Reddit, Inc. (RDDT) 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

-201.3%

-$95.14

vs $93.90 price

Levered DCF

-$0.03

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

31.09

Safe zone

Rating

B+

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
P/E	80.94×	-60.76×	-90.07×	-52×	-64.67×	-140.11×
P/B	14.63×	13.83×	-19.95×	5.59×	5.26×	17.95×
P/S	19.45×	22.67×	10.25×	12.36×	16.99×	35.99×
EV / EBITDA	76.96×	-61.62×	-107.25×	-52.18×	-55.43×	-142.59×
Gross margin	91.2%	90.5%	86.2%	84.3%	85.0%	76.0%
Operating margin	20.1%	-43.1%	-17.4%	-25.8%	-26.2%	-27.3%
Net margin	24.1%	-37.2%	-11.3%	-23.8%	-26.4%	-25.9%
Current ratio	11.56×	12.63×	11.08×	13.94×	22.72×	9.52×
Debt / equity	0.01×	0.01×	-0.06×	0.01×	0.01×	0.04×
Interest coverage	0×	0×	0×	0×	0×	0×
Dividend yield	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%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020
Return on equity	18.1%	-22.7%	22.0%	-10.8%	-8.2%	-12.9%
Return on invested capital	14.9%	-25.8%	-9.6%	-11.5%	-8.0%	-13.0%
Return on assets	16.4%	-20.7%	-5.7%	-9.9%	-7.8%	-11.3%
Free cash flow yield	1.6%	0.7%	-1.0%	-1.2%	-1.6%	-0.8%
Earnings yield	1.2%	-1.6%	-1.1%	-1.9%	-1.6%	-0.7%
Enterprise value	$41.9B	$28.9B	$7.9B	$7.8B	$6.9B	$8.1B
Net debt / EBITDA	-1.71×	1.14×	5.12×	2.78×	10.62×	1.61×
Cash conversion cycle (days)	-20	-36	-38	-6	7	85