Pinterest, Inc. (PINS) DCF Valuation
Transparent DCF models put Pinterest, Inc. (PINS)'s fair value in a range of $2.70 – $21.36 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $21.92 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $21.92, the market is pricing in roughly +5.4%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +39.3%. The price assumes a slowdown from its track record — a potential value signal if growth holds.
Current Price
$21.92
Fair-Value Range
$2.70 – $21.36
Market-Implied Growth
+5.4%/yr
vs +39.3% 5Y actual
PINS DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $809.2M · 0.66B shares · net cash $927.9M
Estimated Fair Value
$21.36
-2.6% vs $21.92
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $21.92; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $26.20 | $27.47 | $28.98 | $30.78 | $32.99 |
| 9.0% | $22.70 | $23.57 | $24.58 | $25.75 | $27.13 |
| 10.0% | $20.04 | $20.66 | $21.36 | $22.16 | $23.08 |
| 11.0% | $17.94 | $18.40 | $18.90 | $19.47 | $20.12 |
| 12.0% | $16.25 | $16.59 | $16.97 | $17.39 | $17.86 |
About Pinterest, Inc.
Pinterest, Inc. functions globally as a platform dedicated to visual discovery. Its core purpose is to empower individuals to unearth inspiration for various aspects of their lives, encompassing everything from culinary creations and personal style to home decor and do-it-yourself ventures. The platform facilitates this through diverse content formats, including video, product, and concept-based "Pins." Leveraging sophisticated visual machine learning, Pinterest provides personalized recommendations tailored to each user's unique preferences and interests. Established in 2008, the company was initially known as Cold Brew Labs Inc. before officially changing its name to Pinterest, Inc. in April 2012. Its corporate headquarters are located in San Francisco, California.
- Sector
- Communication Services
- Industry
- Internet Content & Information
- CEO
- William J. Ready