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PDD HoldingsPDD +1.43%73 EV-to-EBIT is 3.59 as of Jul. 16, 2026, which is 45% below its 10-year median of 6.57. GuruFocus rates PDD with a GF Score™ of 73/100 and a GF Value™ of $155.11 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 869 Retail - Cyclical companies, PDD Holdings ranks better than 92.41% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
PDD Holdings's Enterprise Value for the quarter that ended in Mar. 2026 was $82,915 Mil.
PDD Holdings's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $17,088 Mil.
* 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.
PDD Holdings EV-to-EBIT Related Terms
PDD Holdings EV-to-EBIT Historical Data
* Premium members only.
The historical data trend for PDD Holdings's EV-to-EBIT 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.
For the Internet Retail subindustry, PDD Holdings's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, PDD Holdings's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where PDD Holdings's EV-to-EBIT falls into.
PDD Holdings's current Enterprise Value is $61,265 Mil.
PDD Holdings's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $17,088 Mil.
* 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.
PDD Holdings (PDD) has a EV-to-EBIT of 3.59 as of Jul. 16, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on PDD Holdings and its competitors. This is 45% below median its historical median of 6.57. According to the industry distribution chart, PDD Holdings ranks #66 out of 869 companies in the Retail - Cyclical industry, placing it in the top 7.6%.
Is PDD Holdings' EV-to-EBIT too high?
PDD Holdings' current EV-to-EBIT of 3.59 is 45% below median its 10-year median of 6.57. The Retail - Cyclical industry median EV-to-EBIT is 13.48. PDD Holdings' value of 3.59 is 73.4% below this industry median. Based on the distribution chart, PDD Holdings ranks #66 out of 869 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 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PDD Holdings' EV-to-EBIT compare to MELI and DASH?
According to the Retail - Cyclical industry distribution chart, PDD Holdings ranks #66 out of 869 companies for EV-to-EBIT. This places PDD Holdings in the top 8% of its industry — outperforming the majority of peers. The industry median EV-to-EBIT is 13.48. PDD Holdings' value of 3.59 is 73.4% below this benchmark. While the company's 10-year median is 6.57 vs. the industry median of 13.48, 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 EV-to-EBIT for a Retail - Cyclical company?
The median EV-to-EBIT among Retail - Cyclical companies is 13.48, based on 869 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PDD Holdings's current EV-to-EBIT of 3.59 is 73.4% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on PDD Holdings and its competitors. For the Retail - Cyclical industry, the median EV-to-EBIT is 13.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PDD Holdings's current EV-to-EBIT is 3.59, which is 45% below median its own 10-year median of 6.57. 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 (PDD) is currently considered Significantly Undervalued. The stock's GF Value™ is $155.11, compared to a current price of $86.97 — trading 43.9% below its estimated fair value. The current EV-to-EBIT is 3.59, which is 45% below median its 10-year median of 6.57 and 73.4% below the Retail - Cyclical industry median of 13.48. PDD Holdings' overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For PDD Holdings (PDD), the current EV-to-EBIT is 3.59 as of Jul. 16, 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 (PDD) Overvalued in 2026?
Based on GuruFocus' analysis, PDD Holdings stock appears to be undervalued.
The current stock price of $86.97 is trading 43.9% below its estimated GF Value™ of $155.11.
GuruFocus considers PDD Holdings to be Significantly Undervalued.
Key valuation signals for PDD:
EV-to-EBIT: 3.59 (45% below median its 10-year median of 6.57)
GF Value™: $155.11 vs. price of $86.97 (43.9% below fair value)
Industry Position: 73.4% below the Retail - Cyclical median (#66 of 869)
No single metric tells the full story. See the PDD 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.
73GF Score
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