Pinterest, Inc. (PINS) DCF Valuation
TGM's two-stage DCF values Pinterest, Inc. (PINS) between $29.15 and $49.66 depending on assumptions, with a base case of $38.17. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use) (capped at 18%)), fading to 2.5% long-run; the discount rate (8.6%) reflects its beta.
What would today's price require?
$21.50 is justified only if free cash flow grows about +3.2% a year (fading to 2.5% long-run) at a 8.6% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 15.0%/yr | 9.6% | $29.15 |
| Base case | 18.0%/yr | 8.6% | $38.17 |
| Optimistic | 20.0%/yr | 7.6% | $49.66 |
| Analyst DCF (FMP) | independent reference — different model | $6.08 | |
Current Price
$21.50
Market-Implied Growth
+3.2%/yr
vs +18.1% 5Y actual
Model Scenario Range
$29.15 – $49.66
model output — not a price target
PINS DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for PINS (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 $772.4M · 0.66B shares · net cash $927.9M
Estimated Fair Value
$65.03
+202.4% vs $21.50
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 18.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $21.50; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.6% | $86.44 | $93.73 | $103 | $114 | $130 |
| 7.6% | $70.00 | $74.60 | $80.11 | $86.81 | $95.15 |
| 8.6% | $58.35 | $61.43 | $65.03 | $69.26 | $74.33 |
| 9.6% | $49.69 | $51.85 | $54.32 | $57.16 | $60.47 |
| 10.6% | $43.03 | $44.60 | $46.36 | $48.35 | $50.63 |
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