Revenue) * 100%
27.53%
Pretax Margin (ttm) Pretax Margin
Pretax margin is the percentage of revenue left as profits before subtracting taxes.
Pretax Margin = (Pretax Income / Revenue) * 100%
33.71%
Profit Margin (ttm) Profit Margin
Profit margin is the percentage of revenue left as net income, or profits, after subtracting all costs and expenses from the revenue.
Profit Margin = (Net Income / Revenue) * 100%
28.55%
EBITDA Margin (ttm) EBITDA Margin
EBITDA margin is the percentage of revenue left as EBITDA, after subtracting all expenses except interest, taxes, depreciation and amortization from revenue.
EBITDA Margin = (EBITDA / Revenue) * 100%
28.92%

Income Statement

In the last 12 months, PDD Holdings Inc. had revenue of 393.84B and earned 112.43B in profits. Earnings per share (EPS) was 32.9.
Revenue (ttm) Revenue
Revenue is the amount of money a company receives from its main business activities, such as sales of products or services. Revenue is also called sales.
393.84B
Gross Profit (ttm) Gross Profit
Gross profit is a company’s profit after subtracting the costs directly linked to making and delivering its products and services.
Gross Profit = Revenue - Cost of Revenue
239.94B
Operating Income (ttm) Operating Income
Operating income is the amount of profit in a company after paying for all the expenses related to its core operations.
Operating Income = Revenue - Cost of Revenue - Operating Expenses
108.42B
Pretax Income (ttm) Pretax Income
Pretax income is a company's profits before accounting for income taxes.
Pretax Income = Net Income + Income Taxes
132.75B
Net Income (ttm) Net Income
Net income is a company's accounting profits after subtracting all costs and expenses from the revenue. It is also called earnings, profits or "the bottom line"
Net Income = Revenue - All Expenses
112.43B
EBITDA (ttm) EBITDA
EBITDA stands for "Earnings Before Interest, Taxes, Depreciation and Amortization." It is a commonly used measure of profitability.
EBITDA = Net Income + Interest + Taxes + Depreciation and Amortization
113.9B
EBIT (ttm) EBIT
EBIT stands for "Earnings Before Interest and Taxes" and is a commonly used measure of earnings or profits. It is similar to operating income.
EBIT = Net Income + Interest + Taxes
108.42B
Earnings Per Share (EPS) (ttm) EPS (Diluted)
Earnings per share is the portion of a company's profit that is allocated to each individual stock. Diluted EPS is calculated by dividing net income by "diluted" shares outstanding.
Diluted EPS = Net Income / Shares Outstanding (Diluted)
32.9

Financial Position

The company has a trailing 12 months (ttm) current ratio of 2.21, with a ttm Debt / Equity ratio of 0.03.
Current Ratio (ttm) Current Ratio
The current ratio is used to measure a company's short-term liquidity. A low number can indicate that a company will have trouble paying its upcoming liabilities.
Current Ratio = Current Assets / Current Liabilities
2.21
Quick Ratio (ttm) Quick Ratio
The quick ratio measure a company's short-term liquidity. A low number indicates that the company may have trouble paying its upcoming financial obligations.
Quick Ratio = (Cash + Short-Term Investments + Accounts Receivable) / Current Liabilities
2.21
Debt / Equity (ttm) Debt / Equity Ratio
The debt-to-equity ratio measures a company's debt levels relative to its shareholders' equity or book value. A high ratio implies that a company has a lot of debt.
Debt / Equity Ratio = Total Debt / Shareholders' Equity
0.03
Debt / EBIT (ttm) Debt / EBIT Ratio
The debt-to-EBIT ratio is a company's debt levels relative to its trailing twelve-month EBIT. A high ratio implies that debt is high relative to the company's earnings.
Debt / EBIT Ratio = Total Debt / EBIT (ttm)
1.22

