PDD HoldingsMEX:PDDN +8.20%64 3-Year ROIIC % is 57.09 as of Dec. 2025, which is at its 10-year median of 57.09. GuruFocus rates MEX:PDDN with a GF Score™ of 64/100 and a GF Value™ of MXN2,696.17 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,057 Retail - Cyclical companies, PDD Holdings ranks better than 88.08% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
PDD Holdings's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 57.09%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for PDD Holdings's 3-Year ROIIC % or its related term are showing as below:
MEX:PDDN's 3-Year ROIIC % is ranked better than 88.08% of 1057
companies
in the Retail - Cyclical industry
Industry Median: 4.64
vs MEX:PDDN: 57.09
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
PDD Holdings 3-Year ROIIC % Related Terms
PDD Holdings 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for PDD Holdings's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Internet Retail subindustry, PDD Holdings's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, PDD Holdings's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where PDD Holdings's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
PDD Holdings (MEX:PDDN) has a 3-Year ROIIC % of 57.09 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on PDD Holdings and its competitors. This is near median its historical median of 57.09. According to the industry distribution chart, PDD Holdings ranks #126 out of 1057 companies in the Retail - Cyclical industry, placing it in the top 11.9%.
Is PDD Holdings' 3-Year ROIIC % too high?
PDD Holdings' current 3-Year ROIIC % of 57.09 is near median its 10-year median of 57.09. The Retail - Cyclical industry median 3-Year ROIIC % is 4.64. PDD Holdings' value of 57.09 is 1130.4% above this industry median. Based on the distribution chart, PDD Holdings ranks #126 out of 1057 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' 3-Year ROIIC % compare to MELI and DASH?
According to the Retail - Cyclical industry distribution chart, PDD Holdings ranks #126 out of 1057 companies for 3-Year ROIIC %. This places PDD Holdings in the top 12% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 4.64. PDD Holdings' value of 57.09 is 1130.4% above this benchmark. While the company's 10-year median is 57.09 vs. the industry median of 4.64, 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 3-Year ROIIC % for a Retail - Cyclical company?
The median 3-Year ROIIC % among Retail - Cyclical companies is 4.64, based on 1,057 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PDD Holdings's current 3-Year ROIIC % of 57.09 is 1130.4% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on PDD Holdings and its competitors. For the Retail - Cyclical industry, the median 3-Year ROIIC % is 4.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PDD Holdings's current 3-Year ROIIC % is 57.09, which is near median its own 10-year median of 57.09. 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 3-Year ROIIC % is 57.09, which is near median its 10-year median of 57.09 and 1130.4% above the Retail - Cyclical industry median of 4.64. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For PDD Holdings (MEX:PDDN), the current 3-Year ROIIC % is 57.09 as of Dec. 2025. 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:
3-Year ROIIC %: 57.09 (near median its 10-year median of 57.09)
GF Value™: MXN2,696.17 vs. price of MXN1,445.57 (46.4% below fair value)
Industry Position: 1130.4% above the Retail - Cyclical median (#126 of 1057)
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
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