Latest Ratios: P/E Ratio 8.0x · EV/EBITDA 5.9x · ROE 26.9%. (2016–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $110.4B | $168.1B | $143.5B | $213.6B | $117.5B | $83.3B | $211.8B | $43.8B | $16.7B | — | — |
| Enterprise Value | $84.0B | $-9376897340 | $96.3B | $164.0B | $100.1B | $89.6B | $206.3B | $44.6B | $2.5B | — | — |
| P/E Ratio → | 7.98 | 1.74 | 1.28 | 3.56 | 3.72 | 10.72 | — | — | — | — | — |
| P/S Ratio | 1.72 | 0.39 | 0.36 | 0.86 | 0.90 | 0.89 | 3.56 | 1.45 | 1.27 | — | — |
| P/B Ratio | 1.86 | 0.40 | 0.46 | 1.14 | 1.00 | 1.11 | 3.52 | 1.78 | 0.88 | — | — |
| P/FCF | 7.01 | 1.59 | 1.19 | 2.28 | 18.36 | 3.27 | 7.52 | 2.96 | 2.15 | — | — |
| P/OCF | 6.93 | 1.57 | 1.18 | 2.27 | 16.70 | 2.89 | 7.51 | 2.95 | 2.14 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | -0.02 | 0.24 | 0.66 | 0.77 | 0.95 | 3.47 | 1.48 | 0.19 | — | — |
| EV / EBITDA | 5.87 | -0.10 | 0.88 | 2.76 | 3.07 | 10.68 | — | — | — | — | — |
| EV / EBIT | 6.06 | -0.08 | 0.73 | 2.28 | 2.76 | 8.20 | — | — | — | — | — |
| EV / FCF | — | -0.09 | 0.80 | 1.75 | 15.64 | 3.51 | 7.33 | 3.02 | 0.32 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 56.3% | 56.3% | 60.9% | 63.0% | 75.9% | 66.2% | 67.6% | 79.0% | 77.9% | 58.6% | -14.5% |
| Operating Margin | 21.6% | 21.6% | 27.5% | 23.7% | 23.3% | 7.3% | -15.8% | -28.3% | -82.3% | -34.2% | -56.7% |
| Net Profit Margin | 22.7% | 22.7% | 28.5% | 24.2% | 24.2% | 8.3% | -12.1% | -23.1% | -77.9% | -30.1% | -57.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 26.9% | 26.9% | 44.9% | 39.4% | 32.7% | 11.5% | -16.9% | -32.1% | -102.0% | -67.3% | -81.9% |
| ROA | 17.2% | 17.2% | 26.4% | 20.5% | 15.1% | 4.6% | -6.1% | -11.7% | -36.2% | -7.0% | -16.5% |
| ROIC | 27.7% | 27.7% | 40.3% | 37.0% | 25.1% | 7.6% | -17.5% | -42.4% | -576.7% | — | — |
| ROCE | 25.3% | 25.3% | 42.4% | 37.2% | 29.3% | 8.5% | -17.8% | -34.8% | -107.8% | -76.3% | -80.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.03 | 0.05 | 0.14 | 0.17 | 0.28 | 0.27 | — | — | — |
| Debt / EBITDA | 0.06 | 0.06 | 0.10 | 0.17 | 0.52 | 1.52 | — | — | — | — | — |
| Net Debt / Equity | — | -0.43 | -0.15 | -0.27 | -0.15 | 0.08 | -0.09 | 0.04 | -0.75 | -2.54 | -3.70 |
| Net Debt / EBITDA | -1.85 | -1.85 | -0.43 | -0.83 | -0.53 | 0.75 | — | — | — | — | — |
| Debt / FCF | — | -1.68 | -0.39 | -0.53 | -2.72 | 0.25 | -0.19 | 0.06 | -1.83 | -9.98 | -1.50 |
| Interest Coverage | — | — | — | 1635.04 | 703.04 | 8.88 | -12.39 | -58.54 | — | — | — |
Net cash position: cash ($182.8B) exceeds total debt ($5.4B)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.45 | 2.45 | 2.21 | 1.93 | 1.85 | 1.72 | 1.78 | 1.60 | 1.66 | 1.08 | 1.24 |
| Quick Ratio | 2.45 | 2.45 | 2.20 | 1.93 | 1.85 | 1.72 | 1.76 | 1.60 | 1.66 | 1.08 | 1.24 |
| Cash Ratio | 2.34 | 2.34 | 1.76 | 1.42 | 1.28 | 0.99 | 1.04 | 0.90 | 0.89 | 0.26 | 1.14 |
| Asset Turnover | — | 0.68 | 0.78 | 0.71 | 0.55 | 0.52 | 0.37 | 0.40 | 0.30 | 0.13 | 0.29 |
| Inventory Turnover | — | — | 96.23 | — | — | 2234.30 | 11.22 | — | — | — | — |
| Days Sales Outstanding | — | 12.95 | 11.26 | 10.95 | 9.37 | 13.51 | 23.97 | 35.80 | 35.24 | 111.09 | 7.43 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 12.5% | 57.5% | 78.4% | 28.1% | 26.9% | 9.3% | — | — | — | — | — |
| FCF Yield | 14.3% | 62.9% | 84.3% | 43.8% | 5.4% | 30.6% | 13.3% | 33.8% | 46.5% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $1.5B | $1.5B | $1.5B | $1.4B | $1.4B | $1.2B | $1.2B | $742M | $861M | $861M |
Includes 30+ ratios · 10 years · Updated daily
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Quick answers to the most common questions about buying PDD stock.
