RDDT PE Ratio & Valuation, Is RDDT Overvalued

Historical Valuation

Reddit Inc (RDDT) is now in the Overvalued zone, suggesting that its current forward PS ratio of 16.84 is considered Overvalued compared with the five-year average of 48.77. The fair price of Reddit Inc (RDDT) is between 67.73 to 125.04 according to relative valuation method. Compared to the current price of 135.82 USD , Reddit Inc By Overvalued By 8.63%.

Relative Value

Fair Zone

67.73-125.04

Current Price：135.82

8.63%

Overvalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Reddit Inc (RDDT) has a current Price-to-Book (P/B) ratio of 17.55. Compared to its 3-year average P/B ratio of 10.60, the current P/B ratio is approximately 65.54% higher. Relative to its 5-year average P/B ratio of 10.60, the current P/B ratio is about 65.54% higher. Reddit Inc (RDDT) has a Forward Free Cash Flow (FCF) yield of approximately 1.11%. Compared to its 3-year average FCF yield of 0.58%, the current FCF yield is approximately 91.26% lower. Relative to its 5-year average FCF yield of 0.58%, the current FCF yield is about 91.26% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for RDDT competitors is 8.58, providing a benchmark for relative valuation. Reddit Inc Corp (RDDT.N) exhibits a P/S ratio of 16.84, which is 96.32% above the industry average. Given its robust revenue growth of 69.65%, this premium appears sustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of RDDT increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of RDDT in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is RDDT currently overvalued or undervalued?

What is Reddit Inc (RDDT) fair value?

RDDT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Reddit Inc (RDDT) is between 67.73 to 125.04 according to relative valuation method.

How does RDDT's valuation metrics compare to the industry average?

The average P/S ratio for RDDT's competitors is 8.58, providing a benchmark for relative valuation. Reddit Inc Corp (RDDT) exhibits a P/S ratio of 16.84, which is 96.32% above the industry average. Given its robust revenue growth of 69.65%, this premium appears sustainable.

What is the current P/B ratio for Reddit Inc (RDDT) as of Mar 12 2026?

As of Mar 12 2026, Reddit Inc (RDDT) has a P/B ratio of 17.55. This indicates that the market values RDDT at 17.55 times its book value.

What is the current FCF Yield for Reddit Inc (RDDT) as of Mar 12 2026?

As of Mar 12 2026, Reddit Inc (RDDT) has a FCF Yield of 1.11%. This means that for every dollar of Reddit Inc's market capitalization, the company generates 1.11 cents in free cash flow.

What is the current Forward P/E ratio for Reddit Inc (RDDT) as of Mar 12 2026?

As of Mar 12 2026, Reddit Inc (RDDT) has a Forward P/E ratio of 72.57. This means the market is willing to pay $72.57 for every dollar of Reddit Inc's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Reddit Inc (RDDT) as of Mar 12 2026?

As of Mar 12 2026, Reddit Inc (RDDT) has a Forward P/S ratio of 16.84. This means the market is valuing RDDT at $16.84 for every dollar of expected revenue over the next 12 months.

RDDT Valuation