The growth of the EPS is critical in understanding the current valuation of Pinduoduo. The EPS growth rate, as it is typically called, is usually expressed as a percentage, which at this time is hard to estimate, but revenue growth has been 263.40 % over the last twelve months. The long-term trend in EPS shows how well the management of Pinduoduo is adding value for shareholders.
Pinduoduo trades as part of the consumer cyclical sector and is in the retail apparel and specialty industry. The company CEO is Zheng Huang.
Previous Intraday Performance:
The PDD shares had a previous change of -9.00% which opened at 22.78 and closed at 20.33. It moved to an intraday high of 22.88 and a low of 20.20.
Over the last five trading days, PDD shares returned -10.44% and in the past 30 trading days it returned -3.88%. Over three months, it changed -23.86%. In one year it has changed -23.86% and within that year its 52-week high was 30.48 and its 52-week low was 17.20. PDD stock is 18.20% above its 52 Week Low.
Our calculations result in a 200 day moving average of 21.86 and a 50 day moving average of 21.68. Right now, PDD stock is trading -7.00% below its 200 day moving average and may not be a great opportunity to buy as it may continue to trend down.
The company has a market cap of $22.5b with 1.1b shares outstanding and a float of 1.1b shares. Trading volume was 6,754,304 shares and has experienced an average volume of 6,599,818 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is good.
The last annual reported EPS for Pinduoduo was -0.1 which ended on 31st of December 2017.
Below was the last reported quarterly earnings per share:
Base on our calculations, the intrinsic value per share is 23.79, which means it might be undervalued and has a margin of safety of 14.55%
Indicators Also to Watch:
Based on the latest filings, there is 2.20% of institutional ownership. Short-interest was 17,745,361, which was 1.60% of shares outstanding. The short-interest ratio or days-to-cover ratio was 2.56. This stock has some short interest, but it might be normal and no need to worry if long the position.
I calculated the beta to be 11.11
Based on last reported financials, the company’s return on equity is 447.60%, return on assets is -30.01%, price-to-sales is 28.60 and price-to-book is 17.78.
Company Score Card:
Results are out of six:
6 : Growth Expectations Result
6 : Financial Safety Result
0 : Past Performance Result
0 : Valuation Result
0 : Dividend Safety Result
3 : Overall Result