PDD Holdings Inc.'s current P/E ratio is 8.0x. The historical average is 4.2x. This places it at the 80th percentile of its historical range.
PDD Holdings Inc.'s current EV/EBITDA is 5.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.3x.
PDD Holdings Inc.'s return on equity (ROE) is 26.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -14.5%.
Based on historical data, PDD Holdings Inc. is trading at a P/E of 8.0x. This is at the 80th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
PDD Holdings Inc. has 56.3% gross margin and 21.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
PDD Holdings Inc.'s Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Margin sustainability amid hyper-growth
Extreme Discount to Growth Peers
PDD trades at a forward P/E of 1.18, a profound discount to peers like Sea Limited (44.77) and MercadoLibre (50.94), suggesting the market is pricing in severe risk to its growth trajectory or earnings quality.
The valuation gap is stark when compared to both domestic peers like Alibaba (17.07 P/E) and global growth platforms. This discount appears to reflect a combination of jurisdictional risk, concerns over the sustainability of Temu's unit economics, and the market's skepticism about the company's opaque capital allocation. The low multiple implies that the market assigns minimal value to PDD's future growth, effectively pricing it as a mature, low-growth entity despite its recent expansion.
Margin Compression from Strategic Shift
Gross margins have contracted from a peak of 65.3% in 2024Q2 to 57.3% in 2026Q2, a trend that appears to reflect the rising cost mix of the international Temu business and increased competitive subsidies.
The decline in gross margin is a direct consequence of the strategic pivot towards the lower-margin, logistics-intensive 'Fully Managed' international model. While the core domestic platform remains highly profitable, the blended margin is being diluted by this expansion. The operating margin's compression from 33.6% to 24.7% over the same period further indicates that sales and marketing expenses are scaling faster than revenue, eroding operating leverage.
Declining Returns on Expanding Capital Base
ROIC has fallen from a peak of 12.9% in 2024Q2 to 7.4% in 2026Q2, indicating that the massive accumulation of capital is generating diminishing incremental returns as the business matures and expands internationally.
The decline in ROIC is driven by both margin compression and a significant expansion of the capital base, primarily through retained earnings. While the absolute level of return remains healthy, the trend suggests that the company's most profitable growth phase in its core market may be behind it. The challenge for management is to deploy the growing cash hoard into new ventures that can replicate the high returns of the original Pinduoduo platform.
Leverage from Extended Supplier Terms
Days Payable Outstanding (DPO) has consistently exceeded 170 days, a level that appears to provide PDD with a significant, interest-free source of financing from its merchant base.
The extremely high DPO is a key feature of PDD's capital-light model, effectively allowing it to use supplier capital to fund its operations and growth. This is a structural advantage over peers like JD.com, which carries significant inventory. However, the sustainability of these terms depends on PDD's continued ability to provide merchants with high-volume, predictable demand. Any erosion in merchant confidence could lead to a rapid tightening of these payment terms, creating a significant working capital shock.
The Misapplied Current Ratio
The current ratio of 2.62 is commonly misapplied to PDD, as it obscures the fact that the vast majority of current assets are excess cash hoards unrelated to operational liquidity needs.
For a platform business with minimal inventory and high DPO, the current ratio is a misleading indicator of short-term health. The ratio is inflated by a cash position that appears disproportionate to operational requirements, as highlighted in prior balance sheet analysis. A more relevant metric would be the cash conversion cycle, which is negative due to the extended DPO, or a focus on operating cash flow generation relative to the core business's needs, rather than the static liquidity buffer.