* Note: Prices are in Million (M) USD.
Description:
Reddit, Inc. operates a website that organizes digital communities. The company is headquartered in San Francisco, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $562 M
Debt : $0 M
EBITDA : $48 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: TECHNOLOGY
Industry: SERVICES-COMPUTER PROCESSING & DATA PREPARATION
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 95.03
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $-33 M
Average Revenue: $697 M
Revenue Converted To Free Cash FLow(%): -5%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 72.48%
Since Free Cash Flow (FCF) to Revenue percentage is negative, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,300 M
Revenue 4 Years Ago (2020-12-31): $229 M
Last 5 Years Average Revenue Growth: 94%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $145 M
Share Count 5 Years Ago (2020-12-31): $48 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.47
Trailing 12-Month Earnings Per Share (EPS): $1.50
Average Earnings Per Share (EPS): $1.99
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: -12%
Since Average ROE is negative, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $189
52-Week Low: $49
Threshold Price (15% Above 52-Week Low): $56
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $27,353 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.20% exposure of Total Portfolio.
Value-Trade has assigned 17 points to above Reddit, Inc. (RDDT) stock.
Last 1 Years Avg PE (Limited to last 1 years of EPS data) 40, Fair Value PE 20, Industry Based PE is 20 and Growth based PE is 46. Based on these all values average assigned is 31.50.
Value-Trades has assined P/E value 31.50. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.985.
The fair value of Reddit, Inc. (RDDT) stock should be (31.50 x $1.985) = $62.53
