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Pinduoduo Inc. (P1DD34) Fair Value & Analysis

Consumer Cyclical · BR · Market cap R$640B (≈ $126B)

What is Pinduoduo Inc. really worth?

PI Pinduoduo Inc. P1DD34 · SA
PriceR$41.61
Fair ValueR$92.25
Upside+121.7%
Quality67/100

A solid business, trading 55% below our fair value of R$92.25.

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Strengths

Healthy Growth (revenue 5y +48.7 %/yr)
Highly profitable · 21.6% net margin
Low debt · generates free cash flow
Ranks above peers (13/14)
Wide moat 78/100
Evidence: High Range R$69.09 – R$157.45

Fair value as of: Aug 29, 2026

From 24 valuation models · updated 6 days ago

Fair value updated Aug 29, 2026, revised from R$92.05 to R$92.25 (+0.2%) since Aug 19, 2026. Share price +1.5% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (R$69.09). The market is more pessimistic than our downside scenario.
  • Solid quality (67/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (R$69.09 to R$157.45) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

R$83.80 R$13.26 Fair Value R$92.25 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 29, 2026.

How to read this chart

60‑month range R$13.26 – R$83.80 · fair‑value band R$69.09 – R$157.45 · the R$41.61 price screens below the R$92.25 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 29, 2026.

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Analysis

Pinduoduo Inc. (P1DD34) currently trades at R$41.61, while our model-based Fair Value estimate is R$92.25, implying the stock looks roughly 54.9% undervalued today. The Quality Score stands at 67/100 (solid quality), in the Consumer Cyclical sector. Bull case: the Growth Earnings group reads highest at a median of R$324.33 per share, and 22 of the 24 models we run sit above the R$41.61 price. Bear case: the Asset-Based group reads lowest at R$19.53, and 2 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Pinduoduo Inc. generated revenue of R$442B at a net margin of 21.6%. Revenue grew 11.0% year over year. It earns a return on equity of 25.4%. Net debt stands at R$5.4B. Fundamentals as of Aug 29, 2026

Our scenario range runs from R$69.09 (bear case) to R$157.45 (bull case); at R$41.61, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 45% below its 52-week high and 1% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −50% fair-value upside, at 122%, P1DD34 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly R$3.24 per share, which is 3.5 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
EPV best evidence R$67.48 R$78.04 R$87.42 74
FCF DCF R$140.38 R$221.67 R$487.45 72
Growth DCF R$132.75 R$268.38 R$496.16 72
All 24 models by family
DCF Models
FCF DCF R$140.38 R$221.67 R$487.45 72
Owner Earnings R$125.98 R$284.90 R$633.45 68
5Y Revenue Exit R$63.45 R$91.24 R$148.31 69
5Y EBITDA Exit R$90.04 R$145.03 R$252.55 70
5Y P/E Exit R$131.34 R$283.90 R$491.82 65
10Y Revenue Exit R$84.78 R$146.90 R$176.83 65
10Y EBITDA Exit R$105.84 R$205.51 R$372.49 63
10Y P/E Exit R$136.66 R$296.54 R$559.49 58
Earnings-Based
Graham-Dodd R$47.47 R$331.05 R$464.57 61
Lynch FV R$171.03 R$244.33 R$317.63 59
PEG = 1.0 R$171.03 R$244.33 R$317.63 55
EPV best evidence R$67.48 R$78.04 R$87.42 74
Multiples
P/E Multiple R$115.18 R$153.58 R$191.97 63
P/S Multiple R$27.31 R$36.41 R$45.51 58
P/B Multiple R$87.45 R$116.60 R$145.75 55
EV/EBIT R$97.40 R$127.31 R$157.23 66
EV/EBITDA R$69.38 R$89.95 R$110.53 67
EV/Revenue R$33.14 R$44.06 R$54.98 54
Asset-Based
NCAV (Graham) R$14.57 R$19.53 R$29.15 54
Growth DCF
Growth DCF R$132.75 R$268.38 R$496.16 72
Rev-Margin DCF R$68.48 R$103.52 R$177.88 68
Economic Profit
Residual Income R$50.23 R$67.76 R$417.99 61
ROIC Compounder R$90.44 R$144.40 R$199.81 68
Growth Earnings
Growth-Adj P/E R$227.03 R$324.33 R$421.63 65

Widest divergence: Growth Earnings (R$324.33) versus Asset-Based (R$19.53). Highest evidence: EPV (74).

