Sequential, Lower, Median & Upper Bounds Intrinsic P/E (ROA, NetROIC, CTAC, CICC Based) — PDD Case Study
Subject: Sequential, Lower, Median & Upper Bounds Intrinsic P/E (ROA, NetROIC, CTAC, CICC Based) — PDD Case Study
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√(ROA ÷ CTAC_Ratio)
√(NetROIC ÷ CTAC_Ratio)
√(ROA ÷ CICC_Ratio)
√(NetROIC ÷ CICC_Ratio)
(ROA ÷ CTAC_Ratio × NetROIC ÷ CICC_Ratio)^(1÷4)
(G ÷ √(CTAC_Ratio × CICC_Ratio) × ROA ÷ CTAC_Ratio × NetROIC ÷ CICC_Ratio)^(1÷6)
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PDD
FY 2025
Non-Gaap
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√(ROA÷CTAC_Ratio)
= √(17.0307763123÷0.0855384867)
= 14.1103062917
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√(NetROIC÷CTAC_Ratio)
= √(25.5305840264÷0.0855384867)
= 17.276254515
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√(ROA÷CICC_Ratio)
= √(17.0307763123÷0.0511587169)
= 18.2455685374
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√(NetROIC÷CICC_Ratio)
= √(25.5305840264÷0.0511587169)
= 22.3393510606
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:: Sequential Bound Intrinsic P/E Bounds FY2025 (ROA, NetROIC, CTAC, CICC Based) ::
14.1103062917 — 17.276254515 — 18.2455685374 — 22.3393510606
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Lower Bound Intrinsic P/E FY2025 (ROA, NetROIC, CTAC, CICC Based)
= From √(ROA ÷ CTAC_Ratio) to √(NetROIC ÷ CTAC_Ratio)
= 14.1103062917 — 17.276254515
.
Median Bound Intrinsic P/E FY2025 (ROA, NetROIC, CTAC, CICC Based)
= From √(NetROIC ÷ CTAC_Ratio) to √(ROA ÷ CICC_Ratio)
= 17.276254515 — 18.2455685374
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Upper Bound Intrinsic P/E FY2025 (ROA, NetROIC, CTAC, CICC Based)
= From √(ROA ÷ CICC_Ratio) to √(NetROIC ÷ CICC_Ratio)
= 18.2455685374 — 22.3393510606
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Integrated Intrinsic P/E FY2025 (ROA, NetROIC, CTAC, CICC Based)
= (ROA ÷ CTAC_Ratio × NetROIC ÷ CICC_Ratio)^(1÷4)
= (17.0307763123÷0.0855384867×25.5305840264÷0.0511587169)^(1÷4)
= 17.7542976719
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Estimated Integrated Intrinsic P/E FY2026 (Growth, ROA, NetROIC, CTAC, CICC Based)
= (G ÷ √(CTAC_Ratio × CICC_Ratio) × ROA ÷ CTAC_Ratio × NetROIC ÷ CICC_Ratio)^(1÷6)
= Let’s say G is estimated as 16% for FY2026 & the ratios maintained the same
= (16÷√(0.0855384867×0.0511587169)×17.0307763123÷0.0855384867×25.5305840264÷0.0511587169)^(1÷6)
= 16.987607889
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Non-Gaap EPS FY2025
= USD 10.3507581966
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Estimated Non-Gaap EPS FY2026
= Non-Gaap EPS FY2025 × Estimated Growth Factor FY2026
= 10.3507581966 × 1.16
= USD 12.0068795081