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AppLovin Corporation — Intrinsic Value & Fair Price

APP
NASDAQTechnologySoftware - ApplicationCIK 0001751008applovin.comAbout APP
Last close · Oct 16, 2026266.13−13.16 (−4.71%)
Market cap$89.4B
Model value · DCF · Perpetuity growth · 5y
264.51
AppLovin closed at $266.13 — overvalued by 1% vs model.
203.20the model's range385.89

DCF · Perpetuity growth · 5y leads for a software company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
20.85 – 841.15
Wall St. target
457.50 42% below
Above model, 1y
11 of 20 days

Price and model value

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What the marks mean
Daily close

Research on APP

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How it is valued

Valued asSoftware
High revenue growth (~29% recent)High profitability (61% net margin)Highly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for software companies
Price / sales
16.5×
Revenue growth
16.4%
Gross margin
87.9%
FCF margin
71.9%
Rule of 40
88.3%
Operating margin
75.8%
Full financials

Analyst actions

third-party, quoted
10-14Goldman Sachs · target400.00
10-14Wedbush · target560.00
10-13Morgan Stanley · target400.00
08-11B of A Securities · “Neutral” from “Buy”downgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label

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About AppLovin

AppLovin Corporation provides a specialized software platform focused on empowering mobile application developers to enhance the marketing and revenue generation of their products. With operations spanning the United States and international markets, the company assists mobile app developers worldwide. Among its core software offerings is AppDiscovery, a marketing solution that intelligently connects advertiser demand with publisher supply through an auction-based model. Another key product is Adjust, an analytics platform that enables marketers to scale their mobile apps by offering capabilities for performance measurement, campaign optimization, and user data protection. Additionally, MAX is an in-app bidding software engineered to maximize the value derived from an app's advertising inventory by facilitating real-time competitive auctions. Its client base is broad, serving advertisers, publishers, internet platforms, and other stakeholders. Founded in 2011, the enterprise maintains its headquarters in Palo Alto, California.

CEO
Adam Arash Foroughi
Headquarters
Palo Alto, CA
Employees
887
IPO
2021-04-15
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.