SNAP Relative Valuation
SNAP'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, SNAP is overvalued; if below, it's undervalued.
Historical Valuation
Snap Inc (SNAP) is now in the Fair zone, suggesting that its current forward PE ratio of 21.18 is considered Fairly compared with the five-year average of 99.73. The fair price of Snap Inc (SNAP) is between 3.99 to 65.51 according to relative valuation methord.
Relative Value
Fair Zone
3.99-65.51
Current Price：8.24
Fair
21.18
PE
1Y
3Y
5Y
Trailing
Forward
18.23
EV/EBITDA
Snap Inc. (SNAP) has a current EV/EBITDA of 18.23. The 5-year average EV/EBITDA is 27.56. The thresholds are as follows: Strongly Undervalued below -535.58, Undervalued between -535.58 and -254.01, Fairly Valued between 309.13 and -254.01, Overvalued between 309.13 and 590.70, and Strongly Overvalued above 590.70. The current Forward EV/EBITDA of 18.23 falls within the Historic Trend Line -Fairly Valued range.
-31.32
EV/EBIT
Snap Inc. (SNAP) has a current EV/EBIT of -31.32. The 5-year average EV/EBIT is -55.39. The thresholds are as follows: Strongly Undervalued below -198.60, Undervalued between -198.60 and -126.99, Fairly Valued between 16.21 and -126.99, Overvalued between 16.21 and 87.82, and Strongly Overvalued above 87.82. The current Forward EV/EBIT of -31.32 falls within the Historic Trend Line -Fairly Valued range.
8.57
PS
Snap Inc. (SNAP) has a current PS of 8.57. The 5-year average PS is 8.15. The thresholds are as follows: Strongly Undervalued below -6.89, Undervalued between -6.89 and 0.63, Fairly Valued between 15.67 and 0.63, Overvalued between 15.67 and 23.19, and Strongly Overvalued above 23.19. The current Forward PS of 8.57 falls within the Historic Trend Line -Fairly Valued range.
19.83
P/OCF
Snap Inc. (SNAP) has a current P/OCF of 19.83. The 5-year average P/OCF is 163.98. The thresholds are as follows: Strongly Undervalued below -172.49, Undervalued between -172.49 and -4.25, Fairly Valued between 332.21 and -4.25, Overvalued between 332.21 and 500.44, and Strongly Overvalued above 500.44. The current Forward P/OCF of 19.83 falls within the Historic Trend Line -Fairly Valued range.
28.65
P/FCF
Snap Inc. (SNAP) has a current P/FCF of 28.65. The 5-year average P/FCF is 51.51. The thresholds are as follows: Strongly Undervalued below -924.23, Undervalued between -924.23 and -436.36, Fairly Valued between 539.38 and -436.36, Overvalued between 539.38 and 1027.25, and Strongly Overvalued above 1027.25. The current Forward P/FCF of 28.65 falls within the Historic Trend Line -Fairly Valued range.
Snap Inc (SNAP) has a current Price-to-Book (P/B) ratio of 6.58. Compared to its 3-year average P/B ratio of 7.62 , the current P/B ratio is approximately -13.64% higher. Relative to its 5-year average P/B ratio of 14.92, the current P/B ratio is about -55.87% higher. Snap Inc (SNAP) has a Forward Free Cash Flow (FCF) yield of approximately 2.81%. Compared to its 3-year average FCF yield of 0.78%, the current FCF yield is approximately 258.26% lower. Relative to its 5-year average FCF yield of 0.55% , the current FCF yield is about 406.76% lower.
6.58
P/B
Median3y
7.62
Median5y
14.92
2.81
FCF Yield
Median3y
0.78
Median5y
0.55
Competitors Valuation Multiple
The average P/S ratio for SNAP's competitors is 55.50, providing a benchmark for relative valuation. Snap Inc Corp (SNAP) exhibits a P/S ratio of 8.57, which is -84.56% above the industry average. Given its robust revenue growth of 9.78%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SNAP decreased by 30.74% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.37B to 1.51B.
The secondary factor is the P/E Change, contributed -2.08%to the performance.
Overall, the performance of SNAP in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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