Reddit, Inc. (RDDT)
Communication Services · NYQ · US
Fundamentals
Valuation and ratings
Reddit, Inc. trades at USD185.26, which is 26% above the USD136.29 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 89 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 57.4 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Reddit, Inc.
Reddit, Inc. operates a digital community in the United States and internationally. The company's platform enables user to engage in conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share laughs, and find belonging. It also organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. Reddit, Inc. was founded in 2005 and is headquartered in San Francisco, California.
RDDT passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
5 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Baillie Gifford, BAILLIE GIFFORD & CO$984.17M · 1.0% of book
- Philippe Laffont, COATUE MANAGEMENT LLC$375.66M · 1.3% of book
- Andreas Halvorsen, VIKING GLOBAL INVESTORS LP$343.58M · 1.0% of book
- Chase Coleman, TIGER GLOBAL MANAGEMENT LLC$336.63M · 1.5% of book
- Marshall Wace, MARSHALL WACE, LLP$335.85M · 0.3% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Reddit, Inc. (RDDT) undervalued?
Against our discounted cash flow estimate of USD136.29, RDDT at USD185.26 is 26% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own RDDT?
5 of the institutions we track reported a position in RDDT in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is RDDT's P/E ratio?
RDDT trades at 57.4 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for RDDT, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.