PDD (PDD) Stock Analysis

June 13, 2026

Here is a fundamental analysis of PDD (PDD), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

PDD

GSPC

PDD (PDD) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…

Trailing total returns for PDD (PDD) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

PDD (PDD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: PDD	Industry group median
1-Year Return	-21.14%	4.16%

Risk

Drawdown

PDD

GSPC

PDD (PDD) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

PDD (PDD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: PDD	Industry group median
1-Year Volatility	32.55%	47.42%
Beta	-0.02	1.12

Company Profile

PDD (PDD) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile fields for PDD (PDD)
Profile Item	PDD
Name	PDD Holdings Inc. American Depositary Shares
Country/Region	Ireland
GICS Sector	Consumer Discretionary
GICS Industry Group	Consumer Discretionary Distribution & Retail
GICS Industry	Broadline Retail
GICS Sub-Industry	Broadline Retail
Market Capitalization	116.09 billion USD
Currency	USD
Exchange	Nasdaq
Listing Date	July 26, 2018
Security Type	ADR

Valuation

Price-to-Earnings Ratio (TTM)

PDD (PDD) trades at P/E ratio of 8.55, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

PDD

Consumer Discretionary Distribution & Retail industry group

8.55

Group distribution

Max: 54.29
Q3: 31.64
Median: 20.61
Q1: 12.78
PDD: 8.55
Min: 1.13

Largest peers

MELI: 42.01
TJX: 32.76
AMZN: 31.64
HD: 23.31
LOW: 18.66
BABA: 17.36
PDD: 8.55

Where PDD (PDD) stands on P/E ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

PDD (PDD) trades at 0.26 on P/S ratio, in the lower sales-valuation quartile for its industry. That points to a cheaper revenue stream than most peers, with margin quality still doing the heavy lifting.

PDD

Consumer Discretionary Distribution & Retail industry group

0.26

Group distribution

Max: 3.65
Q3: 1.78
Median: 0.73
Q1: 0.28
PDD: 0.26
Min: 0.03

Largest peers

AMZN: 3.45
TJX: 3.02
MELI: 2.53
HD: 1.97
LOW: 1.40
BABA: 0.26
PDD: 0.26

Where PDD (PDD) stands on P/S ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

PDD (PDD) trades at 1.83 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

PDD

Consumer Discretionary Distribution & Retail industry group

1.83

Group distribution

Max: 11.07
Q3: 5.11
Median: 2.24
PDD: 1.83
Q1: 1.05
Min: -3.64

Largest peers

HD: 23.60
TJX: 18.30
MELI: 11.07
AMZN: 5.81
PDD: 1.83
BABA: 1.67
LOW: -13.36

Where PDD (PDD) stands on P/B ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

PDD (PDD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: PDD	Industry group median
Price-to-Earnings Ratio (TTM)	8.55	20.61
Price-to-Sales Ratio (TTM)	0.26	0.73
Price-to-Book Ratio (MRQ)	1.83	2.24
Free Cash Flow Yield	61.71%	3.39%

Profitability

Return on Equity (TTM)

PDD (PDD) posts ROE of 25.40%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

PDD

Consumer Discretionary Distribution & Retail industry group

25.40%

Group distribution

Max: 63.82%
Q3: 31.67%
PDD: 25.40%
Median: 12.96%
Q1: 4.89%
Min: -29.94%

Largest peers

HD: 128.38%
TJX: 61.25%
MELI: 31.26%
PDD: 25.40%
AMZN: 24.29%
BABA: 9.22%
LOW: --

Where PDD (PDD) stands on ROE within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

PDD (PDD) keeps 21.62% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.

PDD

Consumer Discretionary Distribution & Retail industry group

21.62%

Group distribution

PDD: 21.62%
Max: 20.45%
Q3: 8.75%
Median: 3.25%
Q1: 0.49%
Min: -11.15%

Largest peers

PDD: 21.62%
AMZN: 12.22%
BABA: 10.12%
TJX: 9.40%
HD: 8.41%
LOW: 7.51%
MELI: 6.04%

Where PDD (PDD) stands on net margin within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

PDD (PDD) turns 18.42% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

PDD

Consumer Discretionary Distribution & Retail industry group

18.42%

Group distribution

Max: 23.15%
PDD: 18.42%
Q3: 11.08%
Median: 4.61%
Q1: 1.68%
Min: -8.71%

Largest peers

PDD: 18.42%
AMZN: 13.14%
HD: 11.93%
TJX: 11.77%
LOW: 11.07%
MELI: 6.91%
BABA: 1.02%

Where PDD (PDD) stands on operating margin within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

PDD (PDD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: PDD	Industry group median
Return on Equity (TTM)	25.40%	12.96%
Return on Assets (TTM)	10.33%	5.45%
Net Profit Margin (TTM)	21.62%	3.25%
Operating Profit Margin (TTM)	18.42%	4.61%
Gross Profit Margin (TTM)	55.98%	38.72%

Financial Strength

Current Ratio (MRQ)

PDD (PDD) has current ratio of 2.54, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.

PDD

Consumer Discretionary Distribution & Retail industry group

2.54

Group distribution

Max: 2.97
PDD: 2.54
Q3: 1.87
Median: 1.38
Q1: 1.03
Min: 0.46

Largest peers

PDD: 2.54
BABA: 1.28
AMZN: 1.18
MELI: 1.16
TJX: 1.14
LOW: 1.09
HD: 1.05

Where PDD (PDD) stands on current ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

PDD (PDD) has debt-to-equity ratio of 0.01, in the lower-leverage quartile for its industry. Borrowing is modest relative to equity compared with most peers, which can leave more flexibility through a cycle.

PDD

Consumer Discretionary Distribution & Retail industry group

0.01

Group distribution

Max: 3.27
Q3: 1.82
Median: 1.09
Q1: 0.67
PDD: 0.01
Min: 0.01

Largest peers

HD: 4.59
MELI: 1.70
TJX: 1.36
AMZN: 0.53
BABA: 0.25
PDD: 0.01
LOW: --

Where PDD (PDD) stands on debt-to-equity ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

PDD (PDD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: PDD	Industry group median
Current Ratio (MRQ)	2.54	1.38
Debt-to-Equity Ratio (MRQ)	0.01	1.09
Net Debt / EBITDA	-4.44	2.42

Dividends

Dividend Yield (TTM)

PDD (PDD) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

PDD

Consumer Discretionary Distribution & Retail industry group

0.00%

Group distribution

Max: 6.62%
Q3: 2.66%
PDD: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

HD: 2.84%
LOW: 2.26%
TJX: 1.14%
BABA: 0.93%
PDD: 0.00%
AMZN: 0.00%
MELI: 0.00%

Where PDD (PDD) stands on dividend yield within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

PDD (PDD) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

PDD

Consumer Discretionary Distribution & Retail industry group

0.00%

Group distribution

Max: 78.51%
Q3: 33.46%
PDD: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

HD: 65.55%
LOW: 40.57%
TJX: 33.07%
BABA: 17.12%
PDD: 0.00%
AMZN: 0.00%
MELI: 0.00%

Where PDD (PDD) stands on payout ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

PDD (PDD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: PDD	Industry group median
Dividend Yield (TTM)	0.00%	0.00%
Dividend Payout Ratio (TTM)	0.00%	0.00%