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DDL: Higher Discount Rate Will Likely Pressure Shares Despite Margin Improvement

Update shared on 12 Dec 2025

Fair value Decreased 36%
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AnalystLowTarget's Fair Value
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1Y
-48.2%
7D
-1.9%

Analysts have reduced their price target on Dingdong (Cayman) by roughly one third to approximately 1.61 dollars, citing a combination of slightly slower expected revenue growth, a higher discount rate, and a lower future earnings multiple, partially offset by improved profit margin assumptions.

Valuation Changes

  • The fair value estimate has declined from approximately 2.51 dollars to 1.61 dollars per share.
  • The discount rate has risen slightly from about 8.58 percent to 8.73 percent, reflecting a modest increase in perceived risk or required return.
  • The revenue growth assumption has edged down from roughly 6.55 percent to 6.35 percent, indicating slightly more conservative top line expectations.
  • The net profit margin assumption has increased moderately from around 1.75 percent to 1.92 percent, implying improved profitability expectations.
  • The future P/E multiple has fallen significantly from about 9.77 times to 5.87 times, suggesting a more cautious view on the valuation investors are likely to assign to future earnings.

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