Reddit Inc
NYSE:RDDT
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Reddit Inc
NYSE:RDDT
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Intrinsic Value
The intrinsic value of Reddit Inc (RDDT) under the Base Case is 150.81 USD per share. Compared with the current market price of 91.52 USD, the stock appears Undervalued by 39% .
The intrinsic value is calculated using the DCF method. The model assumes Reddit's net margin jumps to about 32% in 2026 and stays near that level, above last year's 24%. If its margin stayed at its five-year average of -15%, the estimate would be about -$64.
Do our valuations actually work? See backtest results .
Cheap or expensive for this stock?
This block shows whether today’s valuation is cheap or expensive compared with the stock’s own history, and what happened after similar valuations in the past.
We compare the gap between the stock’s price and our estimated value over time.
- Undervalued can still be historically expensive. The stock may trade below our estimated value, but usually offer an even bigger discount.
- Overvalued can still be historically cheap. The stock may trade above our estimated value, but usually carry an even higher premium.
Market expectations can differ from our model, which may not fully capture everything affecting the price. That is why some stocks regularly trade above our estimated value and others below it.
The scale and chart show how today’s valuation compares with the past. The cards summarize past returns and waiting times until the stock stopped being cheap or expensive. This can happen because the price changed, our estimated value changed, or both.
Only completed periods are included. These are past results, not forecasts. The usual historical range does not necessarily mean fair value.
Fundamental Analysis
What Reddit Does
Reddit runs a large network of topic-based communities where people ask questions, share opinions, post links, and discuss everything from hobbies to news to product advice. Its main users are everyday internet users, while businesses also use Reddit to understand what people think about brands, products, and trends. The site’s core product is its discussion platform, organized into communities called subreddits, which gives it a place in the middle of online conversation rather than traditional social media feeds.
- Headquarters
- United States of America US
- Employees
- 2 555
- IPO date
- Mar 21, 2024
Reddit has a narrow economic moat
Reddit’s established communities attract people who contribute answers and discussions, making those communities more useful and attracting further participation. In our assessment, a newcomer can copy the website’s features more easily than it can recreate those active groups and their accumulated knowledge.
Read the full moat analysis
Earnings Waterfall
Reddit Inc
The intrinsic value for Reddit Inc (RDDT) under the Base Case is 150.81 USD.
Compared with the current market price of 91.52 USD, the stock appears Undervalued by 39% .