PDD Holdings Inc. (PDD) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+271.7%

$307.73

vs $82.78 price

Levered DCF

$305.23

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

4.73

Safe zone

Rating

S-

Overall 5 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	11.46×	8.71×	23.32×	22.53×	59.73×	-191.94×	-43.59×	-11.12×
P/B	2.67×	3.13×	7.47×	6.04×	6.18×	22.9×	12.32×	6.08×
P/S	2.57×	2.49×	5.65×	5.45×	4.94×	23.16×	10.08×	8.72×
EV / EBITDA	7.6×	6.89×	18.29×	17.77×	36.82×	-159.98×	-38.56×	-23.06×
Gross margin	56.3%	60.9%	63.0%	75.9%	66.2%	67.6%	79.0%	77.9%
Operating margin	21.6%	27.5%	23.7%	23.3%	7.3%	-15.8%	-28.3%	-82.3%
Net margin	22.7%	28.5%	24.2%	24.2%	8.3%	-12.1%	-23.1%	-77.9%
Current ratio	2.45×	2.21×	1.93×	1.85×	1.72×	1.78×	1.6×	1.66×
Debt / equity	0.01×	0.03×	0.05×	0.14×	0.17×	0.28×	0.27×	0×
Interest coverage	0×	0×	1,334.46×	588.56×	5.6×	-12.39×	-58.54×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	23.6%	35.9%	32.1%	26.8%	10.3%	-11.9%	-28.3%	-54.3%
Return on invested capital	18.1%	28.4%	24.8%	19.6%	6.3%	-12.2%	-27.3%	-57.4%
Return on assets	15.5%	22.3%	17.2%	13.3%	4.3%	-4.5%	-9.2%	-23.7%
Free cash flow yield	9.5%	12.3%	6.7%	0.9%	5.5%	2.0%	4.9%	6.8%
Earnings yield	8.8%	11.5%	4.3%	4.4%	1.7%	-0.5%	-2.3%	-8.9%
Enterprise value	$930.8B	$932.6B	$1.3T	$693.8B	$470.4B	$1.4T	$304.6B	$100.3B
Net debt / EBITDA	-1.45×	-0.35×	-0.67×	-0.45×	0.5×	0.64×	-0.11×	3.26×
Cash conversion cycle (days)	-195	-269	-355	-771	-728	-984	-1,705	-2,135