Reddit, Inc. (RDDT) Stock Analysis
P/E 43.05×· 3Y range 38.54–247.75×· bottom 7% of history
Sector: Technology · Industry: Services-Computer Processing & Data Preparation
AnalystsBuy38 analystsStrengths
- ✓Altman Z 61.3 — safe-zone balance sheet
- ✓ROE 22.3% — efficient capital deployment
- ✓Revenue CAGR 69.4% — durable top-line growth
- ✓P/E 43.0× at bottom 7% of 3-year history
Risks
- ⚠SBC 13.2% of revenue — real dilution cost
What's happening with RDDT
Price History
5-Year Weekly Candlestick Chart
Profile
Strong financial health and profitability.
How is each axis scored?
- Valuation52/100 · Moderate
- P/E vs own history (7th pct)25/25
- FCF yield (3.0%)12/25
- P/S (11.7x)5/25
- EV/EBIT (n/a)10/25
- Growth50/100 · Moderate
- Revenue CAGR (69.4%)25/25
- Net income CAGR (n/a)0/25
- EPS CAGR 5Y (n/a)0/25
- Fwd implied growth (54.5%)25/25
- Profitability95/100 · Strong
- ROIC (119.9%)25/25
- ROE (22.3%)20/25
- Net margin (28.6%)25/25
- Operating margin (25.1%)25/25
- Financial Health100/100 · Strong
- Altman Z (61.26)25/25
- Current ratio (12.73)25/25
- Interest coverage (no interest expense)25/25
- Net cash / debt (Net cash)25/25
- Quality60/100 · Moderate
- Piotroski F (6/9)15/25
- Beneish M (-2.31)20/25
- FCF conversion (123%)25/25
- Margin stability (σ 84.3%)0/25
About Reddit, Inc.
Reddit is a social media platform where users can engage in conversations, explore, and create communities centered around their interests. Show more
Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit has evolved into a vast network of user-generated content organized into specialized forums known as "subreddits." The platform's unique community-driven model relies on volunteer moderators to manage content and maintain subreddit guidelines. Reddit generates revenue primarily through advertising and data licensing agreements.
Headquarters: SAN FRANCISCO, CA · Employees: 2,555 · Website ↗
Insider Transactions
Recent SEC Form 4 filings
- SellOption exercise · filed 2026-09-17-17308 sh2026-09-15
- SellOpen market sale · filed 2026-09-17-300 sh2026-09-15
- SellOpen market sale · filed 2026-09-17-1400 sh2026-09-15
- SellOpen market sale · filed 2026-09-17-1079 sh2026-09-15
- SellOpen market sale · filed 2026-09-17-6027 sh2026-09-15
+3 more recent filings
Key Metrics
Financial snapshot — pillar inputs plus per-share and market context
Valuation
52CP/E (TTM)43.0xD
Grade D: ExpensivePrice / TTM EPS (own statements) — vs own 3Y history: 38.5x–247.7x · 7th pct
P/FCF28.8xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield3.0%C
Grade C: LowTTM FCF / Market Cap — vs own 3Y history: 0.4%–3.2% · 99th pct
P/S (TTM)11.70xD
Grade D: ExpensivePrice / TTM Revenue (own statements) — vs own 3Y history: 10.2x–41.8x · 4th pct
EV/EBITDA34.8xD
Grade D: ExpensiveEnterprise value / EBITDA (Finnhub) — capital-structure neutral
EV/Sales10.0xD
Grade D: Very expensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E27.9xC
Grade C: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio9.10xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio0.13A
Grade A: CheapFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
95A+ROIC119.9%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE22.3%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA26.3%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin28.6%A
Grade A: HighNet Income / Revenue
Operating Margin25.1%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin91.4%A
Grade A: PremiumGross Profit / Revenue
FCF Margin35.1%A
Grade A: HighFCF / Revenue
True FCF Margin21.9%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Financial Health
100A+Altman Z-Score61.26A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio12.73xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio11.31xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage—
EBIT/Interest. >10 Strong
Debt RepaymentNet CashA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT—
Leverage. <2x Low, >4x High
Debt/Equity0.00xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt—
Cash covers how much of total debt. >1 = could repay all debt from cash
Growth
50CRevenue CAGR69.4%A
Grade A: HighCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR—
Compound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)—
Compound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth54.5%A
Grade A: HighImplied 1Y EPS growth from forward P/E vs our TTM EPS. Sparse — only where forward estimates exist
Dilution (5Y)—
