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Pinduoduo Inc. (P1DD34) Fair Value & Analysis

Consumer Cyclical · BR · Market cap R$640B

PI Pinduoduo Inc. P1DD34 · SA
PriceR$46.00
Fair ValueR$92.05
Upside+100.1%
Quality67/100
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Strengths

Trades 100% below our fair value of R$92.05
Healthy Growth
Highly profitable · 21.6% net margin
Low debt · generates free cash flow
Healthy Growth
Highly profitable · 21.6% net margin
Low debt · generates free cash flow
Ranks above peers (13/14)
Wide moat 78/100
Evidence: High Range R$68.94 – R$157.10 Share as image

Fair value as of: Aug 19, 2026

From 24 valuation models · updated 2 days ago

Fair value updated Aug 19, 2026, revised from R$91.65 to R$92.05 (+0.4%) since Aug 13, 2026. Share price +7.5% over the past month.

A solid business, screening 100% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (R$68.94). The market is more pessimistic than our downside scenario.
  • Solid quality (67/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (R$68.94 to R$157.10) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

R$83.80 R$13.26 Fair Value R$92.05 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 19, 2026.

How to read this chart

60‑month range R$13.26 – R$83.80 · fair‑value band R$68.94 – R$157.10 · the R$46.00 price screens below the R$92.05 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 19, 2026.

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Analysis

Pinduoduo Inc. (P1DD34) currently trades at R$46.00, while our model-based Fair Value estimate is R$92.05, implying the stock looks roughly 100.1% undervalued today. The Quality Score stands at 67/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Pinduoduo Inc. generated revenue of R$442B at a net margin of 21.6%. Revenue grew 11.0% year over year. It earns a return on equity of 25.4%. Net debt stands at R$5.4B. Fundamentals as of Aug 19, 2026

Our scenario range runs from R$68.94 (bear case) to R$157.10 (bull case); at R$46.00, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 39% below its 52-week high and 12% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -41% fair-value upside, at 100%, P1DD34 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF R$132.75 R$268.38 R$496.16 80
Residual Income R$50.23 R$67.76 R$417.99 76
Rev-Margin DCF R$68.48 R$103.52 R$177.88 74
All 24 models by family
DCF Models
FCF DCF R$140.38 R$221.67 R$487.45 38
Owner Earnings R$125.98 R$284.90 R$633.45 31
5Y Revenue Exit R$63.45 R$91.24 R$148.31 39
5Y EBITDA Exit R$90.04 R$145.03 R$252.55 41
5Y P/E Exit R$131.34 R$283.90 R$491.82 38
10Y Revenue Exit R$84.78 R$146.90 R$176.83 36
10Y EBITDA Exit R$105.84 R$205.51 R$372.49 37
10Y P/E Exit R$136.66 R$296.54 R$559.49 35
Earnings-Based
Graham-Dodd R$47.47 R$331.05 R$464.57 54
Lynch FV R$171.03 R$244.33 R$317.63 50
PEG = 1.0 R$171.03 R$244.33 R$317.63 46
EPV R$67.48 R$78.04 R$87.42 59
Multiples
P/E Multiple R$115.18 R$153.58 R$191.97 63
P/S Multiple R$27.31 R$36.41 R$45.51 58
P/B Multiple R$87.45 R$116.60 R$145.75 55
EV/EBIT R$97.40 R$127.31 R$157.23 53
EV/EBITDA R$69.38 R$89.95 R$110.53 54
EV/Revenue R$33.14 R$44.06 R$54.98 43
Asset-Based
NCAV (Graham) R$14.57 R$19.53 R$29.15 50
Growth DCF
Growth DCF R$132.75 R$268.38 R$496.16 80
Rev-Margin DCF R$68.48 R$103.52 R$177.88 74
Economic Profit
Residual Income R$50.23 R$67.76 R$417.99 76
ROIC Compounder R$90.44 R$144.40 R$199.81 72
Growth Earnings
Growth-Adj P/E R$227.03 R$324.33 R$421.63 68

Widest divergence: Growth Earnings (R$324.33) versus Asset-Based (R$19.53). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) R$442B
Revenue growth (YoY) +11.0%
Net margin 21.6%
Return on equity 25.4%
Free cash flow R$106B FY2025
P/E ratio 9.3
More key figures
Operating margin 18.4%
EPS (TTM) R$4.92
EPS growth (YoY) -14.9%
Net debt R$5.4B FY2021

