Latest Ratios: P/E Ratio 8.6x · EV/EBITDA 6.5x · 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 | $117.5B | $168.1B | $143.5B | $213.6B | $117.5B | $83.3B | $211.8B | $43.8B | $16.7B | — | — |
| Enterprise Value | $91.4B | $-9376897340 | $96.3B | $164.0B | $100.1B | $89.6B | $206.3B | $44.6B | $2.5B | — | — |
| P/E Ratio → | 8.59 | 1.74 | 1.28 | 3.56 | 3.72 | 10.72 | — | — | — | — | — |
| P/S Ratio | 1.85 | 0.39 | 0.36 | 0.86 | 0.90 | 0.89 | 3.56 | 1.45 | 1.27 | — | — |
| P/B Ratio | 2.00 | 0.40 | 0.46 | 1.14 | 1.00 | 1.11 | 3.52 | 1.78 | 0.88 | — | — |
| P/FCF | 7.54 | 1.59 | 1.19 | 2.28 | 18.36 | 3.27 | 7.52 | 2.96 | 2.15 | — | — |
| P/OCF | 7.46 | 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 | 6.46 | -0.10 | 0.88 | 2.76 | 3.07 | 10.68 | — | — | — | — | — |
| EV / EBIT | 6.67 | -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 | 11.6% | 57.5% | 78.4% | 28.1% | 26.9% | 9.3% | — | — | — | — | — |
| FCF Yield | 13.3% | 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 |
Cross-border regulatory policy shifts
Based on current market data, PDD trades at a P/E of 7.97, which appears significantly compressed compared to global e-commerce peers like MercadoLibre, suggesting that investors are applying a substantial jurisdictional discount to the company's earnings despite its historical growth profile and massive cash-rich balance sheet.
The valuation multiples suggest the market is pricing in a high probability of regulatory disruption rather than purely operational performance. Investors should monitor whether this discount persists as the company attempts to pivot its identity toward a more global, less China-centric entity.
As reported in financial statements, PDD's ROIC has trended downward from a peak of 12.9% in 2024Q2 to 7.2% in 2025Q4, indicating that the company's ability to generate incremental returns on its expanding capital base is currently under significant pressure from rising operational costs.
This decay in return on capital suggests that the aggressive scaling of the Temu segment is consuming capital at a rate that currently outpaces the marginal profitability of those new investments. Analysts should investigate whether this is a temporary phase of market entry or a permanent shift in the company's return profile.
According to recent quarterly filings, PDD's asset turnover has remained stagnant at approximately 0.20, which, when viewed alongside the shift in DPO from 212 days in 2023Q4 to 174 days in 2025Q4, suggests a tightening of the company's leverage over its supplier base.
The reduction in DPO indicates that the company may be settling with merchants more rapidly, potentially to maintain supply chain stability amidst intense competition. This shift warrants further investigation into whether the company is losing its historical bargaining power over its manufacturing partners.
Based on the latest balance sheet data, PDD maintains a current ratio of 2.45, which, as reported in financial statements, provides a substantial liquidity buffer that remains superior to many of its highly levered retail peers in the current volatile macroeconomic environment.
The company's liquidity position is exceptionally strong, effectively insulating it from short-term credit market fluctuations. This financial strength allows management to continue subsidizing international growth even if regulatory or competitive pressures temporarily impair the profitability of the core domestic business.
As indicated by the provided data, the P/E ratio is a frequently misapplied metric for PDD because it fails to account for the massive, non-operating cash hoard that distorts the earnings yield and obscures the true operational profitability of the underlying e-commerce platform.
Investors should prioritize EV/EBITDA or P/FCF metrics to strip away the impact of the company's cash-heavy balance sheet. Relying on P/E alone may lead to an inaccurate assessment of the company's valuation, as it treats the cash as if it were an operational asset rather than a dormant reserve.
Includes 30+ ratios · 10 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying PDD stock.
PDD Holdings Inc.'s current P/E ratio is 8.6x. 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 6.5x. 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 8.6x. 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.