Is Alibaba Group Holding or PDD Holdings more undervalued?

As of Oct 30, 2026, Alibaba Group Holding is at +23.1% to fair value and PDD Holdings at +200.0%. PDD Holdings is the more undervalued of the two. Model-based estimate, not financial advice.

Which has higher quality, Alibaba Group Holding or PDD Holdings?

Alibaba Group Holding has a quality score of 48/100 and PDD Holdings 67/100. PDD Holdings leads on quality.

STOCK COMPARISON

Alibaba Group Holding vs PDD Holdings: Fair Value & Quality

Both stocks run through our valuation models. Here is how Alibaba Group Holding (BABA) and PDD Holdings (PDD) compare, as of Oct 30, 2026.

As of Oct 30, 2026, Fair Value Calculator sees PDD Holdings as the more attractively valued of the two: Alibaba Group Holding trades at $98.04 versus a fair value of $121 (+23.1%), while PDD Holdings trades at $78.61 versus $236 (+200.0%).

Alibaba Group Holding

BABA · USD · Consumer Discretionary

+23.1%

upside to fair value

undervalued

Price$98.04

Fair Value$121

Quality48/100

Fair ValueQualityUptrend

PDD Holdings

PDD · USD · Consumer Discretionary

+200.0%

upside to fair value

undervalued

Price$78.61

Fair Value$236

Quality67/100

Fair ValueQualityUptrend

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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

Alibaba Group HoldingPDD Holdings

Valuation

24.1×P/E (TTM)8.9×

1.6×Forward P/E6.3×

26.3×Median P/E at FY-end (10 FY, reported earnings)n/a

n/aP/S (TTM)1.72×

n/aP/B1.87×

n/aEV/EBITDA6.1×

0.51×PEG0.69×

+23.1%Fair value upside+200.0%

1.0%Dividend yieldn/a

$7.24Dividend per sharen/a

Profitability

7.3%Operating margin24.7%

0.79×EBIT margin trend (5Y)n/a

6.4%Return on equity22.8%

5.5%Return on assets15.5%

Growth

8.6%Revenue growth (YoY)8.1%

5.6%Avg. growth/yr (3Y)49.0%

7.4%Avg. growth/yr (5Y)48.7%

−3.7%Value creation/yr+86.5%

Balance & size

6.1×Interest coverage (EBIT/interest)n/a

0.22×Debt / equity0.01×

$249BMarket cap$117B

expensiveGrowth qualityhealthy

Alibaba Group Holding, median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings: 26.3.

Forward P/E: price divided by the analyst consensus for the first fiscal year that has not started yet. The current year carries special items from quarters already reported.

PDD Holdings leads: 1 to 9 metric wins.

n/a = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Alibaba Group Holding PDD Holdings

ProfitabilityHow much profit the company makes from its sales and capital

Quality GrowthAre margins and returns getting better?

CashflowDo the profits arrive as real cash?

Financial strengthDebt, balance sheet and risk of trouble

InvestmentDoes it invest with discipline instead of growing at any price?

Low VolatilityHow calm the share price moves, does not count

MomentumPrice trend of the last 3 to 12 months, does not count

Near the 52-week highDistance to the 52-week high, does not count

New sharesBuys back shares or issues new ones?

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model family	Alibaba Group HoldingPrice $98.04	PDD HoldingsPrice $78.61
DCF Models	−75.1%below the price$24.37	+286.2%above the price$304
Earnings-Based	+108.3%above the price$204	+360.1%above the price$362
Dividend Discount	−53.4%below the price$45.74	n/a
Multiples	−25.3%below the price$73.24	+101.0%above the price$158
Asset-Based	−67.2%below the price$32.13	−59.2%below the price$32.11
Growth DCF	n/a	+228.9%above the price$259
Economic Profit	−45.9%below the price$53.00	+65.2%above the price$130
Growth Earnings	+180.3%above the price$275	+510.8%above the price$480
Matching families	6 of 8
Minimum	−75.1%below the price$24.37	−59.2%below the price$32.11
Maximum	+180.3%above the price$275	+510.8%above the price$480
Median	−35.6%below the price$63.12	+193.6%above the price$231
Geometric mean	−24.0%below the price$74.47	+129.8%above the price$181
Ahead family by family	0 of 6	6 of 6

Minimum, maximum, median and geometric mean only use the families both stocks have (matching families: 6 of 8), so a family without a value on one side does not distort the comparison. Ahead in a family is the stock whose fair value there sits higher relative to its price. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Family by family: PDD Holdings is ahead in 6 of 6 shared families, Alibaba Group Holding in none.

Alibaba Group Holding: 11 of 17 models see the stock below the current price.

PDD Holdings: 3 of 24 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

Alibaba Group Holding

Price $98.04

Fair Value $121

Bear $100Bull $171

PDD Holdings

Price $78.61

Fair Value $236

Bear $126Bull $419

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Alibaba Group Holding · Consumer Discretionary

Quality score48 · below median

Fair value upside+23.1% · above median

PDD Holdings · Consumer Discretionary

Quality score67 · Top 25%

Fair value upside+200.0% · Top 25%

Bottom line

PDD Holdings has the higher quality score (67/100).

Open PDD Holdings live analysis →

Alibaba Group Holding · PDD Holdings

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.