PDD Holdings Inc ADR (PDD) is undervalued and Sea Ltd ADR (SE) is overvalued.
Against our estimates of intrinsic value, PDD trades at the wider discount: a margin of safety of +71%, against -35% for SE.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 11.4% (average of 3 methods) values the shares at $77.00; the price of $103.67 is 35% above that value, and 70% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
| Metric | PDD | SE |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $80.35 | $103.67 |
| Intrinsic value | $277.47 | $77.00 |
| Margin of safety | +71% | -35% |
| Leak Score | 100/100 (3/12) | 27/100 (3/12) |
| Market cap | $114.4B | $58.8B |
| Revenue growth, 5 years | 47.5% | 39.3% |
| Operating margin | 22.2% | 7.9% |
| Net margin | 20.7% | 5.9% |
| Return on equity | 22.9% | 14.5% |
| Debt to equity | 0.01 | 0.32 |
| P/E | 8.9x | 39.2x |
| Forward P/E | 6.6x | 21.8x |
| P/B | 1.7x | 4.9x |