Market Pulse50Neutral

Reddit, Inc.Opportunity Rank #191(RDDT) Intrinsic Value & DCF Analysis (2026)

Current Price

$140.95

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$140.95
Price
$78.93
Intrinsic Value
Overvalued by 44%MOS: $63.14

Fundamental Score

60/100
Neutral

Weighted across 6 signals

Narrative Score

58/100
Improving

No change vs previous

The intrinsic value of Reddit, Inc. (RDDT) is estimated at $78.93 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $140.95, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 12.95% long-term growth rate and a 12.16% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Reddit, Inc. (RDDT) is estimated at $78.93 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $140.95, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 12.95% long-term growth rate and a 12.16% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$78.93
▼ -44.00% downside
20% margin of safety: $63.14
Years: 10Growth Rate: 12.95%
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Capital Efficiency

Average Quarterly ROIC
28.82%
Cost of Capital (estimated)7%
Value StatusCreating Value

The company is earning a higher return on invested capital than it costs to raise that capital — a sign of strong, efficient value creation.

Complete historical ROIC is available with
.

Fundamental Details

60/100
NeutralWeighted across 6 signals
DCF Discount
44.0% premium to price
0
FCF Yield
2.6% trailing FCF yield
15
ROIC vs WACC
ROIC 28.8% vs WACC 7.0% (4.1x)
100
Net Debt / FCF
Net cash position
100
Buybacks
Share count growing
30
FCF CAGR (5Y)
276.6% 5Y FCF CAGR (adjusted)
100
Strengths: ROIC vs WACC, Net Debt / FCF. Concerns: DCF Discount, FCF Yield.

Narrative Details

58/100
Improving
Vs 6-Month Baseline:Low (8th pct)Weighted across 6 recent drivers
Trend: Deteriorating downConfidence: 91%Updated: 1h ago
Sources: 137 (123 News · 14 Analyst)
Drivers(last 30 days)
103 news sentiment+0.7
2 upgrade headlines+0.1
11 regulatory scrutiny+0.0
Downgrade headlines-0.0
2 legal risk-0.0
2 earnings beat+0.0

Investment Coach

Updated 15h ago
WATCHConfidence: 43%
Thesis
Reddit, Inc. is currently trading at a significant premium to its estimated fair value despite strong fundamentals, including a high ROIC well above its cost of capital and a solid balance sheet with net cash. The company exhibits constructive fundamentals with a neutral overall score but faces a deteriorating narrative trend.
Key Risk
The primary risk is that the deteriorating narrative trend may signal underlying issues that could erode the company's valuation and fundamentals over time.
Signals To Watch
  • Price moves to at least a mid-teens discount to fair value.
  • ROIC remains consistently above the cost of capital in upcoming quarters.
  • Monitor narrative trend for meaningful shifts in score direction.
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Historical Growth Rates
Free Cash Flow- - -Trend CAGR (Adjusted): 236.60%5 Year CAGR (Adjusted): 283.22%

Free Cash Flow (in millions)

TTM202520242023202220212020
$698$698$228-$65-$88-$128-$59

How Intrinziq Estimates Fair Value

Intrinziq estimates Reddit, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Reddit, Inc.Communication Services

Reddit, Inc. operates a website that organizes digital communities. It 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. The company was founded in 2005 and is headquartered in San Francisco, California. Reddit, Inc. operates as a subsidiary of Advance Publications, Inc.