PDD Relative Valuation
PDD's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PDD is overvalued; if below, it's undervalued.
Historical Valuation
PDD Holdings Inc (PDD) is now in the Fair zone, suggesting that its current forward PS ratio of 929.64 is considered Fairly compared with the five-year average of 18.79. The fair price of PDD Holdings Inc (PDD) is between to according to relative valuation methord.
Relative Value
Fair Zone
-
Current Price：129.04
Fair
12.57
PE
1Y
3Y
5Y
Trailing
Forward
8.54
EV/EBITDA
PDD Holdings Inc. (PDD) has a current EV/EBITDA of 8.54. The 5-year average EV/EBITDA is 10.17. The thresholds are as follows: Strongly Undervalued below -235.97, Undervalued between -235.97 and -112.90, Fairly Valued between 133.24 and -112.90, Overvalued between 133.24 and 256.30, and Strongly Overvalued above 256.30. The current Forward EV/EBITDA of 8.54 falls within the Historic Trend Line -Fairly Valued range.
9.32
EV/EBIT
PDD Holdings Inc. (PDD) has a current EV/EBIT of 9.32. The 5-year average EV/EBIT is 25.47. The thresholds are as follows: Strongly Undervalued below -187.19, Undervalued between -187.19 and -80.86, Fairly Valued between 131.79 and -80.86, Overvalued between 131.79 and 238.12, and Strongly Overvalued above 238.12. The current Forward EV/EBIT of 9.32 falls within the Historic Trend Line -Fairly Valued range.
917.19
PS
PDD Holdings Inc. (PDD) has a current PS of 917.19. The 5-year average PS is 16.19. The thresholds are as follows: Strongly Undervalued below -193.84, Undervalued between -193.84 and -88.83, Fairly Valued between 121.21 and -88.83, Overvalued between 121.21 and 226.22, and Strongly Overvalued above 226.22. The current Forward PS of 917.19 falls within the Strongly Overvalued range.
10.20
P/OCF
PDD Holdings Inc. (PDD) has a current P/OCF of 10.20. The 5-year average P/OCF is 14.06. The thresholds are as follows: Strongly Undervalued below -6.91, Undervalued between -6.91 and 3.58, Fairly Valued between 24.55 and 3.58, Overvalued between 24.55 and 35.03, and Strongly Overvalued above 35.03. The current Forward P/OCF of 10.20 falls within the Historic Trend Line -Fairly Valued range.
11.02
P/FCF
PDD Holdings Inc. (PDD) has a current P/FCF of 11.02. The 5-year average P/FCF is 15.34. The thresholds are as follows: Strongly Undervalued below -7.14, Undervalued between -7.14 and 4.10, Fairly Valued between 26.58 and 4.10, Overvalued between 26.58 and 37.83, and Strongly Overvalued above 37.83. The current Forward P/FCF of 11.02 falls within the Historic Trend Line -Fairly Valued range.
PDD Holdings Inc (PDD) has a current Price-to-Book (P/B) ratio of 3.59. Compared to its 3-year average P/B ratio of 5.34 , the current P/B ratio is approximately -32.77% higher. Relative to its 5-year average P/B ratio of 8.19, the current P/B ratio is about -56.19% higher. PDD Holdings Inc (PDD) has a Forward Free Cash Flow (FCF) yield of approximately 7.07%. Compared to its 3-year average FCF yield of 8.59%, the current FCF yield is approximately -17.70% lower. Relative to its 5-year average FCF yield of 6.90% , the current FCF yield is about 2.40% lower.
3.54
P/B
Median3y
5.34
Median5y
8.19
7.16
FCF Yield
Median3y
8.59
Median5y
6.90
Competitors Valuation Multiple
The average P/S ratio for PDD's competitors is 279.31, providing a benchmark for relative valuation. PDD Holdings Inc Corp (PDD) exhibits a P/S ratio of 917.19, which is 228.38% above the industry average. Given its robust revenue growth of 7.14%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of PDD increased by 33.64% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 10.14 to 13.87.
The secondary factor is the Revenue Growth, contributed 7.14%to the performance.
Overall, the performance of PDD in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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