Reddit, Inc. (RDDT) DCF Valuation
A discounted-cash-flow model values Reddit, Inc. (RDDT) at about $20.15 (TGM base case). Today's price of $178.11 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 $178.11, the market is pricing in roughly +39.0%/yr free-cash-flow growth over the next decade (at a 10% required return).
Current Price
$178.11
Fair-Value Range
$20.15
Market-Implied Growth
+39.0%/yr
RDDT 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 $178.7M · 0.19B shares · net cash $953.6M
Estimated Fair Value
$20.15
-88.7% vs $178.11
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 $178.11; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $23.84 | $24.81 | $25.96 | $27.33 | $29.01 |
| 9.0% | $21.18 | $21.84 | $22.61 | $23.50 | $24.55 |
| 10.0% | $19.15 | $19.62 | $20.15 | $20.76 | $21.47 |
| 11.0% | $17.55 | $17.90 | $18.28 | $18.72 | $19.21 |
| 12.0% | $16.27 | $16.52 | $16.81 | $17.13 | $17.49 |
About Reddit, Inc.
Reddit, Inc. oversees an internet-based service dedicated to fostering diverse online communities. This platform categorizes groups by shared passions, enabling its users to participate in dialogues through recounting experiences, sharing external web addresses, uploading visual and video content, and engaging in direct replies. Founded in 2005, the corporation maintains its central operations in San Francisco, California. Reddit, Inc. also functions as a controlled subsidiary of Advance Publications, Inc.
- Sector
- Communication Services
- Industry
- Internet Content & Information
- CEO
- Steven Ladd Huffman