Evaluating Pinduoduo – Looking Beyond Technicals to Assess Fundamentals

By Naomi Wentworth • Wednesday, June 25 10:00 • Permanent Link

Pinduoduo logged a 0.6% change during today's morning session, and is now trading at a price of $107.77 per share. The S&P 500 index moved 0.0%. PDD's trading volume is 1,264,584 compared to the stock's average volume of 10,402,079.

Pinduoduo trades -15.54% away from its average analyst target price of $127.6 per share. The 36 analysts following the stock have set target prices ranging from $87.144226 to $180.94563, 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 787.7% above its Graham number of $12.14, which implies that at its current valuation it does not offer a margin of safety
Pinduoduo has moved -22.5% over the last year, and the S&P 500 logged a change of 11.2%
Based on its trailing earnings per share of 9.32, Pinduoduo has a trailing 12 month Price to Earnings (P/E) ratio of 11.6 while the S&P 500 average is 29.3
PDD has a forward P/E ratio of 7.6 based on its forward 12 month price to earnings (EPS) of $14.09 per share
Its Price to Book (P/B) ratio is 0.45 compared to its sector average of 2.93
PDD Holdings Inc., a multinational commerce group, owns and operates a portfolio of businesses.
Based in Dublin, the company has 23,465 full time employees and a market cap of $153.0 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.