Reddit, Inc. (RDDT) Financial Ratios
6 years of historical data (2020–2025) · Communication Services · Internet Content & Information
EV/EBITDA
71.04
↓-29% vs avg
5yr avg: 99.42
30Y Low99.4·High99.4
P/FCF
↓
48.91
↓-52% vs avg
5yr avg: 102.23
30Y Low67.9·High136.6
P/B Ratio
↑
12.06
↓-19% vs avg
5yr avg: 14.85
30Y Low13.8·High15.9
ROE
↑
20.9%
↓+238% vs avg
5yr avg: -15.1%
30Y Low-56%·High21%
Debt/EBITDA
0.05
+0% vs avg
5yr avg: 0.05
30Y Low0.1·High0.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
RDDT Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Reddit, Inc. trades at 66.7x earnings, 24% below its 5-year average of 87.7x, sitting at the 0th percentile of its historical range. Compared to the Communication Services sector median P/E of 15.3x, the stock trades at a premium of 336%. On a free-cash-flow basis, the stock trades at 48.9x P/FCF, 52% below the 5-year average of 102.2x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Market Cap | $33.5B | $46.5B | $29.5B | — | — | — | — |
| Enterprise Value | $32.5B | $45.5B | $28.9B | — | — | — | — |
| P/E Ratio → | 66.69 | 87.74 | — | — | — | — | — |
| P/S Ratio | 15.19 | 21.09 | 22.67 | — | — | — | — |
| P/B Ratio | 12.06 | 15.86 | 13.83 | — | — | — | — |
| P/FCF | 48.91 | 67.91 | 136.55 | — | — | — | — |
| P/OCF | 48.44 | 67.25 | 132.71 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
RDDT EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Reddit, Inc.'s enterprise value stands at 71.0x EBITDA, 29% below its 5-year average of 99.4x. The Communication Services sector median is 9.6x, placing the stock at a 639% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 20.67 | 22.25 | — | — | — | — |
| EV / EBITDA | 71.04 | 99.42 | — | — | — | — | — |
| EV / EBIT | 73.61 | 103.01 | — | — | — | — | — |
| EV / FCF | — | 66.55 | 134.07 | — | — | — | — |
RDDT Profitability
Margins and return-on-capital ratios measuring operating efficiency
Reddit, Inc. earns an operating margin of 20.1%, significantly above the Communication Services sector average of 1.6%. Operating margins have expanded from -17.4% to 20.1% over the past 3 years, signaling improving operational efficiency. ROE of 20.9% indicates solid capital efficiency. ROIC of 18.4% represents solid returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Gross Margin | 91.2% | 91.2% | 90.5% | 86.2% | 84.3% | 85.0% | 76.0% |
| Operating Margin | 20.1% | 20.1% | -43.1% | -17.4% | -25.8% | -26.2% | -27.3% |
| Net Profit Margin | 24.1% | 24.1% | -37.2% | -11.3% | -23.8% | -26.4% | -25.9% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| ROE | 20.9% | 20.9% | -56.4% | -17.1% | -10.4% | -12.6% | -12.9% |
| ROA | 19.0% | 19.0% | -24.6% | -5.7% | -9.8% | -11.8% | -11.3% |
| ROIC | 18.4% | 18.4% | -104.2% | -77.9% | -19.8% | -31.3% | -12.8% |
| ROCE | 17.2% | 17.2% | -30.9% | -9.5% | -11.2% | -12.4% | -13.2% |
RDDT Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Reddit, Inc. carries a Debt/EBITDA ratio of 0.1x, which is very conservative (99% below the sector average of 3.6x). The company holds a net cash position — cash of $954M exceeds total debt of $23M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.01 | — | 0.01 | 0.01 | 0.04 |
| Debt / EBITDA | 0.05 | 0.05 | — | — | — | — | — |
| Net Debt / Equity | — | -0.32 | -0.25 | — | -0.28 | -0.84 | -0.20 |