Dividends & Yields

This stock pays an annual dividend of 0, which amounts to a dividend yield of 0.00%.
Dividend Per Share (ttm) Dividend Per Share
Total amount paid to each outstanding share in dividends during the period.
0
Dividend Yield (ttm) Dividend Yield
The dividend yield is how much a stock pays in dividends each year, as a percentage of the stock price.
Dividend Yield = (Annual Dividends Per Share / Stock Price) * 100%
0.00%
Earnings Yield (ttm) Earnings Yield
The earnings yield is a valuation metric that measures a company's profits relative to stock price, expressed as a percentage yield. It is the inverse of the P/E ratio.
Earnings Yield = (Earnings Per Share / Stock Price) * 100%
44.37%
FCF Yield (ttm) FCF Yield
The free cash flow (FCF) yield measures a company's free cash flow relative to its price, shown as a percentage. It is the inverse of the P/FCF ratio.
FCF Yield = (Free Cash Flow / Market Cap) * 100%
51.35%
Dividend Growth (YoY) Dividend Growth
The change in dividend payments per share, compared to the previous period.
Dividend Growth = ((Current Dividend / Previous Dividend) - 1) * 100%
0.00%
Payout Ratio (ttm) Payout Ratio
The payout ratio is the percentage of a company's profits that are paid out as dividends. A high ratio implies that the dividend payments may not be sustainable.
Payout Ratio = (Dividends Per Share / Earnings Per Share) * 100%
0.00%

Balance Sheet

The company has 57.77B in cash and 10.61B in debt, giving a net cash position of 47.16B.
Cash & Cash Equivalents Cash & Cash Equivalents
Cash and cash equivalents is the sum of "Cash & Equivalents" and "Short-Term Investments." This is the amount of money that a company has quick access to, assuming that the cash equivalents and short-term investments can be sold at a short notice.
Cash & Cash Equivalents = Cash & Equivalents + Short-Term Investments
57.77B
Total Debt Total Debt
Total debt is the total amount of liabilities categorized as "debt" on the balance sheet. It includes both current and long-term (non-current) debt.
Total Debt = Current Debt + Long-Term Debt
10.61B
Net Cash Net Cash / Debt
Net Cash / Debt is an indicator of the financial position of a company. It is calculated by taking the total amount of cash and cash equivalents and subtracting the total debt.
Net Cash / Debt = Total Cash - Total Debt
47.16B
Book Value Shareholders' Equity
Shareholders’ equity is also called book value or net worth. It can be seen as the amount of money held by investors inside the company. It is calculated by subtracting all liabilities from all assets.
Shareholders' Equity = Total Assets - Total Liabilities
313.31B
Book Value Per Share (ttm) Book Value Per Share
Book value per share is the total amount of book value attributable to each individual stock. It is calculated by dividing book value (shareholders' equity) by the number of outstanding shares.
Book Value Per Share = Book Value / Shares Outstanding
211.41
Working Capital (ttm) Working Capital
Working capital is the amount of money available to a business to conduct its day-to-day operations. It is calculated by subtracting total current liabilities from total current assets.
Working Capital = Current Assets - Current Liabilities
227.23B

Cash Flow

In the last 12 months, operating cash flow of the company was 121.93B and capital expenditures 0, giving a free cash flow of 121.93B.
Operating Cash Flow (ttm) Operating Cash Flow
Operating cash flow, also called cash flow from operating activities, measures the amount of cash that a company generates from normal business activities. It is the amount of cash left after all cash income has been received, and all cash expenses have been paid.
121.93B
Capital Expenditures (ttm) Capital Expenditures
Capital expenditures are also called payments for property, plants and equipment. It measures cash spent on long-term assets that will be used to run the business, such as manufacturing equipment, real estate and others.
0
Free Cash Flow (ttm) Free Cash Flow
Free cash flow is the cash remaining after the company spends on everything required to maintain and grow the business. It is calculated by subtracting capital expenditures from operating cash flow.
Free Cash Flow = Operating Cash Flow - Capital Expenditures
121.93B
FCF Per Share (ttm) Free Cash Flow Per Share
Free cash flow per share is the amount of free cash flow attributed to each outstanding stock.
FCF Per Share = Free Cash Flow / Shares Outstanding
82.27

