Market Pulse46Neutral

Snap Inc.Opportunity Rank #152(SNAP) Intrinsic Value & DCF Analysis (2026)

Current Price

$4.68

Last updated: Jul 13, 2026

Price vs Intrinsic Value

$4.68
Price
$17.47
Intrinsic Value
Undervalued by 273%MOS: $13.98

Fundamental Score

72/100
Bullish

Weighted across 6 signals

Narrative Score

52/100
Weak

No change vs previous

Trend Score

17/100
Weak

As of 2026-07-10

The intrinsic value of Snap Inc. (SNAP) is estimated at $17.47 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $4.68, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 14.38% long-term growth rate and a 10.00% discount rate (calculated: 7.22%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Snap Inc. (SNAP) is estimated at $17.47 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $4.68, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 14.38% long-term growth rate and a 10.00% discount rate (calculated: 7.22%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$17.47
▲ 273.29% upside
20% margin of safety: $13.98
Years: 10Growth Rate: 14.38%
Want to create your own valuation? Create a free account.

Capital Efficiency

Average Quarterly ROIC
-1.94%
Cost of Capital (estimated)10%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

72/100
BullishWeighted across 6 signals
DCF Discount
273.3% discount to price
100
FCF Yield
13.3% trailing FCF yield
100
ROIC vs WACC
ROIC -1.9% vs WACC 10.0% (-0.2x)
0
Net Debt / FCF
0.7x net debt to FCF
86
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
310.4% 5Y FCF CAGR (adjusted)
100
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC.

Narrative Details

52/100
Weak
Vs 6-Month Baseline:Below Avg (25th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 85%Updated: 2h ago
Sources: 61 (48 News · 13 Analyst)
Drivers(last 30 days)
42 news sentiment+0.1
3 regulatory scrutiny+0.1
Legal risk-0.0
Upgrade headlines+0.0
Layoffs-0.0
Analyst downgrades-0.0

Trend Details

17/100
WeakAs of 2026-07-10309 daily bars used
Distance from 52-Week High-54.8%
6M Relative Strength vs SPY-55.2%
3M Relative Strength vs SPY-16.5%
Price vs 21 EMA30 · -3.2%
Price vs 50 EMA13 · -9.0%
21 EMA vs 50 EMA11 · -5.9%
3M RS vs SPY6 · -16.5%
6M RS vs SPY0 · -55.2%
Distance from 52W High0 · -54.8%

Investment Coach

Updating... 32d ago
BUYConfidence: 62%
Thesis
Snap Inc. is significantly undervalued with an estimated fair value 238% above its current price, supported by a strong fundamental score of 72 and a healthy free cash flow yield of 11.6%. Despite trailing returns relative to its cost of capital, the company's improving narrative and robust free cash flow growth underpin a bullish investment case.
Key Risk
Snap's return on invested capital remains well below its weighted average cost of capital, posing a risk to sustained value creation.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC versus WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 37.50%5 Year CAGR: 23.78%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015
$1,054$875$608$458$314$363-$110-$268-$570-$650-$544-$278

How Intrinziq Estimates Fair Value

Intrinziq estimates Snap 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.

Snap Inc.Communication Services

Snap Inc. is a global technology company focused on cameras, serving users across North America, Europe, and other international regions. Its primary product is Snapchat, a powerful camera application that facilitates visual communication through short videos and images. This app boasts several key features, including its Camera function, Communication tools, Snap Map, Stories, and Spotlight. In addition to its software, Snap Inc. develops Spectacles, smart glasses designed to integrate with Snapchat for capturing media from a first-person perspective. The company also offers a comprehensive suite of advertising products, encompassing augmented reality (AR) ads and various Snap ad formats like single image/video, story, collection, and dynamic ads, as well as commercials. Founded in 2010, the company initially operated as Snapchat, Inc. before adopting the name Snap Inc. in September 2016. Its headquarters are located in Santa Monica, California.