Market Pulse50Neutral

Snap Inc.Opportunity Rank #120(SNAP) Intrinsic Value & DCF Analysis (2026)

Current Price

$4.51

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$4.51
Price
$13.95
Intrinsic Value
Undervalued by 209%MOS: $11.16

Fundamental Score

63/100
Neutral

Weighted across 6 signals

Narrative Score

55/100
Improving

No change vs previous

The intrinsic value of Snap Inc. (SNAP) is estimated at $13.95 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $4.51, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 14.43% long-term growth rate and a 10.00% discount rate (calculated: 6.39%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Snap Inc. (SNAP) is estimated at $13.95 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $4.51, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 14.43% long-term growth rate and a 10.00% discount rate (calculated: 6.39%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$13.95
▲ 209.31% upside
20% margin of safety: $11.16
Years: 10Growth Rate: 14.43%
Want to create your own valuation? Create a free account.

Capital Efficiency

Average Quarterly ROIC
-2.37%
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

63/100
NeutralWeighted across 6 signals
DCF Discount
209.3% discount to price
100
FCF Yield
11.5% trailing FCF yield
100
ROIC vs WACC
ROIC -2.4% vs WACC 10.0% (-0.2x)
0
Net Debt / FCF
1.3x net debt to FCF
50
Buybacks
Share count growing
30
FCF CAGR (5Y)
297.0% 5Y FCF CAGR (adjusted)
100
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Buybacks.

Narrative Details

55/100
Improving
Vs 6-Month Baseline:Above Avg (61st pct)Weighted across 6 recent drivers
Trend: StableConfidence: 85%Updated: 56m ago
Sources: 104 (85 News · 19 Analyst)
Drivers(last 30 days)
73 news sentiment+0.3
5 regulatory scrutiny+0.2
4 legal risk-0.1
Earnings beat+0.0
2 analyst upgrades+0.0
Upgrade headlines+0.0

Investment Coach

Updated 15h ago
BUYConfidence: 54%
Thesis
Snap Inc. is significantly undervalued with an estimated fair value 221.7% above its current price, supported by healthy free cash flow yield and constructive fundamentals. Despite trailing returns relative to its cost of capital, the improving narrative and strong free cash flow growth suggest potential for substantial upside.
Key Risk
The primary risk is Snap's negative return on invested capital relative to its weighted average cost of capital, which may hinder sustained value creation.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs 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: 38.79%5 Year CAGR: 19.26%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015
$875$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. operates as a camera company in North America, Europe, and internationally. The company offers Snapchat, a camera application with various functionalities, such as Camera, Communication, Snap Map, Stories, and Spotlight that enable people to communicate visually through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective; and advertising products, including AR ads and Snap ads comprises a single image or video ads, story ads, collection ads, dynamic ads, and commercials. 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.