AppLovin Corporation

NasdaqGS:APP Stock Report

Market Cap: US$28.8b

AppLovin Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: APP ($86.31) is trading below our estimate of fair value ($221.33)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

APP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue8.1x
Enterprise Value/EBITDA19.3x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

How does APP's PE Ratio compare to its peers?

The above table shows the PE ratio for APP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average86x
TYL Tyler Technologies
120.9x18.8%US$25.1b
ANSS ANSYS
54.7x16.1%US$27.1b
SPLK Splunk
100.3x26.4%US$26.4b
PTC PTC
68.2x23.9%US$20.2b
APP AppLovin
35x23.4%US$28.8b

Price-To-Earnings vs Peers: APP is good value based on its Price-To-Earnings Ratio (35x) compared to the peer average (86x).

Price to Earnings Ratio vs Industry

How does APP's PE Ratio compare vs other companies in the US Software Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.7%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.7%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: APP is good value based on its Price-To-Earnings Ratio (35x) compared to the US Software industry average (35.7x).

Price to Earnings Ratio vs Fair Ratio

What is APP'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.

APP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35x
Fair PE Ratio47.1x

Price-To-Earnings vs Fair Ratio: APP is good value based on its Price-To-Earnings Ratio (35x) compared to the estimated Fair Price-To-Earnings Ratio (47.1x).

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 APP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$86.31
US$95.64
+10.8%
16.2%US$115.00US$57.00n/a18
Sep ’25US$92.87
US$95.47
+2.8%
16.1%US$115.00US$57.00n/a18
Aug ’25US$75.09
US$92.16
+22.7%
19.6%US$115.00US$48.00n/a18
Jul ’25US$84.82
US$90.58
+6.8%
19.4%US$115.00US$48.00n/a17
Jun ’25US$81.48
US$90.58
+11.2%
19.4%US$115.00US$48.00n/a17
May ’25US$69.74
US$72.83
+4.4%
18.5%US$88.00US$38.00n/a18
Apr ’25US$69.14
US$65.58
-5.1%
16.6%US$88.00US$38.00n/a17
Mar ’25US$62.26
US$65.05
+4.5%
16.2%US$88.00US$38.00n/a17
Feb ’25US$40.96
US$50.42
+23.1%
18.7%US$60.00US$28.00n/a17
Jan ’25US$39.85
US$50.25
+26.1%
18.6%US$60.00US$28.00n/a17
Dec ’24US$38.25
US$50.59
+32.3%
18.7%US$60.00US$28.00n/a17
Nov ’24US$36.70
US$44.12
+20.2%
18.5%US$57.00US$22.00n/a18
Oct ’24US$39.96
US$42.78
+7.1%
21.1%US$57.00US$20.00n/a18
Sep ’24US$43.19
US$42.37
-1.9%
20.7%US$57.00US$20.00US$92.8719
Aug ’24US$31.43
US$26.84
-14.6%
29.3%US$49.00US$14.00US$75.0919
Jul ’24US$25.73
US$25.41
-1.2%
29.2%US$49.00US$14.00US$84.8218
Jun ’24US$24.83
US$24.84
+0.06%
30.5%US$49.00US$14.00US$81.4818
May ’24US$16.87
US$20.04
+18.8%
40.5%US$46.00US$9.00US$69.7418
Apr ’24US$15.75
US$19.92
+26.5%
41.0%US$46.00US$9.00US$69.1418
Mar ’24US$13.38
US$20.75
+55.1%
40.2%US$46.00US$9.00US$62.2618
Feb ’24US$13.36
US$23.82
+78.3%
56.9%US$59.00US$7.00US$40.9619
Jan ’24US$10.53
US$27.00
+156.4%
47.4%US$59.00US$11.00US$39.8518
Dec ’23US$14.29
US$27.61
+93.2%
45.2%US$59.00US$11.00US$38.2518
Nov ’23US$17.12
US$45.06
+163.2%
34.0%US$80.00US$26.00US$36.7016
Oct ’23US$19.49
US$52.40
+168.9%
24.5%US$80.00US$30.00US$39.9615
Sep ’23US$25.05
US$55.07
+119.8%
22.6%US$80.00US$30.00US$43.1914

Analyst Forecast: Target price is less than 20% higher than the current share price.

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