Reddit, Inc. (RDDT) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Reddit, Inc. stock $112, price $93.81, upside +19.5%, quality 77 out of 100. Rating: undervalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
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The stock costs 16% less than our calculation considers fair.
Fair value $112.08 · Undervalued (16%)
Quality 77/100
Healthy Growth(revenue 5y +57.3 %/yr in USD)
Highly profitable · 32.1% net margin (TTM)
Generates free cash flow
Ranks above peers(8/13)
Positive coverage
Last quarter vs. a year ago: revenue +53%, profit +75%.
Wide moat90/100 · thin data
Insiders sold $87.2M (6M)
Some data
Quality growth
Risks from the AI analysis
🚩Google AI overviews cutting search referrals sharply🚩AI search reduces referral traffic🚩Antitrust claims over Google data deal🚩Lawsuits over unlicensed AI data use
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
32‑month range $34.00 – $270.71 · fair‑value band $64.79 – $187.78 · the $93.81 price screens below the $112.08 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.
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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.
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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.
Stock analysis
Reddit, Inc. (RDDT) currently trades at $93.81, while our model-based Fair Value estimate is $112.08, implying the stock looks roughly 16% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $121.82 per share, and 4 of the 24 models we run sit above the $93.81 price.
Bear case: the Asset-Based group reads lowest at $13.99, and 20 of the 24 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $64.79 (bear) to $187.78 (bull), the price of $93.81 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 77/100 (high quality), in the Communication Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
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.
Key figures
Market cap $19.0B Large · P/E ratio 18.7 · P/S ratio 6.14 · EPS (TTM) $4.86 · Net margin 32.1% · Return on equity 32.0% · Return on assets (EBIT) −7.5% · Operating margin 29.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 90 out of 100 (low confidence).
What moves the price
The share trades about 64% below its 52-week high and 3% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at 33% fair-value upside, at 19%, RDDT screens richer than that median.
Fair Value models
Bear$64.79Fair Value $112.08Bull$187.78
Price $93.81 · Upside +19.5%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($4.13 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 5 officers or directors sold shares worth $87.2M and none bought.
SaleMary Porter GaleDirector6,000 shares at $98.00$588,000Nov 4, 2026
SaleJennifer L. WongChief Operating Officer12× since Nov 24, 2025: 612,803 shares, avg. $177.48$108.8MOct 14, 202610b5-1 plan
SaleSteve Ladd HuffmanCEO & President, Director, 10% owner23× since Nov 14, 2025: 411,924 shares, avg. $173.43$71.4MOct 13, 202610b5-1 plan
SaleRobert A. SauerbergDirector5,128 shares at $159.92$820,070Aug 25, 2026
SaleMichelle Marie ReynoldsChief Accounting Officer4× since Nov 24, 2025: 17,563 shares, avg. $211.26$3.7MJul 1, 202610b5-1 plan
SaleChristopher Brian SloweChief Technology Officer11× since Nov 10, 2025: 159,000 shares, avg. $188.66$30.0MApr 8, 202610b5-1 plan
BuySarah E FarrellDirector2× since Feb 10, 2026: 61,000 shares, avg. $145.42$8.9MMar 13, 2026
SaleBenjamin Seong LeeChief Legal Officer4× since Nov 24, 2025: 117,007 shares, avg. $229.33$26.8MFeb 23, 202610b5-1 plan
SaleAndrew VolleroChief Financial Officer2× since Jan 6, 2026: 12,887 shares, avg. $255.61$3.3MJan 13, 202610b5-1 plan
Plus 46 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+69.4%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+48.9%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+57.3%
Start year 2020 (pandemic)
’20
’21
’22
’23
’24
’25
Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
−27.3% (2020) → 20.1% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: no profitable base year
not computed
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+17.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+28.8%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +14.8% a year for the price and +25.8% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: The business shows margin strength yet faces thin public data and limited durable signals across categories along with a short operating history.
Main risk: Generative AI tools from Google and OpenAI could provide direct answers drawn from Reddit content and thereby cut the search referrals that drive a large share of visits to its forums.
Bull case: Reddit could negotiate deeper integrations with AI providers that drive new users back to its forums while expanding its own licensed data offerings and ad tools.
Bear case: Widespread adoption of AI answers could sharply reduce visits to Reddit, while regulatory or legal setbacks limit its ability to license data profitably and erode community engagement.
Reddit is testing a shift to a logged-in-only experience as Google search referrals drop sharply due to AI overviews and related changes. The move aims to boost direct engagement and protect content for licensing, yet it risks slowing new user discovery on a platform long open to casual browsing. Will the focus on core logged-in users ultimately lift monetization more than it limits reach?
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Internet Content & Information · 126 stocks
Beats the industry median on 8/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score77 · Top 25%
Fair Value upside+19.5% · Above median
Profitability
Return on equity (12 months)32.0% · Top 25%
Return on assets16.4% · Top 25%
Net margin (12 months)32.1% · Top 25%
Operating margin (12 months)29.2% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)53.0% · Top 25%
Valuation Multiplesvs Internet Content & Information median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Reddit, Inc. Fair Value". https://www.fairvalue-calculator.com/stock/RDDT
Frequently asked questions
Is Reddit, Inc. (RDDT) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of $112.08 versus a price of $93.81, about +19% upside (undervalued).
What is the fair value of RDDT?
Our model-based fair value for Reddit, Inc. is $112.08 (as of Nov 5, 2026), built from audited fundamentals. The current price: $93.81.
What is the quality score of RDDT?
