Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. PDD Holdings's annualized net income for the quarter that ended in Mar. 2026 was MXN131,313 Mil. PDD Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN1,082,297 Mil. Therefore, PDD Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.13%.
The historical rank and industry rank for PDD Holdings's Return-on-Tangible-Equity or its related term are showing as below:
MEX:PDDN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -116.76 Med: -3.08 Max: 44.6
Current: 24.89
During the past 10 years, PDD Holdings's highest Return-on-Tangible-Equity was 44.60%. The lowest was -116.76%. And the median was -3.08%.
MEX:PDDN's Return-on-Tangible-Equity is ranked better than 76.56% of 1058
companies
in the Retail - Cyclical industry
Industry Median: 8.325
vs MEX:PDDN: 24.89
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
PDD Holdings Return-on-Tangible-Equity Related Terms
PDD Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for PDD Holdings's Return-on-Tangible-Equity 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-Equity Comparison
For the Internet Retail subindustry, PDD Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, PDD Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where PDD Holdings's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 12.13% mean?
PDD Holdings (MEX:PDDN) has a Return-on-Tangible-Equity of 12.13% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on PDD Holdings and its competitors. According to the industry distribution chart, PDD Holdings ranks #248 out of 1058 companies in the Retail - Cyclical industry, placing it in the top 23.4%.
Is PDD Holdings' Return-on-Tangible-Equity too high?
PDD Holdings' current Return-on-Tangible-Equity is 12.13%. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.33. PDD Holdings' value of 12.13% is 45.7% above this industry median. Based on the distribution chart, PDD Holdings ranks #248 out of 1058 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-Equity compare to MELI and DASH?
According to the Retail - Cyclical industry distribution chart, PDD Holdings ranks #248 out of 1058 companies for Return-on-Tangible-Equity. This places PDD Holdings in the top 23% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.33. PDD Holdings' value of 12.13% is 45.7% 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-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.33, based on 1,058 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PDD Holdings's current Return-on-Tangible-Equity of 12.13% is 45.7% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on PDD Holdings and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PDD Holdings's current Return-on-Tangible-Equity is 12.13%. 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-Equity is 12.13% and 45.7% above the Retail - Cyclical industry median of 8.33. 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For PDD Holdings (MEX:PDDN), the current Return-on-Tangible-Equity is 12.13% 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-Equity: 12.13%
GF Value™: MXN2,696.17 vs. price of MXN1,445.57 (46.4% below fair value)
Industry Position: 45.7% above the Retail - Cyclical median (#248 of 1058)
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-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:PDDN has been successfully added to your 
