| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 90 | 8.5x | 17.4x | Top tier | |
Growth | 85 | 10.0% | 7.1% | Top tier | |
Quality | 93 | 18.3% | 4.5% | Top tier | |
Safety | 90 | — | 2.6x | Top tier | |
Capital Return | 46 | 0.00% | 0.18% | Around median | |
Momentum | 11 | -39.6% | 1.3% | Bottom tier | |
Sentiment | 68 | 17 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
0% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.28% as of 2026-10-02. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
PDD Holdings operates an e-commerce ecosystem combining platforms serving the Chinese market with global businesses including Temu, and generates revenue primarily from online marketing services and transaction services. The company's strategy focuses on supporting merchants, improving governance, and developing supply chains and order fulfillment, with an emphasis on the 100 billion yuan support initiative, free shipping to villages, and the directly owned brands model, while management affirmed that e-commerce remains its core business.
In Q2 fiscal 2026, revenue increased 8% year over year to 112.4 billion yuan. Revenue from online marketing services and others reached 57.6 billion yuan, or about 51% of the total, while transaction services revenue increased 13% to 54.7 billion yuan, or about 49% of the total. With cost of revenues of 48.0 billion yuan, calculated gross profit was approximately 64.4 billion yuan, with a gross margin of about 57.3%.
GAAP operating profit increased 8% to 27.8 billion yuan in Q2 fiscal 2026, but net income attributable to shareholders declined 12% to 27.2 billion yuan, and diluted earnings per ADS fell to 18.45 yuan from 20.75 yuan. Adjusted operating margin was 26% versus 27% a year earlier, while operating activities generated cash flow of 25.7 billion yuan, and cash, cash equivalents, and short-term investments reached 456.4 billion yuan as of June 30, 2026.
The analyst consensus on PDD Holdings is Neutral, with an average price target of 106.33 dollars and a wide range between 80 and 136 dollars. The average target is about 24% below the 52-week range high of 139.41 dollars, while the highest target is close to that high, reflecting divided views on the impact of slowing revenue and regulatory and competitive pressures versus strong liquidity and transaction services growth. The provided data do not include a usable price-to-earnings ratio, so the stock's valuation cannot be anchored to a reliable earnings multiple.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Q2 fiscal 2026 revenue reached approximately 112.4 billion yuan, up 8% year over year. GAAP operating profit increased 8% to 27.8 billion yuan, but net income attributable to shareholders declined 12% to 27.2 billion yuan. Diluted earnings per ADS were 18.45 yuan versus 20.75 yuan in the corresponding period, while adjusted operating margin was 26% versus 27%.
Q2 fiscal 2026 revenue came from two streams of similar size. Online marketing services and others generated 57.6 billion yuan, compared with 55.7 billion yuan a year earlier. Transaction services generated 54.7 billion yuan, up 13%, making it the faster-growing driver during the quarter.
In July 2026, the European Union began applying a temporary tariff on low-value cross-border shipments. Management said on August 24, 2026 that cross-border orders in affected markets would face lower fulfillment efficiency and higher costs, with a significant impact on those parts of the business in the short term. The company is responding by onboarding more local merchants and expanding local warehousing and fulfillment, without providing a numerical estimate of the tariffs' impact on revenue or orders.
Automated analysis for informational purposes only — not investment advice.
The program focuses on reducing fees, supporting merchants, and improving supply chains and governance rather than maximizing short-term profit. In Q2 fiscal 2026, management said some manufacturers cut production cycles in half and that the Pinduoduo Premium initiative reached dozens of specialized agricultural regions. Free-shipping-to-villages networks also expanded to more than 10 provinces and municipalities, and daily deliveries to villages in Shandong exceeded 100 thousand parcels.
Management said on August 24, 2026 that the initial launch during the previous six months was slower than expected due to external factors, but confirmed that operations had entered full execution. The model selectively focuses on categories where the platform and supply chain have an advantage, with manufacturers participating in product planning, research and development, quality standards, and marketing tests. These products will operate alongside products from third-party merchants, and the company did not provide a financial target or a specific timetable for their revenue contribution.
Cash, cash equivalents, and short-term investments reached 456.4 billion yuan as of June 30, 2026. Operating activities generated 25.7 billion yuan in Q2 fiscal 2026, up from 21.6 billion yuan in the corresponding period. This provides internal funding for investments in research and development, governance, supply chains, and fulfillment, while the impact of this spending remains evident in the 12% decline in net income during the quarter.
