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Snap Inc (SNAP) Fair Value & Analysis

Communication Services · US · Market cap $8.0B · ISIN US83304A1060

What is Snap Inc really worth?

SI Snap Inc logo Snap Inc SNAP · US
Price$5.70
Fair Value$1.43
Upside−74.9%
Quality49/100

Below-average quality, and trading another 299% above our fair value of $1.43.

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Risks

!Mixed Growth (revenue 5y +18.8 %/yr)
!Loss-making · -6.7% net margin
!High debt · generates free cash flow
!Trails peers (3/13)
!Narrow moat 12/100
!Evidence only medium, so the estimate is less certain
!The models disagree: range $0.2860 to $2.65
!Weak on balance sheet: 24 out of 100
Evidence: Medium Range $0.2860 – $2.65

Fair value as of: Sep 1, 2026

From 9 valuation models · updated 4 days ago

Share price −1.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case ($2.65). The favourable scenario is already priced in.
  • The model range is unusually wide ($0.2860 to $2.65). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (49/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

$83.11 $3.93 Fair Value $1.43 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 1, 2026.

How to read this chart

60‑month range $3.93 – $83.11 · fair‑value band $0.2860 – $2.65 · the $5.70 price screens above the $1.43 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 1, 2026.

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Analysis

Snap Inc (SNAP) currently trades at $5.70, while our model-based Fair Value estimate is $1.43, implying the stock looks roughly 298.6% overvalued today. The Quality Score stands at 49/100 (below-average quality), in the Communication Services sector. Bull case: the DCF Models group reads highest at a median of $5.88 per share, and 5 of the 9 models we run sit above the $5.70 price. Bear case: the Asset-Based group reads lowest at $1.09, and 4 of the 9 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Snap Inc generated revenue of $6.1B at a net margin of −6.7%. Revenue grew 12.1% year over year. It earns a return on equity of −18.7%. Net debt stands at $3.7B. Fundamentals as of Sep 1, 2026

Our scenario range runs from $0.2860 (bear case) to $2.65 (bull case); at $5.70, 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 50% 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 −75%, SNAP screens richer than that median.

Fair Value models

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.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF $3.20 $5.88 $14.22 73
Growth DCF $2.90 $6.61 $13.88 72
Gordon GGM $9.27 $18.47 $27.96 67
All 9 models by family
DCF Models
FCF DCF $3.20 $5.88 $14.22 73
5Y Revenue Exit $1.91 $4.45 $9.76 66
10Y Revenue Exit $2.23 $6.66 $9.38 65
Dividend Discount
Gordon GGM $9.27 $18.47 $27.96 67
DDM Multi-Stage $9.27 $15.96 $19.49 67
Multiples
EV/Revenue $1.08 $2.30 $3.51 51
Asset-Based
NCAV (Graham) $0.8100 $1.09 $1.63 54
Growth DCF
Growth DCF $2.90 $6.61 $13.88 72
Rev-Margin DCF $2.02 $5.34 $11.76 66

Widest divergence: Dividend Discount ($15.96) versus Asset-Based ($1.09). Highest evidence: FCF DCF (73).

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Key figures & financial health

P/S ratio 1.57 TTM
EPS (TTM) $−0.2400
Net margin −7.8% FY2025
Return on equity −18.7% TTM
Return on assets (EBIT) −12.2% avg 5y
Operating margin −4.9% TTM
More key figures
Growth
Revenue (TTM) $6.1B TTM
Revenue growth (YoY) +12.1% 3y avg +8.8%
EPS growth (YoY) +396%
Balance sheet & cash flow
Free cash flow $437M FY2025
Net debt $3.7B FY2025 · ≈ 8.4 yrs of FCF

Figures from reported company fundamentals · as of Sep 1, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 49/100

Of which business quality 49 · Market factors (momentum, volatility) 28

Profitability 26
Margins and returns on capital today
Quality Growth 78
Are margins and returns improving?
Cashflow 47
Earnings quality: real cash, not paper profit
Fin. Strength 26
Balance sheet, leverage, solvency risk
Investment 97
Disciplined investing over empire-building
Low Volatility 31
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 19
Distance to the 52-week high (market factor)
Net Issuance 52
Buybacks instead of dilution

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

Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and snaps.

Full company description

Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and snaps. It also provides Snapchat+, Lens+, and Snapchat Platinum, a subscription service that provides subscribers access to exclusive, experimental, and pre-release features; Spectacles, an augmented reality (AR) glasses; and advertising products, including AR ads and Snap ads comprises a single image or video ads, collection ads, dynamic ads, story ads, commercials, sponsored snaps, and promoted places. In addition, the company offers campaign management and delivery, an advertising platform that provides automated, sophisticated, and scalable ad buying and campaign management; and measuring advertising effectiveness solutions. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Snap Inc reported revenue of $5.9B in FY2025 versus $4.1B in FY2021, a compound +9.6%/yr. Reported net income was −$460M in FY2025.

Growth Quality 62/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$5.9B
Latest YoY
+10.6%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.8%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.8%
Avg. revenue growth/yr (10Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+58.7%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue +9.6%/yr
FY21 $4.1B
FY22 $4.6B
FY23 $4.6B
FY24 $5.4B
FY25 $5.9B
Net income
FY21 −$488M
FY22 −$1.4B
FY23 −$1.3B
FY24 −$698M
FY25 −$460M

SNAP screens 299% overvalued. Compare with Alphabet Inc →

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Cite: Fair Value Calculator (2026). "Snap Inc Fair Value". https://www.fairvalue-calculator.com/stock/SNAP

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

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.

Quality Score 49 · Below median
Fair Value upside −75% · Bottom 25%
Return on assets −3% · Bottom 25%
Net margin (TTM) −7% · Below median
Operating margin (TTM) −5% · Below median
Revenue growth 12% · Above median
Dividend yield (TTM) 15.5% · Top 25%
Debt / equity 1.53× · Higher than 75% of peers

Valuation Multiples vs Internet Content & Information median · lower = cheaper

P/B 3.51× · Pricier than 75% of peers
P/S (TTM) 1.31× · Cheaper than median
P/FCF 18.3× · Pricier than median
PEG 496.06× · Pricier than 75% of peers

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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE61 · sector 31
PAST0 · sector 9
HEALTH24 · sector 98
DIVIDEND100 · sector 36

VALUE 0: the price sits above our fair-value range.

Insider activity: 42/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Internet Content & Information stocks, each showing price versus our Fair Value estimate (as of Sep 1, 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%
Reddit, Inc RDDT $153.29 $39.59 −74%
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%

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Frequently asked questions

Is Snap Inc (SNAP) overvalued or undervalued?
As of Sep 1, 2026, our model estimates a fair value of $1.43 versus a price of $5.70, about −75% upside (overvalued).
What is the fair value of SNAP?
Our model-based fair value for Snap Inc is $1.43 (as of Sep 1, 2026), built from audited fundamentals. The current price: $5.70.
What is the quality score of SNAP?
Snap Inc has a Quality Score of 49/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Snap Inc (SNAP)?
Snap Inc reported trailing-twelve-month revenue of about $6.1B (latest available figure, as of Sep 1, 2026).
What is the net profit margin of SNAP?
The net profit margin of Snap Inc is about −6.7%, meaning it is currently running at a net loss. Based on the latest reported figures.
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