Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. PDD Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN131,313 Mil. PDD Holdings's average total tangible assets for the quarter that ended in Mar. 2026 was MXN1,639,558 Mil. Therefore, PDD Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 8.01%.
The historical rank and industry rank for PDD Holdings's Return-on-Tangible-Asset or its related term are showing as below:
MEX:PDDN'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -37.49 Med: -0.84 Max: 26.15
Current: 16.05
During the past 10 years, PDD Holdings's highest Return-on-Tangible-Asset was 26.15%. The lowest was -37.49%. And the median was -0.84%.
MEX:PDDN's Return-on-Tangible-Asset is ranked better than 92.21% of 1129
companies
in the Retail - Cyclical industry
Industry Median: 2.93
vs MEX:PDDN: 16.05
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
PDD Holdings Return-on-Tangible-Asset Related Terms
PDD Holdings Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for PDD Holdings's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Internet Retail subindustry, PDD Holdings's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, PDD Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where PDD Holdings's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 8.01% mean?
PDD Holdings (MEX:PDDN) has a Return-on-Tangible-Asset of 8.01% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on PDD Holdings and its competitors. According to the industry distribution chart, PDD Holdings ranks #88 out of 1129 companies in the Retail - Cyclical industry, placing it in the top 7.8%.
Is PDD Holdings' Return-on-Tangible-Asset too high?
PDD Holdings' current Return-on-Tangible-Asset is 8.01%. The Retail - Cyclical industry median Return-on-Tangible-Asset is 2.93. PDD Holdings' value of 8.01% is 173.4% above this industry median. Based on the distribution chart, PDD Holdings ranks #88 out of 1129 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' Return-on-Tangible-Asset compare to MELI and DASH?
According to the Retail - Cyclical industry distribution chart, PDD Holdings ranks #88 out of 1129 companies for Return-on-Tangible-Asset. This places PDD Holdings in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.93. PDD Holdings' value of 8.01% is 173.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Retail - Cyclical company?
The median Return-on-Tangible-Asset among Retail - Cyclical companies is 2.93, based on 1,129 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PDD Holdings's current Return-on-Tangible-Asset of 8.01% is 173.4% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on PDD Holdings and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Asset is 2.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PDD Holdings's current Return-on-Tangible-Asset is 8.01%. 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 Return-on-Tangible-Asset is 8.01% and 173.4% above the Retail - Cyclical industry median of 2.93. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For PDD Holdings (MEX:PDDN), the current Return-on-Tangible-Asset is 8.01% 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:
Return-on-Tangible-Asset: 8.01%
GF Value™: MXN2,696.17 vs. price of MXN1,445.57 (46.4% below fair value)
Industry Position: 173.4% above the Retail - Cyclical median (#88 of 1129)
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
Get the complete analysis for MEX:PDDN
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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