Don't Judge Pinduoduo on Technicals Alone - Check Its Fundamentals!

By Naomi Wentworth • Monday, December 04 19:33 • Permanent Link

Large-cap Consumer Discretionary company Pinduoduo has moved -1.7% so far today on a volume of 9,262,020, compared to its average of 8,302,607. In contrast, the S&P 500 index moved -1.0%.

Pinduoduo trades -10.69% away from its average analyst target price of $159.93 per share. The 36 analysts following the stock have set target prices ranging from $105.8 to $209.59, and on average have given Pinduoduo a rating of buy.

If you are considering an investment in PDD, you'll want to know the following:

Pinduoduo's current price is 1743.0% above its Graham number of $7.75, which implies that at its current valuation it does not offer a margin of safety
Based on its trailing earnings per share of 3.87, Pinduoduo has a trailing 12 month Price to Earnings (P/E) ratio of 36.9 while the S&P 500 average is None
PDD has a forward P/E ratio of 20.1 based on its forward 12 month price to earnings (EPS) of $7.11 per share
The company has a price to earnings growth (PEG) ratio of 87.51 — a number near or below 1 signifying that Pinduoduo is fairly valued compared to its estimated growth potential
Its Price to Book (P/B) ratio is 1.34 compared to its sector average of None
PDD Holdings Inc., a multinational commerce group, owns and operates a portfolio of businesses.
Based in Dublin, the company has 12,992 full time employees and a market cap of $189.76 Billion.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.