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Reddit, Inc. — Intrinsic Value & Fair Price

RDDT
NYSECommunication ServicesInternet Content & InformationCIK 0001713445redditinc.comAbout RDDT
Last close · Oct 16, 2026156.05−3.31 (−2.08%)
Market cap$30.0B
Model value · DCF · Perpetuity growth · 5y
68.17
Reddit closed at $156.05 — overvalued by 129% vs model.
51.26the model's range104.79

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

Other models
41.66 – 134.89
Wall St. target
200.00 22% below
Above model, 1y
20 of 20 days

Price and model value

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Daily close

Research on RDDT

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How it is valued

Valued asHigh growth
High revenue growth (~66% recent)High profitability (24% net margin)Highly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for high-growth companies
Price / sales
13.2×
Revenue growth
69.4%
Gross margin
91.2%
Operating margin
20.1%
FCF margin
31.1%
EV / EBITDA
53.4×
Full financials

Analyst actions

third-party, quoted
09-18D.A. Davidson · target185.00
09-18BNP Paribas · target180.00
08-21Morgan Stanley · target210.00
05-19Wells Fargo · “Equal Weight” from “Overweight”downgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
1 more company lists RDDT as a comparable

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just RDDT. No account.

About Reddit

Reddit, Inc. oversees an internet-based service dedicated to fostering diverse online communities. This platform categorizes groups by shared passions, enabling its users to participate in dialogues through recounting experiences, sharing external web addresses, uploading visual and video content, and engaging in direct replies. Founded in 2005, the corporation maintains its central operations in San Francisco, California. Reddit, Inc. also functions as a controlled subsidiary of Advance Publications, Inc.

CEO
Steven Ladd Huffman
Headquarters
San Francisco, CA
Employees
2,555
IPO
2024-03-21
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.