SNAP Valuation

Snap Inc

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7.140

+0.04(0.563%)1D

Overview
Forecast
Valuation
Earnings

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 Undervalued zone, suggesting that its current forward PS ratio of 1.92 is considered Undervalued compared with the five-year average of 99.42. The fair price of Snap Inc (SNAP) is between 9.97 to 54.83 according to relative valuation methord. Compared to the current price of 7.10 USD , Snap Inc is Undervalued By 28.76%.

Relative Value

Fair Zone

9.97-54.83

Current Price：7.10

28.76%

Undervalued

25.23

Trailing

Forward

21.87

EV/EBITDA

Snap Inc. (SNAP) has a current EV/EBITDA of 21.87. The 5-year average EV/EBITDA is 40.93. The thresholds are as follows: Strongly Undervalued below -539.59, Undervalued between -539.59 and -249.33, Fairly Valued between 331.20 and -249.33, Overvalued between 331.20 and 621.46, and Strongly Overvalued above 621.46. The current Forward EV/EBITDA of 21.87 falls within the Historic Trend Line -Fairly Valued range.

-17.84

EV/EBIT

Snap Inc. (SNAP) has a current EV/EBIT of -17.84. The 5-year average EV/EBIT is -57.05. The thresholds are as follows: Strongly Undervalued below -199.08, Undervalued between -199.08 and -128.07, Fairly Valued between 13.96 and -128.07, Overvalued between 13.96 and 84.98, and Strongly Overvalued above 84.98. The current Forward EV/EBIT of -17.84 falls within the Historic Trend Line -Fairly Valued range.

1.95

Snap Inc. (SNAP) has a current PS of 1.95. The 5-year average PS is 8.59. The thresholds are as follows: Strongly Undervalued below -6.55, Undervalued between -6.55 and 1.02, Fairly Valued between 16.15 and 1.02, Overvalued between 16.15 and 23.72, and Strongly Overvalued above 23.72. The current Forward PS of 1.95 falls within the Historic Trend Line -Fairly Valued range.

21.87

P/OCF

Snap Inc. (SNAP) has a current P/OCF of 21.87. The 5-year average P/OCF is 162.21. The thresholds are as follows: Strongly Undervalued below -214.93, Undervalued between -214.93 and -26.36, Fairly Valued between 350.79 and -26.36, Overvalued between 350.79 and 539.36, and Strongly Overvalued above 539.36. The current Forward P/OCF of 21.87 falls within the Historic Trend Line -Fairly Valued range.

33.13

P/FCF

Snap Inc. (SNAP) has a current P/FCF of 33.13. The 5-year average P/FCF is 56.10. The thresholds are as follows: Strongly Undervalued below -945.06, Undervalued between -945.06 and -444.48, Fairly Valued between 556.69 and -444.48, Overvalued between 556.69 and 1057.27, and Strongly Overvalued above 1057.27. The current Forward P/FCF of 33.13 falls within the Historic Trend Line -Fairly Valued range.

Snap Inc (SNAP) has a current Price-to-Book (P/B) ratio of 5.77. Compared to its 3-year average P/B ratio of 7.56 , the current P/B ratio is approximately -23.67% higher. Relative to its 5-year average P/B ratio of 15.56, the current P/B ratio is about -62.91% higher. Snap Inc (SNAP) has a Forward Free Cash Flow (FCF) yield of approximately 3.32%. Compared to its 3-year average FCF yield of 0.65%, the current FCF yield is approximately 411.65% lower. Relative to its 5-year average FCF yield of 0.41% , the current FCF yield is about 708.70% lower.

5.80

P/B

Median3y

7.56

Median5y

15.56

3.27

FCF Yield

Median3y

0.65

Median5y

0.41

Competitors Valuation Multiple

The average P/S ratio for SNAP's competitors is 8.21, providing a benchmark for relative valuation. Snap Inc Corp (SNAP) exhibits a P/S ratio of 1.95, which is -76.29% above the industry average. Given its robust revenue growth of 8.75%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Jack Henry & Associates Inc

Descartes Systems Group Inc

Performance Decomposition

Market capitalization of SNAP decreased by 23.55% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.24B to 1.34B.

The secondary factor is the Margin Expansion, contributed -2.89%to the performance.

Overall, the performance of SNAP in the past 1 year is driven by Revenue Growth. Which is more sustainable.

8.75%

1.24B → 1.34B

Revenue Growth

-2.89%

-20.10 → -19.52

Margin Expansion

-29.41%

-31.08 → -21.94

P/E Change

-23.55%