Stock Analysis
Reddit, Inc.RDDT
P/E 34.49×· 3Y range 31.06–247.75×· bottom 11% of history
Sector: Technology · Industry: Services-Computer Processing & Data Preparation
AnalystsBuy38 analystsP/E 34.5× sits at the 11th percentile of its 2.5708418891170433-year history.
Cash covers 13353% of debt · Q2 2026.
PMP Verdict
Strong business, attractive price
Strengths
- Profitability100
- Financial Health100
Risks
- Growth45
High-quality business at an attractive price.
Market context
-2.0% today· Z 0.9σ
Bull Case
- ✓Piotroski F-Score 7/9 — high earnings quality
- ✓Altman Z 55.4 — safe-zone balance sheet
- ✓ROE 26.5% — efficient capital deployment
- ✓Revenue CAGR 46.0% — durable top-line growth
- ✓P/E 34.5× at bottom 11% of 3-year history
What's happening with RDDT
Profile
Strong profitability and financial health; moat, growth and valuation lag behind.
How is each axis scored?
- Valuation47/100 · Weak
- P/E vs own history (11th pct)25/25
- FCF yield (3.4%)12/25
- P/S (10.7x)5/25
- EV/EBIT (34.5x)5/25
- Growth45/100 · Weak
- Revenue CAGR (46.0%)25/25
- Net income CAGR (n/a)0/25
- EPS CAGR 5Y (n/a)0/25
- Fwd implied growth (18.4%)20/25
- Profitability100/100 · Strong
- ROIC (119.2%)25/25
- ROE (26.5%)25/25
- Net margin (31.3%)25/25
- Operating margin (28.2%)25/25
- Financial Health100/100 · Strong
- Altman Z (55.44)25/25
- Current ratio (10.49)25/25
- Interest coverage (no interest expense)25/25
- Net cash / debt (Net cash)25/25
- Quality59/100 · Moderate
- Piotroski F (7/9)22/25
- Beneish M (-2.19)12/25
- FCF conversion (117%)25/25
- Margin stability (σ 58.9%)0/25
- Moat30/100 · Weak
- ROIC >12% years (1/5 yrs)0/25
- Median gross margin (86.2%)25/25
- FCF-positive years (2/5 yrs)5/25
- Worst-year net margin (worst -37.2%)0/25
Risk Flags
- ⚠SBC 12.2% of revenue — real dilution cost
- ⚠4 loss-making years in recent history
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 ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
47D+P/E (TTM)34.3xC
Grade C: ExpensivePrice / TTM EPS (own statements) — vs own 3Y history: 31.1x–247.7x · 11th pct
P/FCF30.1xC
Grade C: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield3.4%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 3Y history: 0.3%–3.8% · 94th pct
P/S (TTM)10.75xD
Grade D: ExpensivePrice / TTM Revenue (own statements) — vs own 3Y history: 9.7x–42.7x · 6th pct
EV/EBIT34.5xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 3Y history: 30.9x–55.6x · 37th pct
EV/Sales10.5xD
Grade D: Very expensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E28.9xC
Grade C: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio9.09xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio0.14A
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
100A+ROIC119.2%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE26.5%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 Margin31.3%A
Grade A: HighNet Income / Revenue
Operating Margin28.2%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin91.4%A
Grade A: PremiumGross Profit / Revenue
FCF Margin36.7%A
Grade A: HighFCF / Revenue
True FCF Margin24.5%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
45D+Revenue CAGR46.0%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 Growth18.4%C
Grade C: MedAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)—
Share count change over 5Y
SBC / Net Income38.8%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue12.2%D
Grade D: HighTTM stock-based comp / TTM Revenue
Financial Health
100A+Altman Z-Score55.44A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio10.49xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio10.17xA
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/EBITNet CashA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.01xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt133.53xA
Grade A: CoveredCash covers how much of total debt. >1 = could repay all debt from cash
Quality
59CPiotroski F-Score7/9A
Grade A: StrongFinancial strength 0–9. >7 Strong
Beneish M-Score-2.19C
Grade C: Gray zoneEarnings manipulation risk. < -2.22 Safe
FCF Conversion116.9%A
Grade A: StrongFCF / Net Income
Margin Stability58.9%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 Turnover0.84xC
Grade C: AverageRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Huffman Steve Ladd Filed | Huffman Steve Ladd | Option exercise | -17308 | |
Huffman Steve Ladd Filed | Huffman Steve Ladd | SellOpen market sale | -500 | |
Huffman Steve Ladd Filed | Huffman Steve Ladd | SellOpen market sale | -700 | |
Huffman Steve Ladd Filed | Huffman Steve Ladd | SellOpen market sale | -1700 | |
Huffman Steve Ladd Filed | Huffman Steve Ladd | SellOpen market sale | -1800 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Huffman Steve Ladd Filed | Huffman Steve Ladd | SellOpen market sale | -1200 | |
Huffman Steve Ladd Filed | Huffman Steve Ladd | SellOpen market sale | -2500 | |
Huffman Steve Ladd Filed | Huffman Steve Ladd | SellOpen market sale | -4200 |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
30DROIC >12% Years1/5 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)86.2%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years2/5 yrsD
Grade D: WeakShare of completed fiscal years with positive free cash flow
Net Margin Floor-37.2%D
Grade D: WeakWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$4.53
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$14.49
Cash & short-term investments per share (Finnhub)
Book Value / Share$17.08
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$20.87M
Total debt obligations (short + long term)
Cash & Equiv.$2.79B
Cash and short-term investments
Net Debt$-2.77BA
Grade A: Net CashTotal Debt minus Cash. Negative = Net Cash position
Total Equity$3.29B
Shareholders' equity (book value)
Asset / Liability10.36xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$29.86B
Current Market Capitalization
Beta2.07D
Grade D: High volatilityPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
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 Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Reddit, Inc. (RDDT)
RDDT is down 2.02% at the last close. Reddit, Inc. meets 7 of 9 Piotroski F-Score criteria, placing its fundamental strength in the top tier of US-listed stocks. Altman Z-Score of 55.44 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Revenue has compounded at roughly 46% annually — a strong growth profile.
- Reddit, Inc. converts about 37% of revenue into free cash flow — strong cash generation.
- Company is effectively debt-free after netting cash.
- Reddit, Inc. posted a net loss in 4 of 5 available completed fiscal years (2021–2025).
- Return on equity of 26.5% 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 |
|---|---|---|---|---|
| Oct 15 | Regular | 158.61 | +6.74% | 2.42 |
| Oct 15 | After-hours | 157.55 | +6.02% | 2.17 |
| Oct 14 | After-hours | 146.82 | -5.45% | -2.10 |
| Oct 1 | Regular | 150.06 | +5.35% | 2.08 |
| Sep 21 | Regular | 160.04 | +6.09% | 4.06 |
Frequently Asked Questions about RDDT
What is the current Reddit, Inc. (RDDT) stock price?
RDDT is trading at $156.14 at the last market close, down 2.02% on the session. PreMarketPrice tracks RDDT pre-market, intraday and after-hours prices.
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 34.3 and our valuation score rates it 47/100 (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. As of the latest update, Reddit, Inc. is trading at $156.14, down 2.02% on the day with a market capitalization of $29.9 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 6 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.