PDD HoldingsMEX:PDDN +8.20%64 Debt-to-EBITDA is 0.07 as of Mar. 2026, which is 13% below its 10-year median of 0.08. GuruFocus rates MEX:PDDN with a GF Score™ of 64/100 and a GF Value™ of MXN2,696.17 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 898 Retail - Cyclical companies, PDD Holdings ranks better than 98% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for PDD Holdings's Debt-to-EBITDA or its related term are showing as below:
MEX:PDDN'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -2.97 Med: 0.08 Max: 1.02
Current: 0.04
During the past 10 years, the highest Debt-to-EBITDA Ratio of PDD Holdings was 1.02. The lowest was -2.97. And the median was 0.08.
MEX:PDDN's Debt-to-EBITDA is ranked better than 98% of 898
companies
in the Retail - Cyclical industry
Industry Median: 2.365
vs MEX:PDDN: 0.04
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
PDD Holdings Debt-to-EBITDA Related Terms
PDD Holdings Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for PDD Holdings's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:PDDN vs MELI, DASH, SE: Debt-to-EBITDA Comparison
For the Internet Retail subindustry, PDD Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PDD Holdings Debt-to-EBITDA vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, PDD Holdings's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where PDD Holdings's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
PDD Holdings (MEX:PDDN) has a Debt-to-EBITDA of 0.07 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on PDD Holdings. This is 13% below median its historical median of 0.08. According to the industry distribution chart, PDD Holdings ranks #18 out of 898 companies in the Retail - Cyclical industry, placing it in the top 2%.
Is PDD Holdings' Debt-to-EBITDA too high?
PDD Holdings' current Debt-to-EBITDA of 0.07 is 13% below median its 10-year median of 0.08. The Retail - Cyclical industry median Debt-to-EBITDA is 2.37. PDD Holdings' value of 0.07 is 97% below this industry median. Based on the distribution chart, PDD Holdings ranks #18 out of 898 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, PDD Holdings has a GF Score™ of 64/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PDD Holdings' Debt-to-EBITDA compare to MELI and DASH?
According to the Retail - Cyclical industry distribution chart, PDD Holdings ranks #18 out of 898 companies for Debt-to-EBITDA. This places PDD Holdings in the top 2% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 2.37. PDD Holdings' value of 0.07 is 97% below this benchmark. While the company's 10-year median is 0.08 vs. the industry median of 2.37, PDD Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Retail - Cyclical company?
The median Debt-to-EBITDA among Retail - Cyclical companies is 2.37, based on 898 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PDD Holdings's current Debt-to-EBITDA of 0.07 is 97% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on PDD Holdings. For the Retail - Cyclical industry, the median Debt-to-EBITDA is 2.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PDD Holdings's current Debt-to-EBITDA is 0.07, which is 13% below median its own 10-year median of 0.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PDD Holdings stock overvalued right now?
Based on GuruFocus' analysis, PDD Holdings (MEX:PDDN) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN2,696.17, compared to a current price of MXN1,445.57 — trading 46.4% below its estimated fair value. The current Debt-to-EBITDA is 0.07, which is 13% below median its 10-year median of 0.08 and 97% below the Retail - Cyclical industry median of 2.37. PDD Holdings' overall GF Score™ is 64/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For PDD Holdings (MEX:PDDN), the current Debt-to-EBITDA is 0.07 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PDD Holdings (MEX:PDDN) Overvalued in 2026?
Based on GuruFocus' analysis, PDD Holdings stock appears to be undervalued.
The current stock price of MXN1,445.57 is trading 46.4% below its estimated GF Value™ of MXN2,696.17.
GuruFocus considers PDD Holdings to be Significantly Undervalued.
Key valuation signals for MEX:PDDN:
Debt-to-EBITDA: 0.07 (13% below median its 10-year median of 0.08)
GF Value™: MXN2,696.17 vs. price of MXN1,445.57 (46.4% below fair value)
Industry Position: 97% below the Retail - Cyclical median (#18 of 898)
No single metric tells the full story. See the MEX:PDDN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PDD Holdings operates commerce businesses globally. Its main operations are Pinduoduo, a social commerce platform in China, and Temu, a global e-commerce marketplace. PDD also has a community group purchase business in China. PDD has built a network of sourcing, logistics, and fulfillment capabilities that support its underlying businesses. PDD has also started its first-party brand business for global markets.
64GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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