Reddit, Inc (RDDT) Fair Value & Analysis
Communication Services · US · Market cap $38.6B
Reddit, Inc
RDDT · US
Fair value as of: Jul 13, 2026
From 24 valuation models · updated 23 days ago
Share price −17.8% over the past month.
A solid business, but screening 82% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case ($34.93). The favourable scenario is already priced in.
- Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder.
Price vs Fair Value (2 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 13, 2026.
How to read this chart
29‑month range $34.00 – $270.71 · fair‑value band $22.29 – $34.93 · the $159.97 price screens above the $28.60 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 13, 2026.
Analysis
Reddit, Inc (RDDT) currently trades at $159.97, while our model-based Fair Value estimate is $28.60, implying the stock looks roughly 82.1% overvalued today. We read business quality at 57/100 (solid quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
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 Jul 13, 2026
Our scenario range runs from $22.29 (bear case) to $34.93 (bull case); at $159.97, the current price sits above that range. The share trades about 43% below its 52-week high and 44% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 2% fair-value upside, at -82%, RDDT screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.
All 24 models by family
Widest divergence: Growth Earnings ($168.28) versus Asset-Based ($13.82). Highest evidence: Growth DCF (72).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 72 · Market factors (momentum, volatility) 29
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.
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 82% overvalued. Compare with Alphabet Inc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Roblox and Reddit Stocks Just Both Crashed More Than 20%, but Only One Is a Buy
- Reddit Stock Tumbles as CEO Says Google Search Referrals Were 'Choppy,' Pushes Users to Its App
- Google traffic wobble sends major signal for sinking Reddit stock
- Reddit CEO Declares ‘People Don’t Want AI Summaries—They Want Reddit’
Peer Group
Internet Content & Information · 156 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
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.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Internet Content & Information stocks, each showing price versus our Fair Value estimate (as of Jul 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Alphabet Inc GOOGL | $354.46 | $145.14 | -59% |
| Meta Platforms, Inc META | $669.21 | $534.91 | -20% |
| Tencent Holdings 0700 | HK$460.20 | HK$467.50 | +2% |
| Spotify Technology S.A SPOT | $485.38 | $209.56 | -57% |
| Baidu, Inc BIDU | $113.30 | $451.51 | +299% |
| Kuaishou Technology, an investment holding company, 1024 | HK$44.70 | HK$101.03 | +126% |
| NAVER Corporation 035420 | 191,300 KRW | 231,585 KRW | +21% |
| Tencent Music Entertainment Group 1698 | HK$34.74 | HK$65.78 | +89% |
| Pinterest, Inc PINS | $22.52 | $14.71 | -35% |
| Kakao Corp 035720 | 35,900 KRW | 24,536 KRW | -32% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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