PDD HoldingsFRA:9PDA 74 ROA % is 8.05% as of Mar. 2026. GuruFocus rates FRA:9PDA with a GF Score™ of 74/100 and a GF Value™ of €130.45 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,129 Retail - Cyclical companies, PDD Holdings ranks better than 93.27% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. PDD Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was €6,299 Mil.
PDD Holdings's average Total Assets over the quarter that ended in Mar. 2026 was €78,215 Mil. Therefore, PDD Holdings's annualized ROA % for the quarter that ended in Mar. 2026 was 8.05%.
The historical rank and industry rank for PDD Holdings's ROA % or its related term are showing as below:
FRA:9PDA'
s ROA % Range Over the Past 10 Years
Min: -35.8 Med: -0.82 Max: 26.15
Current: 16.05
During the past 10 years, PDD Holdings's highest ROA % was 26.15%. The lowest was -35.80%. And the median was -0.82%.
FRA:9PDA's ROA % is ranked better than 93.27% of 1129
companies
in the Retail - Cyclical industry
Industry Median: 2.73
vs FRA:9PDA: 16.05
PDD Holdings (FRA:9PDA) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
PDD Holdings ROA % Related Terms
PDD Holdings ROA % Historical Data
* Premium members only.
The historical data trend for PDD Holdings's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, PDD Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where PDD Holdings's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
PDD Holdings (FRA:9PDA) has a ROA % of 8.05% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on PDD Holdings and its competitors. According to the industry distribution chart, PDD Holdings ranks #76 out of 1129 companies in the Retail - Cyclical industry, placing it in the top 6.7%.
Is PDD Holdings' ROA % too high?
PDD Holdings' current ROA % is 8.05%. The Retail - Cyclical industry median ROA % is 2.73. PDD Holdings' value of 8.05% is 194.9% above this industry median. Based on the distribution chart, PDD Holdings ranks #76 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 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PDD Holdings' ROA % compare to MELI and DASH?
According to the Retail - Cyclical industry distribution chart, PDD Holdings ranks #76 out of 1129 companies for ROA %. This places PDD Holdings in the top 7% of its industry — outperforming the majority of peers. The industry median ROA % is 2.73. PDD Holdings' value of 8.05% is 194.9% 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 ROA % for a Retail - Cyclical company?
The median ROA % among Retail - Cyclical companies is 2.73, based on 1,129 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PDD Holdings's current ROA % of 8.05% is 194.9% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on PDD Holdings and its competitors. For the Retail - Cyclical industry, the median ROA % is 2.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PDD Holdings's current ROA % is 8.05%. 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 €130.45, compared to a current price of €65.00 — trading 50.2% below its estimated fair value. The current ROA % is 8.05% and 194.9% above the Retail - Cyclical industry median of 2.73. PDD Holdings' overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For PDD Holdings (FRA:9PDA), the current ROA % is 8.05% 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 €65.00 is trading 50.2% below its estimated GF Value™ of €130.45.
GuruFocus considers PDD Holdings to be Significantly Undervalued.
Key valuation signals for FRA:9PDA:
ROA %: 8.05%
GF Value™: €130.45 vs. price of €65.00 (50.2% below fair value)
Industry Position: 194.9% above the Retail - Cyclical median (#76 of 1129)
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.
74GF Score
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ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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