Snap Valuation

Is SNAP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SNAP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SNAP (ARS11850) is trading below our estimate of fair value (ARS19226.03)

Significantly Below Fair Value: SNAP is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for SNAP?

Key metric: As SNAP is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SNAP. This is calculated by dividing SNAP's market cap by their current revenue.
What is SNAP's PS Ratio?
PS Ratio3.5x
SalesUS$5.17b
Market CapUS$17.76b

Price to Sales Ratio vs Peers

How does SNAP's PS Ratio compare to its peers?

The above table shows the PS ratio for SNAP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average7.4x
1.6x5.8%JP¥3.0t
PINS Pinterest
5.7x13.1%US$19.8b
REA REA Group
19.4x7.0%AU$32.6b
2.8x8.7%₩28.6t
SNAP Snap
3.5x11.8%AR$17.8b

Price-To-Sales vs Peers: SNAP is good value based on its Price-To-Sales Ratio (3.5x) compared to the peer average (7.4x).


Price to Sales Ratio vs Industry

How does SNAP's PS Ratio compare vs other companies in the Global Interactive Media and Services Industry?

57 CompaniesPrice / SalesEstimated GrowthMarket Cap
SNAP 3.5xIndustry Avg. 1.6xNo. of Companies57PS0246810+
57 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SNAP is expensive based on its Price-To-Sales Ratio (3.5x) compared to the Global Interactive Media and Services industry average (1.6x).


Price to Sales Ratio vs Fair Ratio

What is SNAP's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SNAP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.5x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SNAP's Price-To-Sales Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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