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Key figures & financial health

P/E ratio 8.5
P/S ratio 1.95 P/E × margin
EPS (TTM) R$4.92 price ÷ EPS = P/E 8.5
Net margin 23.0% FY2025
Return on equity 25.4% TTM
Return on assets (EBIT) 14.0% avg 5y
More key figures
Profitability
Operating margin 18.4% TTM
Growth
Revenue (TTM) R$442B TTM
Revenue growth (YoY) +11.0% 3y avg +49.0%
EPS growth (YoY) −14.9%
Balance sheet & cash flow
Free cash flow R$106B FY2025
Net debt R$5.4B FY2021 · ≈ 0.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 29, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 69 · Market factors (momentum, volatility) 27

Profitability 77
Margins and returns on capital today
Quality Growth 30
Are margins and returns improving?
Cashflow 80
Earnings quality: real cash, not paper profit
Fin. Strength 91
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 56
Calm price path (market factor)
Momentum 21
Price trend over the last 3–12 months (market factor)
52W Momentum 6
Distance to the 52-week high (market factor)
Net Issuance 73
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

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.

Full company description

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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Pinduoduo Inc. reported revenue of 432B CNY in FY2025 versus 93.9B CNY in FY2021, a compound +46.4%/yr. Reported net income was 99.4B CNY in FY2025, compounding +89.1%/yr from FY2021. FY2021 was a trough year, so the rate overstates the trend.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
R$432B
Latest YoY
+9.7%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+49.0%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+48.7%
Avg. revenue growth/yr (7Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+64.7%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+63.3% (63.3 + 0.0)
Revenue +46.4%/yr
FY21 93.9B CNY
FY22 131B CNY
FY23 248B CNY
FY24 394B CNY
FY25 432B CNY
Net income +89.1%/yr
FY21 7.8B CNY
FY22 31.5B CNY
FY23 60.0B CNY
FY24 112B CNY
FY25 99.4B CNY

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Cite: Fair Value Calculator (2026). "Pinduoduo Inc. Fair Value". https://www.fairvalue-calculator.com/stock/P1DD34

Peer Group

Internet Retail · 103 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 67 · Top 25%
Fair Value upside +122% · Top 25%
Return on equity (TTM) 25% · Top 25%
Return on assets 10% · Top 25%
Net margin (TTM) 22% · Top 25%
Operating margin (TTM) 18% · Top 25%
Revenue growth 11% · Above median

Valuation Multiples vs Internet Retail median · lower = cheaper

P/E (TTM) 8.5× · Cheaper than 75% of peers
P/B 1.54× · Cheaper than median
P/S (TTM) 1.45× · Pricier than median
P/FCF 1.2× · Cheaper than median
EV/EBITDA 5.5× · Cheaper than median
PEG 0.78× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 23
FUTURE55 · sector 52
PAST100 · sector 12
HEALTH100 · sector 94
DIVIDEND0 · sector 38

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Internet Retail stocks, each showing price versus our Fair Value estimate (as of Aug 29, 2026).

Stock Price Fair Value vs Fair Value
Amazon.com, Inc AMZN $256.26 $127.67 −50%
Alibaba Group 89988 HK$97.45 HK$48.38 −50%
PDD Holdings PDD $85.69 $225.48 +163%
MercadoLibre, Inc MELI $1,966 $798.98 −59%
DoorDash, Inc DASH $222.00 $38.64 −83%
Sea Limited SE $118.32 $52.70 −55%
JD.com, Inc 89618 ¥95.45 ¥73.98 −22%
eBay Inc EBAY $105.62 $60.13 −43%
Coupang, Inc CPNG $16.32 $2.79 −83%
Delivery Hero SE DHER €37.05 €12.71 −66%

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Frequently asked questions

Is Pinduoduo Inc. (P1DD34) overvalued or undervalued?
As of Aug 29, 2026, our model estimates a fair value of R$92.25 versus a price of R$41.61, about +122% upside (undervalued).
What is the fair value of P1DD34?
Our model-based fair value for Pinduoduo Inc. is R$92.25 (as of Aug 29, 2026), built from audited fundamentals. The current price: R$41.61.
What is the quality score of P1DD34?
Pinduoduo Inc. has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Pinduoduo Inc. (P1DD34)?
Pinduoduo Inc. reported trailing-twelve-month revenue of about R$442B (latest available figure, as of Aug 29, 2026).
What is the net profit margin of P1DD34?
The net profit margin of Pinduoduo Inc. is about 21.6%, meaning it keeps roughly 21.6% of revenue as net income. Based on the latest reported figures.
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