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STOCK COMPARISON

Alibaba Group Holding vs PDD Holdings Inc.: Fair Value & Quality

Both stocks run through our valuation models. Here is how Alibaba Group Holding (BABA) and PDD Holdings Inc. (PDD) compare, as of Sep 9, 2026.

As of Sep 9, 2026, Fair Value Calculator sees PDD Holdings Inc. as the more attractively valued of the two: Alibaba Group Holding trades at $113 versus a fair value of $137 (+21%), while PDD Holdings Inc. trades at $82.21 versus $226 (+175%).
Alibaba Group Holding
BABA · USD · Consumer Discretionary
+21%
upside to fair value
undervalued
Price$113
Fair Value$137
Quality48/100
PDD Holdings Inc.
PDD · USD · Consumer Discretionary
+175%
upside to fair value
undervalued
Price$82.21
Fair Value$226
Quality66/100
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Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

Alibaba Group HoldingPDD Holdings Inc.
Valuation
18.2×P/E (TTM)8.7×
—P/S (TTM)1.87×
—P/B1.99×
—EV/EBITDA6.7×
0.49×PEG0.80×
+21.3%Fair value upside+174.6%
0.9%Dividend yield—
$7.24Dividend per share—
Profitability
1%Operating margin18%
0.79×EBIT margin trend (5Y)—
9%Return on equity25%
2%Return on assets10%
Growth
3%Revenue growth (YoY)11%
5.6%Avg. growth/yr (3Y)49.0%
7.4%Avg. growth/yr (5Y)48.7%
−3.8%Value creation/yr+64.7%
Balance & size
6.1×Interest coverage (EBIT/interest)—
0.22×Debt / equity0.01×
$276BMarket cap$123B
expensiveGrowth qualityhealthy

PDD Holdings Inc. leads: 1 to 9 metric wins.

Dash = 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 Holdingof which business quality 47 · market factors 39 PDD Holdings Inc.of which business quality 69 · market factors 34
ProfitabilityMargins and returns on capital today
41
76
Quality GrowthAre margins and returns improving?
30
22
CashflowEarnings quality: real cash, not paper profit
13
81
Fin. StrengthBalance sheet, leverage, solvency risk
52
96
InvestmentDisciplined investing over empire-building
76
33
Low VolatilityCalm price path (market factor)
69
79
MomentumPrice trend over the last 3–12 months (market factor)
31
21
52W MomentumDistance to the 52-week high (market factor)
18
6
Net IssuanceBuybacks instead of dilution
92
76

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 familyAlibaba Group HoldingPrice $113PDD Holdings Inc.Price $82.21
DCF Models+220%above the price$362+2419%above the price$2,071
Earnings-Based+1145%above the price$1,410+2826%above the price$2,406
Dividend Discount+137%above the price$269n/a
Multiples+352%above the price$511+1178%above the price$1,051
Asset-Based+161%above the price$295+138%above the price$195
Growth DCFn/a+2063%above the price$1,778
Economic Profit+199%above the price$338+983%above the price$890
Growth Earnings+1575%above the price$1,897+3785%above the price$3,194
Minimum+137%above the price$269+138%above the price$195
Maximum+1575%above the price$1,897+3785%above the price$3,194
Median+220%above the price$362+2063%above the price$1,778
Geometric mean+376%above the price$539+1438%above the price$1,265

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Alibaba Group Holding: 0 of 17 models see the stock below the current price.

PDD Holdings Inc.: 0 of 24 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Alibaba Group Holding
Bear $108Fair Value $137Bull $259
$113 = current price (white tick)
PDD Holdings Inc.
Bear $169Fair Value $226Bull $495
$82.21 = current price (white tick)

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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+21% · above median

PDD Holdings Inc. · Consumer Discretionary

Quality score66 · Top 25%
Fair value upside+175% · Top 25%

Bottom line

As of Sep 9, 2026, Fair Value Calculator sees PDD Holdings Inc. as the more attractively valued of the two: Alibaba Group Holding trades at $113 versus a fair value of $137 (+21%), while PDD Holdings Inc. trades at $82.21 versus $226 (+175%).

PDD Holdings Inc. has the higher quality score (66/100).

See the full analysis →
Alibaba Group Holding · PDD Holdings Inc.

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