PERETURN (Conservative)=1: PDD Case Study
PERETURN (Conservative)=1: PDD Case Study
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Basic understanding:
Profit Growth leaves a mark on ROIC and ROA respectively.
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In other words, ROIC and ROA carries the stamps of Profit Growth.
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In other words, ROIC and ROA are the produces of Profit Growth; Profit Growth thrives, ROIC and ROA thrive; Profit Growth collapses, ROIC and ROA collapse.
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PERETURN = 1
P/E ÷ RETURN = 1
RETURN
= ROA, ROIC and their variants
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PDD
(Financial.2025.Sep.Q3.TTM)
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CICC = 100 × (CICC Factor - 1)
CTAC = 100 × (CTAC Factor - 1)
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CICC Factor
= Clean Invested Capital Cost Factor
= 30Y Government Bond Yield Factor × (1 + D/E × (1 + Prime Ratio + Spread Ratio) ÷ (1 + D/E)
= 1.04864×(1+0.027270204×1.10)÷(1+0.027270204)
= 1.0514237493
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CICC = 5.14237493
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CTAC Factor
= Clean Total Assets Cost Factor
= 30Y Government Bond Yield Factor × (1 + Total Liabilities/Total Equity × (1 + Prime Ratio + Spread Ratio) ÷ (1 + Total Liabilities/Total Equity)
= 1.04864×(1+0.5680113735×1.10)÷(1+0.5680113735)
= 1.0866269341
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CTAC = 8.66269341
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(1)
P (Extreme Conservative)
= EPS × RETURN (Extreme Conservative)
= EPS × (ROIC × ROA × CICC × CTAC)^(1÷4)
= 10.289979567 × (25.4354775147×16.6638511789×5.14237493×8.66269341)^(1÷4)
= 10.289979567×(25.4354775147×16.6638511789×5.14237493×8.66269341)^(1÷4)
= USD 120.6208824171
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(2)
P (Conservative)
= EPS × RETURN
= EPS × ROA
= 10.289979567×16.6638511789
= USA 171.4706881384
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(3)
P
= EPS × RETURN
= EPS × (ROIC × ROA)^(1÷2)
= 10.289979567 × (25.4354775147×16.6638511789)^(1÷2)
= USD 211.846917537
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(4)
P(Ultimate)
= EPS × RETURN
= EPS × ROIC
= 10.289979567 × 25.4354775147
= USD 261.7305439032