* Note: Prices are in Million (M) USD.
Description:
Snap Inc. is an innovative technology company based in Santa Monica, California, renowned for its flagship multimedia messaging application, Snapchat, which integrates augmented reality experiences to enhance user interaction. With a diverse portfolio that includes hardware like Spectacles, Snap Inc. continues to invest heavily in augmented reality technologies, thereby positioning itself at the forefront of digital engagement and advertising solutions. The company's commitment to fostering creative expression and building community offers significant growth opportunities in the rapidly evolving landscape of social media and digital advertising, making it a compelling consideration for institutional investors.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $926 M
Debt : $3,608 M
EBITDA : $-298 M
Net Debt (Debt - Cash): $2,682 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Services-computer programming, data processing, etc.
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 10 overlapping fiscal years (max 20).Average Free Cash Flow: $-268 M
Average Revenue: $2,538 M
Revenue Converted To Free Cash Flow (%): -10.6%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $5,361 M
Revenue 5 Years Ago (2019-12-31): $1,716 M
Total Growth over 5 Years: 212.5%
5-Year Revenue CAGR (Historical): 25.6%
Forward 5-Year CAGR (Tapered): 12.8%
Since historical Revenue CAGR 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): $1,659 M
Share Count 5 Years Ago (2020-12-31): $1,456 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): $-0.33
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.33
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:
Using last 10 valid ROE years (max 20).Average ROE: -49.0%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $7.59
52-Week Low: $6.90
Threshold Price (15% Above 52-Week Low): $7.94
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $13,079 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 3% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share) (TTM ending 2025-06-30): $0.24
Owners' Earnings (FCF/Share, latest positive annual) (2024-12-31): $0.13
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 19 points to above Snap Inc (SNAP) stock.
Fair Value PE 20, Industry Based PE 20, Growth Based PE 15, Risk-Free Anchored PE (25% MoS) 18.2. Based on these 4 values, average assigned is 18.30. The fair value of Snap Inc (SNAP) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
