JD.com Inc ADR (JD) 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 +15% for JD.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 6.6% (average of 2 methods) values the shares at $32.24; the price of $27.38 is 15% below that value.
Leak Score 49/100 on 3 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 | JD | PDD |
|---|---|---|
| Verdict | Slightly undervalued | Undervalued |
| Price | $27.38 | $80.35 |
| Intrinsic value | $32.24 | $277.47 |
| Margin of safety | +15% | +71% |
| Leak Score | 49/100 (3/12) | 100/100 (3/12) |
| Market cap | $32.9B | $114.4B |
| Revenue growth, 5 years | 11.0% | 47.5% |
| Operating margin | 0.2% | 22.2% |
| Net margin | 1.1% | 20.7% |
| Return on equity | 6.7% | 22.9% |
| Debt to equity | 0.48 | 0.01 |
| P/E | 18.5x | 8.9x |
| Forward P/E | 6.5x | 6.6x |
| P/B | 1.2x | 1.7x |
| Dividend yield | 3.3% | — |