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STOCK COMPARISON

Home Depot vs PDD Holdings: Fair Value & Quality

Both stocks run through our valuation models. Here is how Home Depot (HD) and PDD Holdings (PDD) compare, as of Aug 14, 2026.

As of Aug 14, 2026, Fair Value Calculator sees PDD Holdings as the more attractively valued of the two: Home Depot trades at $342 versus a fair value of $237 (-31%), while PDD Holdings trades at $84.17 versus $224 (+166%).
Home Depot
HD · USD · Consumer Discretionary
-31%
upside to fair value
overvalued
Price$342
Fair Value$237
Quality57/100
PDD Holdings
PDD · USD · Consumer Discretionary
+166%
upside to fair value
undervalued
Price$84.17
Fair Value$224
Quality66/100

Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

Home DepotPDD Holdings
Valuation
24.4×P/E (TTM)9.0×
2.06×P/S (TTM)1.88×
26.72×P/B2.00×
15.5×EV/EBITDA6.7×
1.94×PEG0.80×
2.1%Dividend yield
$6.93Dividend per share
Profitability
8%Net margin22%
12%Operating margin18%
128%Return on equity25%
13%Return on assets10%
Growth
5%Revenue growth (YoY)11%
1.5%Avg. growth/yr (3Y)49.0%
4.5%Avg. growth/yr (5Y)48.7%
Balance & size
3.62×Debt / equity0.01×
$342BMarket cap$123B
healthyGrowth qualityhealthy

PDD Holdings leads: 2 to 11 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Home Depotof which business quality 55 · market factors 46 PDD Holdingsof which business quality 69 · market factors 33
ProfitabilityMargins and returns on capital today
83
76
Quality GrowthAre margins and returns improving?
30
22
CashflowEarnings quality: real cash, not paper profit
50
81
Fin. StrengthBalance sheet, leverage, solvency risk
34
96
InvestmentDisciplined investing over empire-building
48
33
Low VolatilityCalm price path (market factor)
71
79
MomentumPrice trend over the last 3–12 months (market factor)
37
16
52W MomentumDistance to the 52-week high (market factor)
31
10
Net IssuanceBuybacks instead of dilution
84
76

What the models say

The median fair value (base case) per model family, each in the currency of its trading venue. Green = above the current price, red = below.

Home Depot

DCF Models$247
Earnings-Based$129
Dividend Discount$174
Multiples$227
Asset-Based$8.61
Growth DCF$193
Economic Profit$128
Growth Earnings$285

26 of 26 models see the stock below the current price.

PDD Holdings

DCF Models$2,071
Earnings-Based$2,406
Multiples$1,051
Asset-Based$195
Growth DCF$1,778
Economic Profit$890
Growth Earnings$3,194

0 of 24 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Home Depot
Bear $129Fair Value $237Bull $312
$342 = current price (white tick)
PDD Holdings
Bear $168Fair Value $224Bull $492
$84.17 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Home Depot · Consumer Discretionary

Quality score57 · above median
Fair value upside-31% · below median

PDD Holdings · Consumer Discretionary

Quality score66 · Top 25%
Fair value upside+166% · Top 25%

Bottom line

As of Aug 14, 2026, Fair Value Calculator sees PDD Holdings as the more attractively valued of the two: Home Depot trades at $342 versus a fair value of $237 (-31%), while PDD Holdings trades at $84.17 versus $224 (+166%).

PDD Holdings has the higher quality score (66/100).

See the full analysis →

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A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.