Reddit, Inc.

BIT:1RDDT Stock Report

Market Cap: €24.2b

Reddit Valuation

Is 1RDDT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of 1RDDT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: 1RDDT (€123) is trading below our estimate of future cash flow value (€311.11)

Significantly Below Future Cash Flow Value: 1RDDT is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1RDDT?

Key metric: As 1RDDT is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1RDDT. This is calculated by dividing 1RDDT's market cap by their current earnings.
What is 1RDDT's PE Ratio?
PE Ratio53.1x
EarningsUS$529.72m
Market CapUS$28.10b

Price to Earnings Ratio vs Peers

How does 1RDDT's PE Ratio compare to its peers?

The above table shows the PE ratio for 1RDDT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average44.1x
A035420 NAVER
19.4x8.62%₩35.3t
1024 Kuaishou Technology
13.4x15.06%HK$262.2b
A035720 Kakao
106.4x30.88%₩24.7t
REA REA Group
37.2x13.32%AU$21.3b
1RDDT Reddit
52.6x27.92%€27.9b

Price-To-Earnings vs Peers: 1RDDT is expensive based on its Price-To-Earnings Ratio (52.6x) compared to the peer average (47.6x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does 1RDDT's PE Ratio compare vs other companies in the European Interactive Media and Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1RDDT 53.1xIndustry Avg. 18.2xNo. of Companies9PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1RDDT is expensive based on its Price-To-Earnings Ratio (52.6x) compared to the Global Interactive Media and Services industry average (18.2x).

Price to Earnings Ratio vs Fair Ratio

What is 1RDDT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1RDDT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio53.1x
Fair PE Ratio30.5x

Price-To-Earnings vs Fair Ratio: 1RDDT is expensive based on its Price-To-Earnings Ratio (52.6x) compared to the estimated Fair Price-To-Earnings Ratio (30.5x).

Analyst Price Targets

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

The above table shows the analyst 1RDDT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€123.00
€199.49
+62.19%
17.12%€256.62€106.93n/a30
Feb ’27€156.00
€212.58
+36.27%
16.67%€274.04€113.83n/a27
Jan ’27€200.00
€209.72
+4.86%
17.90%€276.71€97.91n/a25
Dec ’26€190.00
€207.34
+9.13%
17.81%€258.42€99.06n/a27
Nov ’26€191.00
€208.43
+9.13%
18.36%€260.25€95.43n/a26
Oct ’26€178.00
€187.91
+5.57%
22.32%€255.66€93.74n/a26
Sep ’26€189.00
€168.36
-10.92%
17.26%€200.53€93.86n/a26
Aug ’26€168.00
€167.41
-0.35%
19.36%€202.95€64.77n/a26
Jul ’26€126.00
€125.63
-0.30%
19.50%€186.78€63.68n/a27
Jun ’26€96.50
€132.34
+37.14%
21.21%€193.78€66.06n/a25
May ’26€99.06
€128.95
+30.17%
24.29%€196.63€66.43n/a24
Apr ’26€102.08
€175.45
+71.88%
18.43%€217.82€69.52n/a21
Mar ’26€153.48
€195.58
+27.43%
10.96%€238.98€143.39€123.0020
Feb ’26€196.86
€176.67
-10.25%
14.96%€221.03€100.91€156.0019
Jan ’26€160.84
€144.26
-10.31%
26.32%€201.26€81.46€200.0019
Dec ’25€134.68
€112.77
-16.27%
22.07%€166.74€66.70€190.0017
Nov ’25€99.00
€100.15
+1.16%
12.32%€110.74€64.60€191.0017
Oct ’25n/a
€60.47
0%
13.01%€75.26€44.80€178.0016
Sep ’25n/a
€61.39
0%
13.20%€76.96€45.81€189.0015
Aug ’25n/a
€61.32
0%
13.18%€77.57€46.18€168.0015
Jul ’25n/a
€57.18
0%
11.79%€69.85€41.91€126.0015
Jun ’25n/a
€55.30
0%
9.68%€64.38€41.39€96.5015
May ’25n/a
€46.32
0%
9.45%€51.78€37.66€99.0615
€194.99
Fair Value
36.9% undervalued intrinsic discount
30
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/03/03 19:35
End of Day Share Price 2026/03/03 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Reddit, Inc. is covered by 36 analysts. 31 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Colin SebastianBaird
Mark ShmulikBernstein
Justin PostBofA Global Research