Take This Into Account Before Investing in PDD

By Scott Lee • Thursday, December 11 15:28 • Permanent Link

Pinduoduo logged a -3.0% change during today's afternoon session, and is now trading at a price of $111.8 per share. The S&P 500 index moved 0.0%. PDD's trading volume is 8,583,077 compared to the stock's average volume of 7,968,196.

Pinduoduo trades -23.6% away from its average analyst target price of $146.33 per share. The 36 analysts following the stock have set target prices ranging from $118.89619 to $199.72794, and on average have given Pinduoduo a rating of buy.

Anyone interested in buying PDD should be aware of the facts below:

Pinduoduo's current price is 442.7% above its Graham number of $20.6, which implies that at its current valuation it does not offer a margin of safety
Pinduoduo has moved 10.1% over the last year, and the S&P 500 logged a change of 13.8%
Based on its trailing earnings per share of 9.75, Pinduoduo has a trailing 12 month Price to Earnings (P/E) ratio of 11.5 while the S&P 500 average is None
PDD has a forward P/E ratio of 9.1 based on its forward 12 month price to earnings (EPS) of $12.35 per share
Its Price to Book (P/B) ratio is 2.82 compared to its sector average of None
PDD Holdings Inc., a multinational commerce group that owns and operates a portfolio of businesses.
Based in Dublin, the company has 23,465 full time employees and a market cap of $158.72 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.