PDD HoldingsFRA:9PDA +2.46%67 Interest Coverage is 30.96 as of Mar. 2026, which is 99% below its 10-year median of 5,667.28. GuruFocus rates FRA:9PDA with a GF Score™ of 67/100 and a GF Value™ of €133.68 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 824 Retail - Cyclical companies, PDD Holdings ranks better than 90.9% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. PDD Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was €2,456 Mil. PDD Holdings's Interest Expense for the
three
months ended in Mar. 2026 was €-79 Mil.
PDD Holdings's interest coverage for the quarter that ended in Mar. 2026 was 30.96.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. PDD Holdings Inc has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for PDD Holdings's Interest Coverage or its related term are showing as below:
FRA:9PDA'
s Interest Coverage Range Over the Past 10 Years
Min: 5.6 Med: 5667.28 Max: No Debt
Current: 149.01
FRA:9PDA's Interest Coverage is ranked better than 90.9% of 824
companies
in the Retail - Cyclical industry
Industry Median: 7.94
vs FRA:9PDA: 149.01
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
PDD Holdings Interest Coverage Related Terms
PDD Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for PDD Holdings's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:9PDA vs MELI, DASH, SE: Interest Coverage Comparison
For the Internet Retail subindustry, PDD Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, PDD Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where PDD Holdings's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (FRA:9PDA) has a Interest Coverage of 30.96 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on PDD Holdings and its competitors. This is 99% below median its historical median of 5,667.28. Over the past decade, PDD Holdings' Interest Coverage has ranged from 5.60 to 10,000.00. According to the industry distribution chart, PDD Holdings ranks #75 out of 824 companies in the Retail - Cyclical industry, placing it in the top 9.1%.
Is PDD Holdings' Interest Coverage too high?
PDD Holdings' current Interest Coverage of 30.96 is 99% below median its 10-year median of 5,667.28. Over the past 10 years, this metric has ranged from a low of 5.60 to a high of 10,000.00. The Retail - Cyclical industry median Interest Coverage is 7.94. PDD Holdings' value of 30.96 is 289.9% above this industry median. Based on the distribution chart, PDD Holdings ranks #75 out of 824 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 67/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PDD Holdings' Interest Coverage compare to MELI and DASH?
According to the Retail - Cyclical industry distribution chart, PDD Holdings ranks #75 out of 824 companies for Interest Coverage. This places PDD Holdings in the top 9% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 7.94. PDD Holdings' value of 30.96 is 289.9% above this benchmark. Historically, PDD Holdings' own Interest Coverage has ranged from 5.60 to 10,000.00 over the past decade. While the company's 10-year median is 5,667.28 vs. the industry median of 7.94, PDD Holdings has consistently been above 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 Interest Coverage for a Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.94, based on 824 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PDD Holdings's current Interest Coverage of 30.96 is 289.9% above 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on PDD Holdings and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PDD Holdings's current Interest Coverage is 30.96, which is 99% below median its own 10-year median of 5,667.28. 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 (FRA:9PDA) is currently considered Significantly Undervalued. The stock's GF Value™ is €133.68, compared to a current price of €66.60 — trading 50.2% below its estimated fair value. The current Interest Coverage is 30.96, which is 99% below median its 10-year median of 5,667.28 and 289.9% above the Retail - Cyclical industry median of 7.94. PDD Holdings' overall GF Score™ is 67/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For PDD Holdings (FRA:9PDA), the current Interest Coverage is 30.96 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 (FRA:9PDA) Overvalued in 2026?
Based on GuruFocus' analysis, PDD Holdings stock appears to be undervalued.
The current stock price of €66.60 is trading 50.2% below its estimated GF Value™ of €133.68.
GuruFocus considers PDD Holdings to be Significantly Undervalued.
Key valuation signals for FRA:9PDA:
Interest Coverage: 30.96 (99% below median its 10-year median of 5,667.28)
GF Value™: €133.68 vs. price of €66.60 (50.2% below fair value)
Industry Position: 289.9% above the Retail - Cyclical median (#75 of 824)
No single metric tells the full story. See the FRA:9PDA 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.
67GF Score
Get the complete analysis for FRA:9PDA
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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