Reddit Inc (RDDT) is overvalued and Spotify Technology SA (SPOT) is overvalued.
Both trade above our estimate of their intrinsic value. SPOT is the closer of the two: -71%, against -83% for RDDT.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 13.6% (average of 3 methods) values the shares at $84.92; the price of $155.67 is 83% above that value, and 64% of that value comes from beyond year five.
Leak Score 59/100 on 5 of 12 signals
Discounting its cash flows at 12.1% (average of 3 methods) values the shares at $292.81; the price of $501.30 is 71% above that value, and 67% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | RDDT | SPOT |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $155.67 | $501.30 |
| Intrinsic value | $84.92 | $292.81 |
| Margin of safety | -83% | -71% |
| Leak Score | 59/100 (5/12) | 59/100 (3/12) |
| Market cap | $30.0B | $103.2B |
| Revenue growth, 5 years | 57.3% | 16.6% |
| Operating margin | 28.2% | 14.6% |
| Net margin | 31.4% | 18.4% |
| Return on equity | 30.7% | 44.9% |
| Debt to equity | 0.01 | 0.06 |
| P/E | 36.2x | 31.2x |
| Forward P/E | 21.9x | 28.5x |
| P/B | 9.1x | 10.8x |