Seeing Shein valued at $60 billion, Temu's user base and GMV are both higher than Shein's.
Assuming Temu is valued at $50 billion, then deducting Temu from PDD's valuation leaves the domestic PDD business worth $100 billion. Then deducting net cash ($60 billion in cash minus interest-bearing debt) PDD's domestic value would be $40 billion? Keep in mind PDD's domestic business earns $15 billion annually. So many funds are accumulating PDD - super profitable plus having an unbeatable cash position on hand. According to the situation with American companies, they generally buy back and destroy large quantities of stock. But Chinese companies rarely do this. PDD's founder apparently doesn't want the stock price to rise - which is actually very difficult for shareholders. Nobody knows what the company is doing with all this cash? $PDD
Seeing Shein valued at $60 billion, Temu's user base and GMV are both higher than Shein's.
Assuming Temu is valued at $50 billion, then deducting Temu from PDD's valuation leaves the domestic PDD business worth $100 billion.
Then deducting net cash ($60 billion in cash minus interest-bearing debt)
PDD's domestic value would be $40 billion?
Keep in mind PDD's domestic business earns $15 billion annually.
So many funds are accumulating PDD - super profitable plus having an unbeatable cash position on hand.
According to the situation with American companies, they generally buy back and destroy large quantities of stock.
But Chinese companies rarely do this.
PDD's founder apparently doesn't want the stock price to rise - which is actually very difficult for shareholders.
Nobody knows what the company is doing with all this cash? $PDD