Trading at around 10X PE, with nearly half of its market cap in cash on the balance sheet. To put it this way, if you were to acquire 100% of Pinduoduo, you wouldn't need to worry about stock price appreciation. Even if Pinduoduo stopped growing entirely, you'd break even in just 5 years. Yet it's still growing like crazy. Currently, Taotian and JD.com domestically have completely lost. JD.com has already given up competing against Pinduoduo and turned to team up with Taobao to compete against Meituan instead, because they can't beat Pinduoduo anymore.
Pinduoduo is really severely undervalued.
Trading at around 10X PE, with nearly half of its market cap in cash on the balance sheet.
To put it this way, if you were to acquire 100% of Pinduoduo, you wouldn't need to worry about stock price appreciation. Even if Pinduoduo stopped growing entirely, you'd break even in just 5 years.
Yet it's still growing like crazy.
Currently, Taotian and JD.com domestically have completely lost. JD.com has already given up competing against Pinduoduo and turned to team up with Taobao to compete against Meituan instead, because they can't beat Pinduoduo anymore.