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DCF Valuation
Base-case fair value
$172.56
Intrinsic $230.08 · 25% MOS
Current price: $174.96
Base-case summary
Our base-case DCF for Reddit, Inc. (RDDT) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 100.6% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $869M in trailing free cash flow, this produces an intrinsic value of $230.08 per share. A 25% safety margin gives a fair value of $172.56, suggesting the stock is currently 1% overvalued against the $174.96 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$869M
Cash & equivalents
$2.8B
Total debt
$27M
Shares outstanding
203M