AppLovin Corporation (APP) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-49.0%

$120.36

vs $236.12 price

Levered DCF

$127.40

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

13.07

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	68.48×	69.19×	39.46×	-20.25×	965.78×	-112.41×	181.11×	-47.59×
P/B	106.94×	100.11×	11.16×	2.06×	14.32×	-88.39×	-53.97×	-32.66×
P/S	41.65×	33.84×	7.62×	1.39×	10.96×	9.66×	13.93×	25.57×
EV / EBITDA	52.66×	47.07×	13.21×	11.9×	55.86×	78.09×	49.99×	51.98×
Gross margin	87.9%	83.9%	80.6%	55.4%	64.6%	61.7%	75.7%	88.9%
Operating margin	75.8%	59.3%	41.9%	-1.7%	5.4%	-4.3%	19.6%	50.2%
Net margin	60.8%	49.0%	19.4%	-6.8%	1.3%	-8.6%	12.0%	-53.8%
Current ratio	3.32×	2.19×	1.71×	3.35×	5.05×	1.11×	2.45×	3.58×
Debt / equity	1.66×	3.26×	2.53×	1.72×	1.56×	-10.7×	-4.66×	-2.1×
Interest coverage	20.06×	6.02×	2.82×	-0.28×	1.45×	-0.8×	2.63×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	156.2%	145.0%	28.4%	-10.1%	1.7%	79.0%	-46.4%	68.7%
Return on invested capital	60.7%	39.0%	15.2%	-0.8%	2.0%	-3.6%	18.7%	57.3%
Return on assets	45.9%	26.9%	6.7%	-3.3%	0.6%	-5.8%	9.9%	-48.4%
Free cash flow yield	1.7%	1.9%	7.5%	10.5%	1.2%	1.6%	1.4%	1.1%
Earnings yield	1.5%	1.4%	2.5%	-4.9%	0.1%	-0.9%	0.9%	-2.1%
Enterprise value	$229.3B	$111.9B	$16.7B	$6.1B	$32.4B	$15.4B	$14.6B	$12.9B
Net debt / EBITDA	0.24×	1.18×	2.12×	4.28×	3.12×	6.99×	2.73×	2.1×
Cash conversion cycle (days)	-289	-235	-191	12	-28	-22	-47	-312