EBay Inc (EBAY) is overvalued 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 -78% for EBAY.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.8% (average of 3 methods) values the shares at $61.38; the price of $109.28 is 78% above that value, and 70% of that value comes from beyond year five.
Leak Score 41/100 on 9 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 | EBAY | PDD |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $109.28 | $80.35 |
| Intrinsic value | $61.38 | $277.47 |
| Margin of safety | -78% | +71% |
| Leak Score | 41/100 (9/12) | 100/100 (3/12) |
| Market cap | $48.6B | $114.4B |
| Revenue growth, 5 years | 4.6% | 47.5% |
| Operating margin | 21.4% | 22.2% |
| Net margin | 18.4% | 20.7% |
| Return on equity | 46.4% | 22.9% |
| Debt to equity | 1.53 | 0.01 |
| P/E | 22.6x | 8.9x |
| Forward P/E | 16.2x | 6.6x |
| P/B | 10.4x | 1.7x |
| Dividend yield | 1.1% | — |