Market Pulse59Neutral

Snap Inc.Opportunity Rank #53(SNAP) Intrinsic Value & DCF Analysis (2026)

Current Price

$5.99

Last updated: May 08, 2026

Price vs Intrinsic Value

$5.99
Price
$18.46
Intrinsic Value
Undervalued by 208%MOS: $14.77

Fundamental Score

73/100
Bullish

Weighted across 6 signals

Narrative Score

64/100
Improving

No change vs previous

Trend Score

62/100
Constructive

As of 2026-05-08

The intrinsic value of Snap Inc. (SNAP) is estimated at $18.46 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $5.99, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes an 11.35% long-term growth rate and a 9.00% discount rate (calculated: 8.84%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Snap Inc. (SNAP) is estimated at $18.46 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $5.99, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes an 11.35% long-term growth rate and a 9.00% discount rate (calculated: 8.84%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$18.46
▲ 208.44% upside
20% margin of safety: $14.77
Years: 10Growth Rate: 11.35%
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Capital Efficiency

Average Quarterly ROIC
-2.12%
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

73/100
BullishWeighted across 6 signals
DCF Discount
208.4% discount to price
100
FCF Yield
10.4% trailing FCF yield
100
ROIC vs WACC
ROIC -2.1% vs WACC 10.0% (-0.2x)
0
Net Debt / FCF
Net cash position
100
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

64/100
Improving
Vs 6-Month Baseline:High (91st pct)Weighted across 6 recent drivers
Trend: Improving upConfidence: 100%Updated: 15h ago
Sources: 156 (141 News · 15 Analyst)
Drivers(last 30 days)
106 news sentiment+1.9
Downgrade headlines-0.6
5 legal risk-0.2
2 upgrade headlines+0.2
7 layoffs-0.1
Margin pressure+0.1

Trend Details

62/100
ConstructiveAs of 2026-05-08311 daily bars used
6M Relative Strength vs SPY-25.6%
3M Relative Strength vs SPY+9.7%
Price vs 50 EMA+8.2%
Price vs 21 EMA76 · +4.8%
Price vs 50 EMA83 · +8.2%
21 EMA vs 50 EMA74 · +3.2%
3M RS vs SPY83 · +9.7%
6M RS vs SPY6 · -25.6%
Distance from 52W High17 · -41.3%

Investment Coach

Updated 14h ago
BUYConfidence: 65%
Thesis
Snap Inc. is significantly undervalued with an estimated fair value 221.5% above its current price, supported by a strong fundamental score of 73 and a healthy free cash flow yield of 10.4%. The company's improving narrative and robust free cash flow growth further bolster its bullish outlook despite trailing returns relative to its cost of capital.
Key Risk
The key risk is Snap's negative return on invested capital relative to its weighted average cost of capital, indicating potential challenges in generating sufficient returns on its investments.
Signals To Watch
  • Valuation discount remaining above 10%
  • Improvement in ROIC versus WACC spread
  • Meaningful shifts in narrative trend and 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. 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.