PDD (PDD) Stock Analysis

October 26, 2026

This is a peer-relative look at PDD (PDD): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Consumer Discretionary Distribution & Retail peers, so every number reads in context rather than in isolation.

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 Receipt
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	112.51 billion USD
Currency	USD
Exchange	Nasdaq
Listing Date	July 26, 2018
Security Type	ADR

Price 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

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

Calendar-Year Returns

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Calendar-year total returns for PDD (PDD) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

PDD (PDD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: PDD	Industry group median
Total Return (1Y)	-40.70%	-4.30%
Total Return (3Y, Annualized)	-8.80%	9.57%
Total Return (5Y, Annualized)	-4.41%	-2.41%

Risk Profile

Drawdown History

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.

Return Distribution

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Distribution of monthly total returns for PDD (PDD) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

PDD (PDD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: PDD	Industry group median
Volatility (1Y, Annualized)	33.31%	46.90%
Beta (5Y)	-0.04	1.14
Max Drawdown (5Y)	-74.63%	-68.83%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. PDD is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

PDD (PDD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: PDD	Industry group median
Sharpe Ratio (1Y)	-1.35	-0.20
Sortino Ratio (1Y)	-1.77	-0.29

Profitability

ROE (TTM)

PDD (PDD) posts ROE of 22.75%, 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

22.75%

Group distribution

Max: 62.17%
Q3: 30.47%
PDD: 22.75%
Median: 14.86%
Q1: 6.52%
Min: -20.00%

Largest peers

HD: 104.30%
TJX: 62.17%
AMZN: 30.56%
MELI: 27.50%
PDD: 22.75%
BABA: 6.36%
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 Margin (TTM)

PDD (PDD) keeps 20.43% 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

20.43%

Group distribution

PDD: 20.43%
Max: 18.57%
Q3: 8.30%
Median: 3.37%
Q1: 1.06%
Min: -9.41%

Largest peers

PDD: 20.43%
AMZN: 17.44%
TJX: 9.73%
HD: 8.41%
LOW: 7.35%
BABA: 7.04%
MELI: 5.30%

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 Margin (TTM)

PDD (PDD) turns 24.71% of revenue into operating profit on operating margin, above the industry benchmark range. Core operations are retaining an unusually large share before interest and taxes, which points to pricing power or tight cost control if the margin is sustainable.

PDD

Consumer Discretionary Distribution & Retail industry group

24.71%

Group distribution

PDD: 24.71%
Max: 21.57%
Q3: 11.49%
Median: 6.15%
Q1: 2.69%
Min: -6.28%

Largest peers

PDD: 24.71%
AMZN: 13.69%
LOW: 13.37%
HD: 12.86%
TJX: 10.91%
BABA: 7.30%
MELI: 6.72%

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 Metrics

PDD (PDD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: PDD	Industry group median
ROE (TTM)	22.75%	14.86%
ROA (TTM)	10.01%	5.32%
Net Margin (TTM)	20.43%	3.37%
Operating Margin (TTM)	24.71%	6.15%
Gross Margin (TTM)	56.32%	38.81%

Growth

Revenue Growth

PDD (PDD) grew revenue 9.65%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

PDD (PDD): Revenue Growth across different time periods, set against Consumer Discretionary Distribution & Retail industry-group medians.

EPS Growth

PDD (PDD) grew earnings per share -11.79%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

PDD (PDD): EPS Growth across different time periods, set against Consumer Discretionary Distribution & Retail industry-group medians.

Growth Metrics

PDD (PDD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: PDD	Industry group median
Revenue Growth (YoY)	9.65%	5.18%
Revenue Growth (3Y CAGR)	49.00%	3.32%
EPS Growth (YoY)	-11.79%	0.00%
EPS Growth (3Y CAGR)	45.15%	-5.08%

Financial Strength

Current Ratio (MRQ)

PDD (PDD) has current ratio of 2.62, 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

2.62

Group distribution

PDD: 2.62
Max: 2.62
Q3: 1.79
Median: 1.36
Q1: 1.02
Min: 0.49

Largest peers

PDD: 2.62
BABA: 1.36
TJX: 1.15
MELI: 1.12
LOW: 1.11
HD: 1.08
AMZN: 1.03

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 / Equity (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: 3.93
Q3: 2.05
Median: 1.25
Q1: 0.71
PDD: 0.01
Min: 0.01

Largest peers

HD: 3.80
MELI: 1.69
TJX: 1.34
AMZN: 0.46
BABA: 0.24
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 Metrics

PDD (PDD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: PDD	Industry group median
Current Ratio (MRQ)	2.62	1.36
Debt / Equity (MRQ)	0.01	1.25
Net Debt / EBITDA	-4.56	2.62

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: 5.34%
Q3: 2.62%
PDD: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

BABA: 7.11%
LOW: 2.37%
HD: 1.41%
TJX: 1.23%
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: 72.73%
Q3: 31.36%
PDD: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

HD: 64.80%
LOW: 41.00%
TJX: 32.50%
BABA: 25.44%
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.

Dividend Metrics

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%

Valuation

P/E Ratio (TTM)

PDD (PDD) trades at P/E ratio of 8.89, 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

8.89

Group distribution

Max: 39.05
Q3: 25.20
Median: 18.67
Q1: 12.65
PDD: 8.89
Min: 4.22

Largest peers

MELI: 49.23
TJX: 26.86
BABA: 24.13
HD: 21.45
AMZN: 19.95
LOW: 16.79
PDD: 8.89

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.

P/S Ratio (TTM)

PDD (PDD) trades at 0.25 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

0.25

Group distribution

Max: 3.92
Q3: 1.79
Median: 0.69
Q1: 0.27
PDD: 0.25
Min: 0.03

Largest peers

AMZN: 3.45
MELI: 2.61
TJX: 2.56
HD: 1.89
LOW: 1.23
PDD: 0.25
BABA: 0.24

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.

P/B Ratio (MRQ)

PDD (PDD) trades at 1.66 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

1.66

Group distribution

Max: 10.32
Q3: 4.92
Median: 1.89
PDD: 1.66
Q1: 1.03
Min: -4.01

Largest peers

HD: 19.21
TJX: 15.00
MELI: 11.71
AMZN: 4.85
PDD: 1.66
BABA: 1.48
LOW: -14.99

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 Metrics

PDD (PDD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: PDD	Industry group median
P/E Ratio (TTM)	8.89	18.67
P/S Ratio (TTM)	0.25	0.69
P/B Ratio (MRQ)	1.66	1.89
Free Cash Flow Yield (TTM)	66.34%	3.94%