Reddit, Inc. (RDDT) Valuation
Historical valuation analysis based on 500 data points (2024-09-27 to 2026-09-25)
Reddit is a social media platform where users can engage in conversations, explore, and create communities centered around their interests. Founded in 2005 by Steve Huffman and Alexis Ohanian, Redd...
Reddit, Inc. (RDDT) currently trades at a P/E ratio of 42.89 (historical range: 38.54–247.75, median: 85.36), placing it at the 6th percentile — cheap relative to its history, P/S ratio of 12.27 (range: 10.18–41.78, 8th percentile — cheap relative to its history).
Over the historical period (2024-09-27 to 2026-09-25), Reddit, Inc.'s P/E ratio has contracted by 59% over the observed period (from an average of 193.8 to 78.8).
Reddit, Inc. trades well below its historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Min | Median | Max | Percentile | Assessment |
|---|---|---|---|---|---|---|
| P/E Ratio | 42.89 | 38.54 | 85.36 | 247.75 | 6th | cheap relative to its history |
| P/S Ratio | 12.27 | 10.18 | 16.84 | 41.78 | 8th | cheap relative to its history |
| FCF Yield | 0.03 | 0.00 | 0.01 | 0.03 | 96th | cheap relative to its history |
Reddit, Inc. (RDDT) Valuation & P/E History
Reddit, Inc. (RDDT) is a US-listed stock operating in the Technology sector, specifically the Services-Computer Processing & Data Preparation industry currently trading at $150.40 with a market capitalization of $28.9 billion. This page provides historical valuation analysis for RDDT based on 500 data points covering 2024-09-27 to 2026-09-25. The P/E ratio of 42.89 is below the historical median of 85.36, placing RDDT at the 6th percentile of its valuation range. The P/S ratio of 12.27 compares to a median of 16.84.
RDDT Valuation Metrics & Historical Range
The valuation table above shows Reddit, Inc.'s current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether RDDT is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests RDDT is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Reddit, Inc..
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is RDDT Overvalued or Undervalued?
Reddit, Inc. trades well below its historical valuation range across most metrics. The overall valuation percentile of 7 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive RDDT is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full RDDT analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.RDDT trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.