Figures from reported company fundamentals · as of Aug 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 69 · Market factors (momentum, volatility) 30

Profitability 77
Margins and returns on capital today
Quality Growth 30
Are margins and returns improving?
Cashflow 80
Earnings quality: real cash, not paper profit
Fin. Strength 91
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 59
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 12
Distance to the 52-week high (market factor)
Net Issuance 73
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

PDD Holdings Inc., a multinational commerce group that owns and operates a portfolio of businesses. The company operates Pinduoduo platform, which provides various product categories and interactive shopping experiences; and Temu, an online platform, which enables merchants to streamline their manufacturing and commercial operations.

Full company description

PDD Holdings Inc., a multinational commerce group that owns and operates a portfolio of businesses. The company operates Pinduoduo platform, which provides various product categories and interactive shopping experiences; and Temu, an online platform, which enables merchants to streamline their manufacturing and commercial operations. The company was formerly known as Pinduoduo Inc. and changed its name to PDD Holdings Inc. in February 2023. PDD Holdings Inc. was incorporated in 2015 and is based in Dublin, Ireland.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Pinduoduo Inc. reported revenue of R$432B in FY2025 versus R$93.9B in FY2021, a compound +46.4%/yr. Reported net income was R$99.4B in FY2025, compounding +89.1%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
R$432B
Latest YoY
+9.7%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+49.0%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+48.7%
Avg. growth/yr (7Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+64.7%
Revenue +46.4%/yr
FY21 R$93.9B
FY22 R$131B
FY23 R$248B
FY24 R$394B
FY25 R$432B
Net income +89.1%/yr
FY21 R$7.8B
FY22 R$31.5B
FY23 R$60.0B
FY24 R$112B
FY25 R$99.4B

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Cite: Fair Value Calculator (2026). "Pinduoduo Inc. Fair Value". https://www.fairvalue-calculator.com/stock/P1DD34

Peer Group

Internet Retail · 107 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 67 · Top 25%
Fair Value upside +98% · Top 25%
Return on equity (TTM) 25% · Top 25%
Return on assets 10% · Top 25%
Net margin (TTM) 22% · Top 25%
Operating margin (TTM) 18% · Top 25%
Revenue growth 11% · Above median

Valuation Multiples vs Internet Retail median · lower = cheaper

P/E (TTM) 9.3× · Cheaper than 75% of peers
P/B 1.54× · Cheaper than median
P/S (TTM) 1.45× · Pricier than median
P/FCF 1.2× · Cheaper than median
EV/EBITDA 5.5× · Cheaper than median
PEG 0.78× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 33
FUTURE55 · sector 52
PAST100 · sector 9
HEALTH100 · sector 95
DIVIDEND0 · sector 37

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Internet Retail stocks, each showing price versus our Fair Value estimate (as of Aug 19, 2026).

Stock Price Fair Value vs Fair Value
Amazon.com, Inc 1AMZN €231.35 €79.98 -65%
Alibaba Group BABA $125.22 $76.00 -39%
PDD Holdings PDD $89.04 $224.27 +152%
MercadoLibre, Inc MELI $1,828 $798.98 -56%
DoorDash, Inc DASH $216.35 $38.64 -82%
Sea Limited SE $128.11 $52.70 -59%
eBay Inc EBAY $102.31 $60.13 -41%
JD.com, Inc JD €27.00 €31.73 +18%
Coupang, Inc CPNG $16.32 $2.79 -83%
Allegro.eu S.A ALE 46.44 PLN 32.94 PLN -29%

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Frequently asked questions

Is Pinduoduo Inc. (P1DD34) overvalued or undervalued?
As of Aug 19, 2026, our model estimates a fair value of R$92.05 versus a price of R$46.00, about +100% (undervalued).
What is the fair value of P1DD34?
Our model-based fair value for Pinduoduo Inc. is R$92.05 (as of Aug 19, 2026), built from audited fundamentals. The current price: R$46.00.
What is the quality score of P1DD34?
Pinduoduo Inc. has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Pinduoduo Inc. (P1DD34)?
Pinduoduo Inc. reported trailing-twelve-month revenue of about R$442B (latest available figure, as of Aug 19, 2026).
What is the net profit margin of P1DD34?
The net profit margin of Pinduoduo Inc. is about 21.6%, meaning it keeps roughly 21.6% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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