Reddit Inc (RDDT) is overvalued and Snap Inc (SNAP) is overvalued.
Both trade above our estimate of their intrinsic value. RDDT is the closer of the two: -93%, against -200% for SNAP.
Values as of the 19 Oct 2026 close.
Discounting its cash flows at 13.6% (average of 3 methods) values the shares at $80.53; the price of $155.14 is 93% above that value, and 64% of that value comes from beyond year five.
Leak Score 54/100 on 7 of 12 signals
A 1.0x revenue multiple, discounted for its losses, values the shares at $2.09; the price of $6.27 is 200% above that value.
Leak Score 34/100 on 10 of 12 signals
| Metric | RDDT | SNAP |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $155.14 | $6.27 |
| Intrinsic value | $80.53 | $2.09 |
| Margin of safety | -93% | -200% |
| Leak Score | 54/100 (7/12) | 34/100 (10/12) |
| Market cap | $29.9B | $10.8B |
| Revenue growth, 5 years | 57.3% | 18.8% |
| Operating margin | 28.2% | -5.1% |
| Net margin | 31.4% | -4.9% |
| Return on equity | 30.7% | -15.6% |
| Debt to equity | 0.01 | 2.19 |
| P/E | 36.2x | — |
| Forward P/E | 21.8x | 42.6x |
| P/B | 9.1x | 5.6x |