DPS_EPS Mutual Regulatory Value — PDD Case Study
Subject : DPS_EPS Mutual Regulatory Value — PDD Case Study
.
Concept:
DPS & EPS regulates each other for balances and hormonies.
NetROIC is the life force.
.
(A)
DPS_EPS Mutual Regulatory Value
=
NetROIC × DPS × (2 - DPS/EPS)
or
2 × NetROIC × DPS × (1 - DPS/EPS)
.
DPS
= Dividend Per Share
=
Theoretical Acceptable Payable Dividend Per Share DₜₐₚPS
or
Actual Distributed Dividend Per Share D₀PS
.
DₜₐₚPS ≠ D₀PS
.
(B)
PDD
FY2025
.
Non-Gaap
.
Non-Gaap EPS
= 10.3507581966
.
Non-Gaap NetROIC
= 25.5305840264
.
DₜₐₚPS
= (1/(1+D/E)) × EPS × CICC/NetROIC
= USD 2.0475622232
.
DPS_EPS Mutual Regulatory Value
=
NetROIC × DₜₐₚPS × (2 - DₜₐₚPS/EPS)
=
25.5305840264 × 2.0475622232 × (2 - 2.0475622232/10.3507581966)
= USD 94.2099124654
or
=
2 × NetROIC × DₜₐₚPS × (1 - DₜₐₚPS/EPS)
= 2×25.5305840264×2.0475622232×(1-2.0475622232÷10.3507581966)
= USD 83.8689061534
.
PDD’s 52wL as of Today 2026.May.11
= USD 95.240
.
Remark:
As you can see, DPS_EPS Mutual Regulatory Value is quite conservative.
It is a potential candidate for 52wL figure which may draw serious Contrarian attention.