Market Pulse44Neutral

Snap Inc.Opportunity Rank #129(SNAP) Intrinsic Value & DCF Analysis (2026)

Current Price

$4.65

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$4.65
Price
$17.47
Intrinsic Value
Undervalued by 276%MOS: $13.98

Fundamental Score

72/100
Bullish

Weighted across 6 signals

Narrative Score

51/100
Weak

-3 vs previous

Trend Score

14/100
Weak

As of 2026-06-22

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 $4.65, 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: 7.15%), 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 $4.65, 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: 7.15%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$17.47
▲ 276.10% upside
20% margin of safety: $13.98
Years: 10Growth Rate: 14.38%
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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
276.1% discount to price
100
FCF Yield
13.4% 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

51/100
Weak
-3 vs previous · +1 new driversVs 6-Month Baseline:Low (19th pct)Weighted across 6 recent drivers
Trend: Deteriorating downConfidence: 87%Updated: 3m ago
Sources: 103 (90 News · 13 Analyst)
Drivers(last 30 days)
2 upgrade headlines+0.1
77 news sentiment+0.0
5 regulatory scrutiny+0.0
Layoffs-0.0
Downgrade headlines-0.0
Analyst downgrades-0.0

Trend Details

14/100
WeakAs of 2026-06-22308 daily bars used
Distance from 52-Week High-55.3%
6M Relative Strength vs SPY-49.1%
Price vs 21 EMA-13.8%
Price vs 21 EMA2 · -13.8%
Price vs 50 EMA3 · -16.0%
21 EMA vs 50 EMA29 · -2.6%
3M RS vs SPY13 · -11.4%
6M RS vs SPY0 · -49.1%
Distance from 52W High0 · -55.3%

Investment Coach

Updating... 12d 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.