A meaningful DCF fair value isn't available for Snap Inc. (SNAP) — its free-cash-flow and net-debt profile makes a standard discounted-cash-flow model unreliable (common for loss-makers and high-net-debt or recently-public companies), and no analyst DCF is published. Explore your own assumptions with the editable model below.
What would today's price require?
$5.32 is justified only if free cash flow grows about +48.4% a year (fading to 2.5% long-run) at a 9.2% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 10.7%/yr | 10.2% | N/A |
| Base case | 13.7%/yr | 9.2% | $0.14 |
| Optimistic | 16.7%/yr | 8.2% | $0.81 |
Current Price
$5.32
Market-Implied Growth
+48.4%/yr
vs +13.7% 5Y actual
Base-Case Model Value
N/A
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for SNAP (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $137.0M · 1.69B shares · net debt $3.1B
Estimated Fair Value
$0.14
-97.3% vs $5.32
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 13.7%/yr FCF growth and 10-year horizon fixed. Green = above today's $5.32; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 7.2% | $0.59 | $0.79 | $1.03 | $1.33 | $1.70 |
| 8.2% | $0.21 | $0.35 | $0.51 | $0.70 | $0.93 |
| 9.2% | N/A | $0.03 | $0.14 | $0.28 | $0.43 |
| 10.2% | N/A | N/A | N/A | N/A | $0.08 |
| 11.2% | N/A | N/A | N/A | N/A | N/A |
