PDD HoldingsFRA:9PDA 74 ROE % is 12.20% 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 1,092 Retail - Cyclical companies, PDD Holdings ranks better than 84.8% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. PDD Holdings's annualized net income for the quarter that ended in Mar. 2026 was €6,299 Mil. PDD Holdings's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €51,633 Mil. Therefore, PDD Holdings's annualized ROE % for the quarter that ended in Mar. 2026 was 12.20%.
The historical rank and industry rank for PDD Holdings's ROE % or its related term are showing as below:
FRA:9PDA'
s ROE % Range Over the Past 10 Years
Min: -101.76 Med: -2.83 Max: 44.6
Current: 24.89
During the past 10 years, PDD Holdings's highest ROE % was 44.60%. The lowest was -101.76%. And the median was -2.83%.
FRA:9PDA's ROE % is ranked better than 84.8% of 1092
companies
in the Retail - Cyclical industry
Industry Median: 6.49
vs FRA:9PDA: 24.89
PDD Holdings (FRA:9PDA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
PDD Holdings ROE % Related Terms
PDD Holdings ROE % Historical Data
* Premium members only.
The historical data trend for PDD Holdings's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, PDD Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where PDD Holdings's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
PDD Holdings (FRA:9PDA) has a ROE % of 12.20% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on PDD Holdings and its competitors. According to the industry distribution chart, PDD Holdings ranks #166 out of 1092 companies in the Retail - Cyclical industry, placing it in the top 15.2%.
Is PDD Holdings' ROE % too high?
PDD Holdings' current ROE % is 12.20%. The Retail - Cyclical industry median ROE % is 6.49. PDD Holdings' value of 12.20% is 88% above this industry median. Based on the distribution chart, PDD Holdings ranks #166 out of 1092 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' ROE % compare to MELI and DASH?
According to the Retail - Cyclical industry distribution chart, PDD Holdings ranks #166 out of 1092 companies for ROE %. This places PDD Holdings in the top 15% of its industry — outperforming the majority of peers. The industry median ROE % is 6.49. PDD Holdings' value of 12.20% is 88% 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 ROE % for a Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.49, based on 1,092 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PDD Holdings's current ROE % of 12.20% is 88% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on PDD Holdings and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PDD Holdings's current ROE % is 12.20%. 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 ROE % is 12.20% and 88% above the Retail - Cyclical industry median of 6.49. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For PDD Holdings (FRA:9PDA), the current ROE % is 12.20% 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:
ROE %: 12.20%
GF Value™: €130.45 vs. price of €65.00 (50.2% below fair value)
Industry Position: 88% above the Retail - Cyclical median (#166 of 1092)
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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