RDDT Relative Valuation
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. If the market price exceeds this fair value range, RDDT is overvalued; if below, it's undervalued.
Historical Valuation
Reddit Inc (RDDT) is now in the Fair zone, suggesting that its current forward PS ratio of 0.00 is considered Fairly compared with the five-year average of 47.85. The fair price of Reddit Inc (RDDT) is between NaN to NaN according to relative valuation methord.
Relative Value
Fair Zone
NaN-NaN
Current Price：222.75
Fair
66.92
PE
1Y
3Y
5Y
Trailing
Forward
36.24
EV/EBITDA
Reddit Inc. (RDDT) has a current EV/EBITDA of 36.24. The 5-year average EV/EBITDA is 44.21. The thresholds are as follows: Strongly Undervalued below 16.21, Undervalued between 16.21 and 30.21, Fairly Valued between 58.21 and 30.21, Overvalued between 58.21 and 72.21, and Strongly Overvalued above 72.21. The current Forward EV/EBITDA of 36.24 falls within the Historic Trend Line -Fairly Valued range.
61.39
EV/EBIT
Reddit Inc. (RDDT) has a current EV/EBIT of 61.39. The 5-year average EV/EBIT is 126.37. The thresholds are as follows: Strongly Undervalued below -333.19, Undervalued between -333.19 and -103.41, Fairly Valued between 356.15 and -103.41, Overvalued between 356.15 and 585.94, and Strongly Overvalued above 585.94. The current Forward EV/EBIT of 61.39 falls within the Historic Trend Line -Fairly Valued range.
15.42
PS
Reddit Inc. (RDDT) has a current PS of 15.42. The 5-year average PS is 12.31. The thresholds are as follows: Strongly Undervalued below 3.36, Undervalued between 3.36 and 7.83, Fairly Valued between 16.78 and 7.83, Overvalued between 16.78 and 21.26, and Strongly Overvalued above 21.26. The current Forward PS of 15.42 falls within the Historic Trend Line -Fairly Valued range.
40.56
P/OCF
Reddit Inc. (RDDT) has a current P/OCF of 40.56. The 5-year average P/OCF is 49.34. The thresholds are as follows: Strongly Undervalued below 20.32, Undervalued between 20.32 and 34.83, Fairly Valued between 63.86 and 34.83, Overvalued between 63.86 and 78.37, and Strongly Overvalued above 78.37. The current Forward P/OCF of 40.56 falls within the Historic Trend Line -Fairly Valued range.
40.77
P/FCF
Reddit Inc. (RDDT) has a current P/FCF of 40.77. The 5-year average P/FCF is 57.37. The thresholds are as follows: Strongly Undervalued below 17.69, Undervalued between 17.69 and 37.53, Fairly Valued between 77.22 and 37.53, Overvalued between 77.22 and 97.06, and Strongly Overvalued above 97.06. The current Forward P/FCF of 40.77 falls within the Historic Trend Line -Fairly Valued range.
Reddit Inc (RDDT) has a current Price-to-Book (P/B) ratio of 16.02. Compared to its 3-year average P/B ratio of 10.31 , the current P/B ratio is approximately 55.40% higher. Relative to its 5-year average P/B ratio of 10.31, the current P/B ratio is about 55.40% higher. Reddit Inc (RDDT) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 0.55%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 0.55% , the current FCF yield is about -100.00% lower.
16.16
P/B
Median3y
10.31
Median5y
10.31
1.22
FCF Yield
Median3y
0.55
Median5y
0.55
Competitors Valuation Multiple
The average P/S ratio for RDDT's competitors is , providing a benchmark for relative valuation. Reddit Inc Corp (RDDT) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 67.91%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of RDDT increased by 36.29% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 8.57 to 27.81.
The secondary factor is the Revenue Growth, contributed 67.91%to the performance.
Overall, the performance of RDDT in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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