Reddit, Inc. has a Quality Score of 77/100. 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 price target for Reddit, Inc. (RDDT)?
Our model-based price target is the fair value of $112.08 (as of Nov 5, 2026) from 24 valuation models. Cautious scenario $64.79, optimistic scenario $187.78. It is a calculation from audited fundamentals, not an analyst target.
What is the Reddit, Inc. stock forecast for 2026?
Our models put fair value at $112.08, about +19% upside versus a price of $93.81 (undervalued). Cautious scenario $64.79, optimistic scenario $187.78. The calculation is refreshed regularly with new filings.
What is the revenue of Reddit, Inc. (RDDT)?
Reddit, Inc. reported trailing-twelve-month revenue of about $3.1B (latest available figure, as of Nov 5, 2026).
What growth is priced into Reddit, Inc. (RDDT)?
For today's price to be fair in a discounted-cash-flow model, Reddit, Inc. would have to grow free cash flow by +17.6 % per year for five years (discount rate 11.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +57.3 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of RDDT use?
Our models discount Reddit, Inc. at 11.5 %: a base by market capitalisation (large), damped by beta 2.28, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Reddit, Inc. that is +17.6 % per year a year over ten years, using the same discount rate (11.5 %) and the same formula as our fair value.
How much growth has Reddit, Inc. (RDDT) delivered so far?
Over the past 5 years revenue at Reddit, Inc. grew +57.3 % a year. The price currently implies +17.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Reddit, Inc. (RDDT) growing?
The median revenue growth in the sector is +3.7 % a year. That is the yardstick for the growth priced into Reddit, Inc. (+17.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Reddit, Inc. (RDDT)?
The free-cash-flow yield on the price is 3.61 %: that much free cash flow Reddit, Inc. produces per unit of market value. When it exceeds the discount rate of our models (11.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Reddit, Inc. (RDDT)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Reddit, Inc. it is $112.08 per share (as of Nov 5, 2026), against a price of $93.81. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Reddit, Inc. stock overvalued or undervalued in 2026?
As of Nov 5, 2026, RDDT trades below its calculated fair value: price $93.81, fair value $112.08, a gap of about +19% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RDDT?
No. The price is what the market pays today ($93.81); the fair value is what the company's own numbers justify ($112.08). For Reddit, Inc. the two are $18.27 per share apart. That gap is exactly why we show both numbers side by side.
How much is Reddit, Inc. worth?
The market values Reddit, Inc. at about $19.0B (market capitalisation, as of Nov 5, 2026). Per share that is $93.81; our models calculate a fair value of $112.08 per share.
What do the bullish and bearish scenarios say about RDDT?
Our models span a range for Reddit, Inc.: cautious scenario $64.79, base $112.08, optimistic $187.78 per share (as of Nov 5, 2026, price $93.81). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RDDT?
Reddit, Inc. trades at a price-to-earnings ratio of 18.7 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $112.08 is built from several models across several years. Other multiples: PEG 0.5, P/B 6.5, P/S 6.1, EV/EBITDA 19.5.
What is the PEG ratio of RDDT?
The PEG ratio of Reddit, Inc. is 0.46 (P/E divided by earnings growth, as of Nov 5, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Reddit, Inc. (RDDT)?
Balance-sheet figures for Reddit, Inc. (as of Nov 5, 2026): return on equity 32.0%. They feed the Quality Score of 77/100, which measures business quality independently of the share price.
How far is RDDT from its 52-week high?
Reddit, Inc. trades at $93.81, about 64% below its 52-week high of $258.93 and 3% above the low of $90.97 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $112.08 is for.
Which stocks are comparable to Reddit, Inc.?
From the same area (Communication Services) we also value Alphabet Inc, Meta Platforms, Inc, Tencent Holdings, Spotify Technology S.A, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Reddit, Inc. stock attractive at the current price?
The data as of Nov 5, 2026: price $93.81, calculated fair value $112.08 (+19%), Quality Score 77/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RDDT calculated?
We run Reddit, Inc. through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $112.08, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Reddit, Inc. currently trades 16% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Reddit, Inc. (RDDT)?
The closing price on Nov 5, 2026 was $93.81. Our model-based fair value is $112.08, about +19% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Reddit, Inc. right now?
The model range is unusually wide ($64.79 to $187.78). The outcome hinges heavily on assumptions, so read the point estimate with caution. The price sits in the lower half of our model range, the side with the larger margin of safety. Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.
Key figures of Reddit, Inc.
How large is the market capitalisation of Reddit, Inc. (RDDT)?
The market capitalisation of Reddit, Inc. is $19.0B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Reddit, Inc. (RDDT)?
The price-to-sales ratio of Reddit, Inc. is 6.14 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Reddit, Inc. (RDDT)?
Earnings per share at Reddit, Inc. are $4.86 (price ÷ EPS = P/E 18.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Reddit, Inc. (RDDT)?
The net margin of Reddit, Inc. is 32.1% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Reddit, Inc. (RDDT)?
The return on equity (ROE) of Reddit, Inc. is 32.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Reddit, Inc. (RDDT)?
On an EBIT basis the return on assets of Reddit, Inc. is −7.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Reddit, Inc. (RDDT)?
The operating margin of Reddit, Inc. is 29.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Reddit, Inc. (RDDT)?
Revenue at Reddit, Inc. is growing +53.0% versus a year earlier (3y avg +48.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Reddit, Inc. (RDDT)?
Earnings per share at Reddit, Inc. are growing +74.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Reddit, Inc. (RDDT) hold?
Reddit, Inc. holds more cash than debt, $930M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Some data
Nov 5, 2026