Share count change over 5Y
SBC / Net Income46.1%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue13.2%D
Grade D: HighTTM stock-based comp / TTM Revenue
Quality
1/2 Loss Years60BPiotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.31A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion122.8%A
Grade A: StrongFCF / Net Income
Margin Stability84.3%D
Grade D: VolatileEBIT margin std deviation. Lower = stable
Capex / Revenue0.3%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.68xC
Grade C: AverageRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
More metrics — Per Share, Balance Sheet, MarketHide additional metrics
Per Share
EPS (TTM)$3.49
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$12.97
Cash & short-term investments per share (Finnhub)
Book Value / Share$15.34
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt—
Total debt obligations (short + long term)
Cash & Equiv.$2.77B
Cash and short-term investments
Net Debt—
Total Debt minus Cash. Negative = Net Cash position
Total Equity$3.18B
Shareholders' equity (book value)
Asset / Liability11.44xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$28.94B
Current Market Capitalization
Beta2.04D
Grade D: High volatilityPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
Takeaway
Company is effectively debt-free after netting cash. · Current P/E of 43.0x sits at the 7th percentile of its historical range.
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Mar 2026 · Ratio snapshot Sep 26, 2026
Key Insights: Reddit, Inc. (RDDT)
Piotroski F-Score of 6/9 indicates mixed fundamentals for Reddit, Inc.. Altman Z-Score of 61.26 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.31 suggests a low likelihood of earnings manipulation. Revenue has compounded at roughly 69% annually — a strong growth profile.
- Reddit, Inc. converts about 35% of revenue into free cash flow — strong cash generation.
- Company is effectively debt-free after netting cash.
- Reddit, Inc. posted a net loss in 1 of 2 available completed fiscal years (2024–2025).
- Return on equity of 22.3% is well above the market average.
See how RDDT ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all RDDT moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Sep 21 | Regular | 160.04 | +6.09% | 4.06 |
| Sep 21 | After-hours | 158.65 | +5.17% | 3.45 |
Frequently Asked Questions about RDDT
Is RDDT stock a buy right now?
PreMarketPrice's quantitative model rates Reddit, Inc.'s financial health at 100/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is RDDT stock overvalued?
Reddit, Inc. trades at a trailing P/E of 43.0 and our valuation score rates it 52/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Reddit, Inc. report earnings?
No confirmed earnings date is currently scheduled for RDDT. The Earnings section lists recent reports and updates as dates are announced.
What sector does Reddit, Inc. operate in?
Reddit, Inc. operates in the Technology sector, within the Services-Computer Processing & Data Preparation industry. The Related Stocks section lists sector peers for comparison.
What does Reddit, Inc. do?
Reddit is a social media platform where users can engage in conversations, explore, and create communities centered around their interests.
About Reddit, Inc. (RDDT) Stock
Reddit, Inc. (RDDT) is a US-listed stock operating in the Technology sector, specifically the Services-Computer Processing & Data Preparation industry. Real-time pricing data for Reddit, Inc. is available on this page with a market capitalization of $28.9 billion. The financial health score for RDDT is 100/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for RDDT stock.
RDDT Stock Analysis & Key Metrics
On PreMarketPrice, you can track Reddit, Inc. (RDDT) across multiple dimensions:
- Pre-market price & movement: Real-time RDDT stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for RDDT with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Reddit, Inc. across multiple reporting periods.
- Financial health score: A composite score of 100/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for RDDT.
- Sector peers: Compare RDDT against 10 other technology stocks on key financial metrics.
Is RDDT a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Reddit, Inc. (RDDT) as an investment. The financial health score of 100/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Reddit, Inc. (RDDT) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.