Are Pinduoduo Inc. (NASDAQ:PDD) shares too expensive at this price?

In the latest session, Pinduoduo Inc. (NASDAQ: PDD) closed at $90.22 up 0.75% from its previous closing price of $89.55. In other words, the price has increased by $+0.67 from its previous closing price. On the day, 5903235 shares were traded. PDD stock price reached its highest trading level at $92.96 during the session, while it also had its lowest trading level at $90.22.

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For a deeper understanding of Pinduoduo Inc.’s stock, let’s take a closer look at its various ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 5.37 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 19.30. In the meantime, Its Debt-to-Equity ratio is 0.00 whereas as Long-Term Debt/Eq ratio is at 0.15.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Barclays on October 27, 2022, Upgraded its rating to Overweight and sets its target price to $70 from $66 previously.

On August 30, 2022, HSBC Securities Upgraded its rating to Buy which previously was Hold but kept the price unchanged to $93.

Morgan Stanley Downgraded its Overweight to Equal-Weight on July 11, 2022, while the target price for the stock was maintained at $70.

Valuation Measures:

As of this moment, Pinduoduo’s Price-to-Earnings (P/E) ratio for their current fiscal year is 30.35, and their Forward P/E ratio for the next fiscal year is 20.50. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.45. For the stock, the TTM Price-to-Sale (P/S) ratio is 6.28 while its Price-to-Book (P/B) ratio in mrq is 7.17.

Stock Price History:

Over the past 52 weeks, PDD has reached a high of $99.30, while it has fallen to a 52-week low of $23.21. The 50-Day Moving Average of the stock is 81.09, while the 200-Day Moving Average is calculated to be 60.18.

Shares Statistics:

For the past three months, PDD has traded an average of 12.93M shares per day and 8.64M over the past ten days. A total of 1.26B shares are outstanding, with a floating share count of 908.91M. Insiders hold about 0.20% of the company’s shares, while institutions hold 25.50% stake in the company. Shares short for PDD as of Oct 13, 2022 were 18.42M with a Short Ratio of 23.73M, compared to 18.34M on Sep 14, 2022.

Earnings Estimates

There are 11 different market analysts currently analyzing its stock. On average, analysts expect EPS of $0.65 for the current quarter, with a high estimate of $0.86 and a low estimate of $0.51, while EPS last year was $0.34. The consensus estimate for the next quarter is $0.96, with high estimates of $1.6 and low estimates of $0.75.

Analysts are recommending an EPS of between $3.92 and $1.88 for the fiscal current year, implying an average EPS of $3. EPS for the following year is $3.61, with 30 analysts recommending between $5.06 and $2.49.

Revenue Estimates

A total of 16 analysts believe the company’s revenue will be $4.28B this quarter.It ranges from a high estimate of $4.89B to a low estimate of $3.8B. As of the current estimate, Pinduoduo Inc.’s year-ago sales were $3.38B, an estimated increase of 26.90% from the year-ago figure. For the next quarter, 14 analysts are estimating revenue of $5.38B, an increase of 32.20% over than the figure of $26.90% in the same quarter last year. There is a high estimate of $6.95B for the next quarter, whereas the lowest estimate is $4.8B.

A total of 40 analysts have provided revenue estimates for PDD’s current fiscal year. The highest revenue estimate was $19.19B, while the lowest revenue estimate was $16.23B, resulting in an average revenue estimate of $17.19B. In the same quarter a year ago, actual revenue was $14.04B, up 22.50% from the average estimate. Based on 41 analysts’ estimates, the company’s revenue will be $21.21B in the next fiscal year. The high estimate is $24.39B and the low estimate is $19.58B. The average revenue growth estimate for next year is up 23.40% from the average revenue estimate for this year.