Amazon.com Inc (AMZN) is slightly undervalued and PDD Holdings Inc ADR (PDD) is undervalued.
Against our estimates of intrinsic value, PDD trades at the wider discount: a margin of safety of +71%, against +7% for AMZN.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 11.9% (average of 3 methods) values the shares at $273.73; the price of $254.98 is 7% below that value, and 68% of that value comes from beyond year five.
Leak Score 46/100 on 10 of 12 signals
Discounting its cash flows at 8.7% (average of 3 methods) values the shares at $277.47; the price of $80.35 is 71% below that value, and 78% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
| Metric | AMZN | PDD |
|---|---|---|
| Verdict | Slightly undervalued | Undervalued |
| Price | $254.98 | $80.35 |
| Intrinsic value | $273.73 | $277.47 |
| Margin of safety | +7% | +71% |
| Leak Score | 46/100 (10/12) | 100/100 (3/12) |
| Market cap | $2.75T | $114.4B |
| Revenue growth, 5 years | 13.2% | 47.5% |
| Operating margin | 12.7% | 22.2% |
| Net margin | 17.4% | 20.7% |
| Return on equity | 30.6% | 22.9% |
| Debt to equity | 0.44 | 0.01 |
| P/E | 20.5x | 8.9x |
| Forward P/E | 24.0x | 6.6x |
| P/B | 5.0x | 1.7x |