Reddit, Inc. (RDDT) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Reddit, Inc. stock (RDDT) is currently trading at $139.63. Reddit, Inc. PE ratio is 52.15. Reddit, Inc. PS ratio (Price-to-Sales) is 11.81. Analyst consensus price target for RDDT is $232.05. WallStSmart rates RDDT as Buy.
- RDDT PE ratio analysis and historical PE chart
- RDDT PS ratio (Price-to-Sales) history and trend
- RDDT intrinsic value — DCF, Graham Number, EPV models
- RDDT stock price prediction 2025 2026 2027 2028 2029 2030
- RDDT fair value vs current price
- RDDT insider transactions and insider buying
- Is RDDT undervalued or overvalued?
- Reddit, Inc. financial analysis — revenue, earnings, cash flow
- RDDT Piotroski F-Score and Altman Z-Score
- RDDT analyst price target and Smart Rating
Reddit, Inc.
📊 No data available
Try selecting a different time range
RDDT Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Reddit, Inc. (RDDT)
RDDT trades 14% above its Graham fair value of $122.15, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Reddit, Inc. (RDDT) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, return on equity. Concerns around price/sales and price/book. Overall metrics suggest strong investment potential with favorable risk/reward.
Reddit, Inc. (RDDT) Key Strengths (8)
Keeps $32 of every $100 in revenue after operating costs
Revenue surging 69.70% year-over-year
Earnings per share surging 247.40% year-over-year
Keeps $24 of every $100 in revenue as net profit
98.75% of shares held by major funds and institutions
Large-cap company with substantial market presence
Every $100 of equity generates $21 in profit
Good growth relative to its price
Supporting Valuation Data
Reddit, Inc. (RDDT) Areas to Watch (2)
Very expensive at 11.8x annual revenue
Very expensive at 8.9x book value
Supporting Valuation Data
Reddit, Inc. (RDDT) Detailed Analysis Report
Overall Assessment
This company scores 76/100 in our Smart Analysis, earning a B+ grade. Out of 10 metrics analyzed, 8 register as strengths (avg 9.5/10) while 2 fall into concern territory (avg 2.0/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Revenue Growth, EPS Growth. Valuation metrics including PEG Ratio (1.09) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 20.90%, Operating Margin at 32.00%, Profit Margin at 24.00%. Growth metrics are encouraging with Revenue Growth at 69.70%, EPS Growth at 247.40%.
The Bear Case
The primary concerns are Price/Sales, Price/Book. Some valuation metrics including Price/Sales (11.81), Price/Book (8.88) suggest expensive pricing.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Price/Sales improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 20.90% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 69.70% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a moderate risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
The combination of Operating Margin and Revenue Growth makes a compelling case at current levels. The key risk is Price/Sales, but the overall fundamental picture is positive with a clear path to maintaining or improving the current B+ grade.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
RDDT Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
RDDT's Price-to-Sales ratio of 11.81x trades 27% below its historical average of 16.12x (23th percentile). The current valuation is 57% below its historical high of 27.67x set in Jan 2025, and 41% above its historical low of 8.4x in Apr 2024. Over the past 12 months, the PS ratio has compressed from ~14.9x as trailing revenue scaled faster than the stock price.
Compare RDDT with Competitors
Top INTERNET CONTENT & INFORMATION stocks by market cap
Compare any two stocks →WallStSmart Analysis Synopsis
Data-driven financial summary for Reddit, Inc. (RDDT) · COMMUNICATION SERVICES › INTERNET CONTENT & INFORMATION
The Big Picture
Reddit, Inc. is a strong growth company balancing expansion with improving profitability. Revenue reached 2.2B with 70% growth year-over-year. Profit margins are strong at 24.0%, reflecting pricing power and operational efficiency.
Key Findings
Revenue growing at 70% YoY, reaching 2.2B. This pace significantly outperforms most INTERNET CONTENT & INFORMATION peers.
ROE of 20.9% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
What to Watch Next
Growth sustainability: can Reddit, Inc. maintain 70%+ revenue growth, or will competition slow it down?
Valuation compression risk at a P/E of 52.1x. Any growth miss could trigger a sharp correction.
Volatility is elevated with a beta of 2.42, so expect amplified moves relative to the broader market.
Sector dynamics: monitor INTERNET CONTENT & INFORMATION industry trends, competitive moves, and regulatory changes that could impact Reddit, Inc..
Bottom Line
Reddit, Inc. offers an attractive blend of growth (70% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
Loading insider activity...
About Reddit, Inc.(RDDT)
NYSE
COMMUNICATION SERVICES
INTERNET CONTENT & INFORMATION
USA
Reddit, Inc. operates a website that organizes digital communities. The company is headquartered in San Francisco, California.