Assessing PDD Holdings (NasdaqGS:PDD)’s Valuation After Q3 2025 Results and New Merchant Support Program

PDD Holdings (NasdaqGS:PDD) just dropped its unaudited Q3 2025 numbers, showing revenue growth powered by online marketing and transaction services, while unveiling a massive RMB 100 billion support program for merchants and farmers.

See our latest analysis for PDD Holdings.

Despite the headline grabbing merchant support program, the share price has cooled off recently, with a 30 day share price return of negative 13.37% but a still respectable 3 year total shareholder return of 36.66%, suggesting longer term momentum remains intact.

If PDD’s latest moves have you thinking about what else is reshaping online commerce, this could be a good moment to explore fast growing stocks with high insider ownership.

With revenue still climbing, a sizeable intrinsic discount to fair value estimates, and a recent pullback in the share price, the key question now is whether PDD represents a buyable mispricing or whether the market is already discounting its next leg of growth.

Most Popular Narrative: 19.9% Undervalued

With PDD Holdings last closing at $117.62 versus a narrative fair value near $146.91, the current gap hinges on sustained top line momentum.

The company is leveraging its Consumer to Manufacturer C2M model and advancements in supply chain or process digitalization to help manufacturers move up the value chain, increase product innovation, and address consumer needs more efficiently. These improvements are expected to support higher gross margins and net margins over time as scaling and cost efficiency gains materialize.

Read the complete narrative.

Curious how modest revenue growth assumptions, rising margins, and a lower future earnings multiple still add up to a higher fair value than today? The full narrative lays out the math and the trade offs behind that conviction.

Result: Fair Value of $146.91 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heavy ecosystem investments and intensifying competition could keep margins under pressure, challenging the idea that top line growth alone justifies a higher valuation.

Find out about the key risks to this PDD Holdings narrative.

Build Your Own PDD Holdings Narrative

If this perspective does not fully match your view or you would rather rely on your own work, you can build a complete narrative in just a few minutes, Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding PDD Holdings.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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