Skip to content

PDD

NASDAQ
Favorable · 64/100

PDD Holdings Inc

Consumer Discretionary
Retail

$84.59

2.7%

Updated Today 12:11 PM ET

Report Card

PDD at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Favorable · 64/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▼ Down 18.5% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$117.27B

P/E

8.33x

Forward P/E (est.)

8.65x

ROE

24.1%

Revenue Growth

9.9%

EPS Growth

-3.7%

Profit Margin

21.6%

FCF Yield

Debt / Equity

0x

ROIC

18.0%

Interest Coverage

Current Ratio

2.43x

Dividend Yield

Implied Growth (rev. DCF)

Rating Score

64/100

Business Overview
Research

PDD Holdings Inc (PDD) is a large-cap company in the Retail industry, part of the Consumer Discretionary sector of the S&P 500, with a market value around $117.27B.

In its latest reported year it generated about $61.75B in revenue and $13.99B in net profit.

Our model rates PDD Favorable (64/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what PDD's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. PDD trades near $84.59, below its 50-day average ($89.06) and 200-day average ($108.22). Price below both averages is a downtrend — momentum is against buyers for now.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 56 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. PDD's is $2.76 (~3.3% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month PDD found buyers near $71.94 (support) and sellers near $86.60 (resistance); its 52-week range is $71.94–$139.41. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.6× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

43.1%

2/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $1.91B in 2018 to $61.75B in 2025, a 64.3% compound annual growth rate. The most recent year grew a steady 9.9% year over year. Slower, mature growth is common for established businesses.

Profitability
Research
4/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

56.0%

Operating Margin

21.6%

Net Margin

22.7%

ROE

24.1%

PDD Holdings Inc keeps about 21.6% of each sales dollar as net profit, with a 56.0% gross margin and 21.6% operating margin. Return on equity is 24.1% and return on invested capital about 18.0%. Margins this wide usually signal pricing power or a cost advantage.

Debt Analysis
Research
3/3 checks passedDebt under 1× equityDebt under 2× equityShort-term bills covered

Total Debt

Net Debt

Net Debt / EBITDA

Debt / Equity

0x

Leverage: debt-to-equity is 0.0x, with a current ratio of 2.4x. That is a conservative balance sheet — a cushion in downturns.

Cash Flow Analysis
Research

Operating CF

$15.29B

Free Cash Flow

$15.29B

FCF Margin

24.8%

In the latest year PDD Holdings Inc produced about $15.29B of operating cash flow and $15.29B of free cash flow after capital spending. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research
2/3 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)

P/E

8.33x

P/S

1.85x

P/B

2.61x

EV / EBITDA

7.59x

PDD trades at 8.3x trailing earnings (about 8.6x on estimated forward earnings), 1.8x sales, and 2.6x book value. That is an undemanding multiple — potentially cheap if the business is stable.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
8.3xCheap
Forward P/E
8.6xCheap
P/S ratio
1.8xFair
Revenue growth
9.9%Strong
EPS growth
-3.7%Weak
Gross margin
56.0%Strong
Net margin
21.6%Strong
ROE
24.1%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $84.59 today · expected CAGR -25%-18%

Metric20262027202820292030
Revenue$67.93B$74.72B$82.19B$90.41B$99.45B
Net income$15.62B$17.19B$18.90B$20.79B$22.87B
EPS$2.74$3.02$3.32$3.65$4.02
Share price (low)$13.72$15.09$16.60$18.26$20.09
Share price (high)$21.95$24.15$26.56$29.22$32.14
CAGR (low–high)-84% / -74%-58% / -47%-42% / -32%-32% / -23%-25% / -18%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for PDD:

  • High net margins (21.6%) point to pricing power or efficiency.
  • Strong return on equity (24.1%) shows capital is put to work well.
  • A conservative balance sheet (debt/equity 0.0x) lowers risk.
  • Our model's overall read is Favorable (64/100).
Bear Case

The case against PDD:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: PDD Holdings Inc is a large-cap consumer discretionary business growing at a mature pace, with solid profitability, and a sound balance sheet. It trades at 8.3x earnings, which our model scores Favorable (64/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

PDD — frequently asked questions

Is PDD a good stock to buy?

We don't give buy or sell advice. Our model rates PDD Holdings Inc Favorable (64/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is PDD's rating on The Stocks School?

PDD Holdings Inc currently scores 64/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does PDD's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from PDD Holdings Inc's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for PDD calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this PDD analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell PDD. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.