Reddit, Inc. (RDDT) Fair Value & Analysis
Communication Services · US · Market cap $38.6B · ISIN US75734B1008
What is Reddit, Inc. really worth?
Reddit, Inc.
RDDT · US
A solid business, but trading 364% above our fair value of $33.65.
Strengths
Risks
Fair value as of: Aug 25, 2026
From 24 valuation models · updated 11 days ago
Share price −2.5% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- A high-quality business (quality 71/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
- The price sits above even our optimistic bull case ($41.09). The favourable scenario is already priced in.
Price vs Fair Value (3 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 25, 2026.
How to read this chart
30‑month range $34.00 – $270.71 · fair‑value band $26.22 – $41.09 · the $155.99 price screens above the $33.65 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 25, 2026.
Analysis
Reddit, Inc. (RDDT) currently trades at $155.99, while our model-based Fair Value estimate is $33.65, implying the stock looks roughly 363.6% overvalued today. The Quality Score stands at 71/100 (solid quality), in the Communication Services sector. Bull case: the Growth Earnings group reads highest at a median of $121.77 per share, and 0 of the 24 models we run sit above the $155.99 price. Bear case: the Asset-Based group reads lowest at $9.71, and 24 of the 24 models stay below the price. Evidence for this calculation is medium.
Over the trailing twelve months, Reddit, Inc. generated revenue of $2.5B at a net margin of 28.6%. Revenue grew 69.1% year over year. It earns a return on equity of 26.2%. The balance sheet holds a net cash position of $930M. Fundamentals as of Aug 25, 2026
Our scenario range runs from $26.22 (bear case) to $41.09 (bull case); at $155.99, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 45% below its 52-week high and 41% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at −6% fair-value upside, at −78%, RDDT screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $2.38 per share, which is 7.1 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 24 models by family
Widest divergence: Growth Earnings ($121.77) versus Asset-Based ($9.71). Highest evidence: FCF DCF (70).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 25, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 72 · Market factors (momentum, volatility) 15
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Reddit, Inc. operates a digital community in the United States and internationally. The company's platform enables user to engage in conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share laughs, and find belonging.
Full company description
Reddit, Inc. operates a digital community in the United States and internationally. The company's platform enables user to engage in conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share laughs, and find belonging. It also organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. Reddit, Inc. was founded in 2005 and is headquartered in San Francisco, California.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Reddit, Inc. reported revenue of $2.2B in FY2025 versus $485M in FY2021, a compound +46.0%/yr. Reported net income was $530M in FY2025.
RDDT screens 364% overvalued. Compare with Alphabet Inc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Reddit Is One of Today’s Top S&P 500 Stocks. It Has a Lot to Do With Its Google Data Deal.
- Should You Hold on to RDDT Stock Despite Its 15% Dip in Three Months?
- Reddit’s Next AI Catalyst Isn’t User Growth — It’s What Alphabet’s Google and OpenAI Do Next
- Reddit to Present at the Goldman Sachs 2026 Communacopia + Technology Conference
Peer Group
Internet Content & Information · 153 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Internet Content & Information median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 54/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Internet Content & Information stocks, each showing price versus our Fair Value estimate (as of Aug 25, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Alphabet Inc GOOGL | $340.65 | $145.14 | −57% |
| Meta Platforms, Inc META | $571.10 | $534.91 | −6% |
| Tencent Holdings 0700 | HK$455.20 | HK$449.03 | −1% |
| Spotify Technology S.A SPOT | $547.51 | $211.87 | −61% |
| Baidu, Inc 89888 | HK$79.10 | HK$28.84 | −64% |
| Kuaishou Technology, an investment holding company, 81024 | HK$34.50 | HK$63.28 | +83% |
| NAVER Corporation 035420 | 213,500 KRW | 231,585 KRW | +8% |
| Tencent Music Entertainment Group 1698 | HK$35.14 | HK$66.77 | +90% |
| REA Group REA | A$177.42 | A$88.53 | −50% |
| Pinterest, Inc PINS | $23.19 | $14.38 | −38% |
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