PDD Holdings (ADR) (PDD)
Consumer · NASDAQ · China
Fundamentals
Valuation and ratings
PDD Holdings (ADR) trades at $86.68, which is 61% above the $34.05 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 86 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 9.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About PDD Holdings (ADR)
PDD Holdings Inc., a multinational commerce group that owns and operates a portfolio of businesses. The company operates Pinduoduo platform, which provides various product categories and interactive shopping experiences; and Temu, an online platform, which enables merchants to streamline their manufacturing and commercial operations. The company was formerly known as Pinduoduo Inc. and changed its name to PDD Holdings Inc. in February 2023. PDD Holdings Inc. was incorporated in 2015 and is based in Dublin, Ireland.
PDD passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
19 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Baillie Gifford, BAILLIE GIFFORD & CO$2.90B · 3.0% of book
- Duan Yongping, H&H International Investment, LLC$2.02B · 10.1% of book
- Lewis Sanders, Sanders Capital, LLC$826.82M · 1.0% of book
- Li Lu, Himalaya Capital Management LLC$470.85M · 14.7% of book
- Dodge & Cox, DODGE & COX$463.65M · 0.3% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is PDD Holdings (ADR) (PDD) undervalued?
Against our discounted cash flow estimate of $34.05, PDD at $86.68 is 61% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own PDD?
19 of the institutions we track reported a position in PDD in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is PDD's P/E ratio?
PDD trades at 9.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for PDD, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.