Deserved P/E = G_Factor × (Base Profitability ÷ Cost_Ratio)^(1÷n) — PDD Case Study
Subject :
Deserved P/E
= G_Factor × (Base Profitability ÷ Cost_Ratio)^(1÷n)
— PDD Case Study
.
Deserved P/E
= G_Factor × (Base Profitability ÷ Cost_Ratio)^(1÷n)
.
G Factor
= 1 + Gnet_profit_ratio
.
Base Profitability
= ROIC, ROA, √(ROIC × ROA)
.
Cost_Ratio
= CICC_Ratio, CTAC_Ratio, √(CICC_Ratio × CTAC_Ratio)
.
CICC Factor
= Clean Invested Capital Cost Factor
= 30Y Government Bond Yield Factor × ( 1 + D/E × (1 + 2 x 30Y Government Bond Yield Ratio) )÷ (1 + D/E)
.
CICC Ratio
= CICC Factor - 1
.
CTAC Factor
= Clean Total Assets Cost Factor
= 30Y Government Bond Yield Factor × (1 + Total Liabilities/Total Equity × (1 + 2 × 30Y Government Bond Yield Ratio)) ÷ (1 + Total Liabilities/Total Equity)
.
CTAC_Ratio
= CTAC Factor - 1
.
(A)
Deserved P/E
= G_Factor × (Base Profitability ÷ Cost_Ratio)^(1÷n)
= (1 + Gnet_profit_ratio) × √(ROIC÷CICC_Ratio)
.
(B)
Deserved P/E
= G_Factor × (Base Profitability ÷ Cost_Ratio)^(1÷n)
= (1 + Gnet_profit_ratio) × √(ROA÷CTAC_Ratio)
.
(C)
Deserved P/E
= G_Factor × (Base Profitability ÷ Cost_Ratio)^(1÷n)
= (1 + Gnet_profit_ratio) × (ROIC÷CICC_Ratio×ROA÷CTAC_Ratio)^(1÷4)
.
:: PDD Case Study ::
.
PDD FY2025
Gnet_income = -11.52 %
Non-Gaap EPS = USD 10.3507581966
.
Non-Gaap ROIC
= 100 × Net Income ÷ (Total Equity + Total Debts)
= 25.5305840264 %
.
Non-Gaap ROA = 17.0307631 %
.
CICC Factor
= Clean Invested Capital Cost Factor
= 30Y Government Bond Yield Factor × ( 1 + D/E × (1 + 2 x 30Y Government Bond Yield Ratio) )÷ (1 + D/E)
= 1.04982×(1+0.0129638543×(1+2×0.04982))÷(1+0.0129638543)
= 1.0511587169
.
CICC_Ratio
= CICC Factor - 1
= 0.0511587169
.
CTAC Factor ttm
= Clean Total Assets Cost Factor ttm
= 30Y Government Bond Yield Factor × (1 + Total Liabilities/Total Equity × (1 + 2 × 30Y Government Bond Yield Ratio)) ÷ (1 + Total Liabilities/Total Equity)
= 1.04982×(1+0.5185190812×(1+0.04982×2))÷(1+0.5185190812)
= 1.085538486
.
CTAC_Ratio
= CTAC Factor - 1
= 0.085538486
.
(A)
Deserved P/E
= G_Factor × (Base Profitability ÷ Cost_Ratio)^(1÷n)
= (1 + Gnet_profit_ratio) × √(ROIC÷CICC_Ratio)
= (1-0.1152) × √(25.5305840264÷0.0511587169)
= 19.7658578184 ✅
.
(B)
Deserved P/E
= G_Factor × (Base Profitability ÷ Cost_Ratio)^(1÷n)
= (1 + Gnet_profit_ratio) × √(ROA÷CTAC_Ratio)
= (1-0.1152)×√(17.03077631÷0.085538486)
= 12.4847990571 ✅
.
(C)
Deserved P/E
= G_Factor × (Base Profitability ÷ Cost_Ratio)^(1÷n)
= (1 + Gnet_profit_ratio) × (ROIC÷CICC_Ratio×ROA÷CTAC_Ratio)^(1÷4)
= (1-0.1152) × (25.5305840264÷0.0511587169×17.03077631÷0.085538486)^(1÷4)
= 15.7090026117 ✅