Question 1

What is PDD Holdings's P/FCF ratio?

Accepted Answer

PDD Holdings (PDD) P/FCF ratio is 8.2× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for PDD Holdings?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For PDD Holdings specifically, the relevant sector benchmark is the current sector median of 17.1×.

Question 5

Is PDD Holdings's P/FCF ratio high or low?

Accepted Answer

PDD Holdings's P/FCF ratio of 8.2× is below its own 5-year average of 15.8× and below the sector median of 17.1×. That places the current reading at the 5th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is PDD Holdings's historical P/FCF ratio range?

Accepted Answer

In the available daily series, PDD Holdings (PDD) P/FCF ratio has ranged from a low of 7.1× in 2024 to a high of 611.4× in 2017. The 5-year average is 15.8× and the 5-year median is 14.5×.

Question 7

What was PDD Holdings's P/FCF ratio in 2025?

Accepted Answer

PDD Holdings (PDD) P/FCF ratio at the end of 2025 was 10.7×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does PDD Holdings's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$159B	$14.9B	10.7×	+2.6×	Dec 31, 2025
2024	$135B	$16.8B	8.0×	-7.3×	Dec 31, 2024
2023	$199B	$13B	15.3×	-13.1×	Dec 31, 2023
2022	$104B	$3.66B	28.4×	+12.0×	Dec 31, 2022
2021	$73.3B	$4.48B	16.4×	-34.0×	Dec 31, 2021
2020	$209B	$4.15B	50.4×	+29.8×	Dec 31, 2020
2019	$43.6B	$2.11B	20.7×	-3.8×	Dec 31, 2019
2018	$24.9B	$1.02B	24.4×	-586.9×	Dec 31, 2018
2017	$23B	$37.6M	611.4×	—	Dec 31, 2017


Tapestry (TPR)	16.0×
DraftKings (DKNG)	15.5×
Avery Dennison (AVY)	15.2×
Wynn Resorts (WYNN)	15.1×
NVR (NVR)	14.9×
Booking Holdings (BKNG)	14.7×
D.R. Horton (DHI)	14.2×
V.F. (VFC)	12.6×
Deckers Outdoor (DECK)	12.0×
Carnival Corporation (CCL)	11.9×
Lululemon Athletica (LULU)	11.6×
Toll Brothers (TOL)	11.1×
Hasbro (HAS)	9.8×
LKQ (LKQ)	9.3×
KB Home (KBH)	8.8×
Mohawk Industries (MHK)	8.4×
MercadoLibre (MELI)	8.2×
Best Buy Co. (BBY)	7.9×
Etsy (ETSY)	7.2×
Leggett & Platt (LEG)	6.6×
Weyco Group (WEYS)	6.2×
Expedia Group (EXPE)	6.0×
MGM Resorts (MGM)	5.5×
Ford Motor (F)	4.8×
General Motors (GM)	4.3×

P/FCF Ratio for PDD Holdings (PDD) 2017-2026

P/FCF Ratio daily chart for PDD Holdings (PDD)

Historical P/FCF Ratio for PDD Holdings (PDD) from 2017 to 2025

About P/FCF Ratio at PDD Holdings (PDD)

PDD Holdings P/FCF Ratio by Year

PDD Holdings P/FCF Ratio 2025: 10.7×

PDD Holdings P/FCF Ratio 2024: 8.0×

PDD Holdings P/FCF Ratio 2023: 15.3×

PDD Holdings P/FCF Ratio 2022: 28.4×

PDD Holdings P/FCF Ratio 2021: 16.4×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

PDD Holdings (PDD) Key Financials