| Net Debt / EBITDA | -2.03 | -2.03 | — | — | — | — | — |
| Debt / FCF | — | -1.36 | -2.48 | — | — | — | — |
| Interest Coverage | — | — | — | — | — | — | — |
Net cash position: cash ($954M) exceeds total debt ($23M)
RDDT Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Reddit, Inc.'s current ratio of 11.56x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has improved from 11.08x to 11.56x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Current Ratio | 11.56 | 11.56 | 12.63 | 11.08 | 13.94 | 22.72 | 9.52 |
| Quick Ratio | 11.56 | 11.56 | 12.63 | 11.08 | 13.94 | 22.72 | 9.52 |
| Cash Ratio | 9.13 | 9.13 | 10.46 | 9.08 | 11.90 | 20.06 | 7.29 |
| Asset Turnover | — | 0.68 | 0.56 | 0.50 | 0.42 | 0.29 | 0.44 |
| Inventory Turnover | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 97.80 | 98.12 | 114.87 | 108.99 | 122.28 | 147.40 |
RDDT Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Reddit, Inc. does not currently pay a dividend and has no material buyback yield, reinvesting earnings back into the business. The earnings yield of 1.5% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.5% | 1.1% | — | — | — | — | — |
| FCF Yield | 2.0% | 1.5% | 0.7% | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | — | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | — | — | — | — |
| Shares Outstanding | — | $202M | $180M | $163M | $163M | $163M | $163M |
Peer Comparison
Compare RDDT with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 RDDTYou | $33B | 66.7 | 71.0 | 48.9 | 91.2% | 20.1% | 20.9% | 18.4% | 0.1 |
 PINS | $13B | 33.3 | 37.0 | 10.8 | 80.1% | 7.6% | 8.8% | 6.1% | 0.8 |
 SNAP | $8B | -17.2 | — | 18.0 | 55.0% | -9.0% | -19.5% | -6.9% | — |
 BMBL | $345M | -0.4 | 2.7 | 1.4 | 68.3% | 26.3% | -69.6% | 13.4% | 2.1 |
 MTCH | $8B | 14.9 | 11.4 | 8.1 | 72.8% | 25.0% | — | 23.7% | 4.1 |
 IAC | $3B | -32.1 | 14.2 | 70.9 | 66.8% | -4.1% | -1.9% | -1.2% | 5.5 |
 META | $1.5T | 24.6 | 14.8 | 31.7 | 82.0% | 41.4% | 30.2% | 27.6% | 0.8 |
 GOOGL | $4.5T | 34.0 | 29.8 | 60.8 | 59.7% | 32.1% | 35.7% | 25.1% | 0.4 |
 SPOT | $96B | 38.8 | 35.2 | 29.2 | 32.0% | 12.8% | 31.9% | 40.5% | 1.0 |
 YELP | $1B | 10.2 | 4.4 | 3.9 | 90.3% | 12.6% | 20.0% | 25.1% | 0.2 |
 ZD | $2B | 40.0 | 4.6 | 5.9 | 70.0% | 14.1% | 2.7% | 7.2% | 2.1 |
| Communication Services Median | — | 15.3 | 9.6 | 11.4 | 48.5% | 1.6% | 2.0% | 2.6% | 3.6 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 6 years · Updated daily
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RDDT — Frequently Asked Questions
Quick answers to the most common questions about buying RDDT stock.
What is Reddit, Inc.'s P/E ratio?
Reddit, Inc.'s current P/E ratio is 66.7x. The historical average is 87.7x.
What is Reddit, Inc.'s EV/EBITDA?
Reddit, Inc.'s current EV/EBITDA is 71.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 99.4x.
What is Reddit, Inc.'s ROE?
Reddit, Inc.'s return on equity (ROE) is 20.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -14.7%.
Is RDDT stock overvalued?
Based on historical data, Reddit, Inc. is trading at a P/E of 66.7x. Compare with industry peers and growth rates for a complete picture.
What are Reddit, Inc.'s profit margins?
Reddit, Inc. has 91.2% gross margin and 20.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Reddit, Inc. have?
Reddit, Inc.'s Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.