PDD Holdings Inc. News

Apr 17, 2025 - foxbusiness.com
Temu, Shein to raise prices for US consumers starting next week as Trump administration closes tariff loophole
Temu and Shein are planning to raise their ultra-low prices for U.S. consumers as Trump's executive order ending the "de minimus" tariff loophole is set to take effect....[read more]
Apr 17, 2025 - marketbeat.com
Time to Buy Alibaba and PDD After Tariff Exemptions?
The entire market has turned sour on Chinese stocks despite what promise of upside they may have brought over the past two quarters. Asia's powerhouse beat the S&P 500 index in terms of price action until talks of trade tariffs being rolled out by President Trump started to create fear and uncertainty for the future of China's economy as its uneven stance with trade with the United States was placed in the spotlight....[read more]
Apr 17, 2025 - seekingalpha.com
Bulls In A China Shop: 5 Chinese Stocks To Ride Out The Trade War
Donald Trump has exempted reciprocal tariffs on certain electronic Chinese imports, giving markets a slight reprieve as the U.S.-China trade war heats up. While tariffs are likely to burn both countries, China could be in a stronger position to replace key U.S. imports. SA Quant has identified five Chinese stocks with strong financials and high Quant Factor Grades that are well-positioned for recovery once market conditions stabilize....[read more]
Apr 16, 2025 - reuters.com
Temu, Shein slash digital ads as tariffs end cheap shipping from China, data show
Chinese online marketplace Temu and fast-fashion retailer Shein, two of the biggest advertisers on U.S. social media, are sharply cutting their U.S. digital ad spending, industry data show, in a blow to tech companies such as Meta's Facebook and YouTube....[read more]
Apr 16, 2025 - barrons.com
Delisting Chinese Stocks Is a Real Possibility for Trump. There's a Lot at Stake.
Alibaba and Baidu, which both trade on the Nasdaq, have tumbled on worries that they could be banned from the U.S....[read more]
Apr 16, 2025 - nypost.com
Shein, Temu to raise prices as expenses rise while under pressure from Trump's trade policies
In letters to customers this week that mirror each other, both firms said they will be increasing prices starting April 25, and encouraged shoppers to purchase "now at today's rates."...[read more]
Apr 16, 2025 - cnbc.com
Temu slashes U.S. ad spending, plummets in App Store rankings after Trump China tariffs
Temu has pulled back on its online ad spending in the U.S. in the wake of President Donald Trump's sweeping tariffs. The Chinese online retailer has also fallen swiftly from the top ranks of Apple's app store....[read more]
Apr 16, 2025 - reuters.com
Shein, Temu to hike prices under pressure from Trump's trade policies
Chinese online marketplace Temu and fast-fashion retailer Shein will raise prices on their products next week as President Trump's crackdown on low-value imports and sweeping tariffs increase expenses for the companies known for their low-priced offerings....[read more]
Apr 16, 2025 - youtube.com
The Big 3: IBIT, PDD, WMT
@Theotrade's Don Kaufman returns to the Big 3 and offers two bearish example options trades in the iShares Bitcoin ETF (IBIT) and Walmart (WMT). However, he offers a bullish trade in Temu's parent company, PDD Holdings (PDD)....[read more]
Apr 16, 2025 - benzinga.com
Why Are US-Listed Chinese Stocks Falling On Wednesday?
U.S.-listed Chinese companies Alibaba Group Holding BABA, PDD Holdings Inc PDD, Baidu, Inc BIDU, NIO Inc NIO, Li Auto Inc LI, and XPeng Inc XPEV are trading lower Wednesday....[read more]

PDD Holdings Inc. Details

Country IE
City Dublin
Address 25 Saint Stephens Green
Ticker Symbol PDD
Exchange NASDAQ Global Select
IPO Date Jul 26, 2018
CEO Mr. Lei Chen
Sector Consumer Cyclical
Industry Specialty Retail
Employees 17.4K

PDD Holdings Inc. Company Description

PDD Holdings Inc., a multinational commerce group, owns and operates a portfolio of businesses. It operates Pinduoduo, an e-commerce platform that offers products in various categories, including agricultural produce, apparel, shoes, bags, mother and childcare products, food and beverage, electronic appliances, furniture and household goods, cosmetics and other personal care, sports and fitness items and auto accessories; and Temu, an online marketplace. It focuses on bringing businesses and people into the digital economy. The company was formerly known as Pinduoduo Inc. and changed its name to PDD Holdings Inc. in February 2023. The company was incorporated in 2015 and is based in Dublin, Ireland.

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