6 years of historical data (2020–2025) · Communication Services · Internet Content & Information
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Reddit, Inc. trades at 57.1x earnings, 35% 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 14.8x, the stock trades at a premium of 287%. On a free-cash-flow basis, the stock trades at 11.3x P/FCF, 89% below the 5-year average of 102.2x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Market Cap | $7.7B | $46.5B | $29.5B | — | — | — | — |
| Enterprise Value | $6.8B | $45.5B | $28.9B | — | — | — | — |
| P/E Ratio → | 57.13 | 87.74 | — | — | — | — | — |
| P/S Ratio | 3.51 | 21.09 | 22.67 | — | — | — | — |
| P/B Ratio | 10.33 | 15.86 | 13.83 | — | — | — | — |
| P/FCF | 11.30 | 67.91 | 136.55 | — | — | — | — |
| P/OCF | 11.19 | 67.25 | 132.71 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
Reddit, Inc.'s enterprise value stands at 14.9x EBITDA, 85% below its 5-year average of 99.4x. The Communication Services sector median is 7.4x, placing the stock at a 101% 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 | 14.86 | 99.42 | — | — | — | — | — |
| EV / EBIT | 15.39 | 103.01 | — | — | — | — | — |
| EV / FCF | — | 66.55 | 134.07 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Reddit, Inc. earns an operating margin of 20.1%. 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.
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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| ROE | 20.9% | 20.9% | -27.1% | -6.2% | -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% | -31.6% | -9.9% | -19.8% | -31.3% | -12.8% |
| ROCE | 17.2% | 17.2% | -30.9% | -9.5% | -11.2% | -12.4% | -13.2% |
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 | 0.02 | 0.01 | 0.01 | 0.04 |
| Debt / EBITDA | 0.05 | 0.05 | — | — | — | — | — |
| Net Debt / Equity | — | -0.32 | -0.25 | -0.26 | -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)
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 | 102.67 | 114.87 | 108.99 | 122.28 | 147.40 |
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 1.8% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
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 | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.8% | 1.1% | — | — | — | — | — |
| FCF Yield | 8.8% | 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 |
Compare RDDT with 9 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
| RDDTYou | $8B | 57.1 | 14.9 | 11.3 | 91.2% | 20.1% | 20.9% | 18.4% | 0.1 |
| JOYY | $20B | -24.0 | — | 91.0 | 36.0% | -18.1% | -2.9% | -6.7% | — |
| DJT | $3B | -4.6 | — | — | 82.9% | -5140.9% | -94.7% | -38.1% | — |
| MOMO | $2B | 8.1 | 10.0 | 11.4 | 39.0% | 14.5% | 8.9% | 11.2% | 2.9 |
| PINS | $1B | 28.8 | 2.0 | 1.1 | 80.1% | 7.6% | 8.8% | 6.2% | 0.7 |
| SNAP | $1B | -18.1 | — | 2.7 | 55.0% | -9.0% | -19.5% | -10.6% | — |
| WB | $898M | 8.8 | 1.6 | 1.6 | 78.9% | 28.2% | 8.5% | 10.3% | 3.4 |
| NXDR | $220M | -12.3 | — | 37.3 | 84.1% | -27.9% | -12.3% | -12.7% | — |
| ZH | $53M | -12.4 | — | — | 60.6% | -13.4% | -3.9% | -25.6% | — |
| ILLR | $43M | -0.1 | — | — | 6.2% | -572.3% | — | -164.1% | — |
| Communication Services Median | — | 14.8 | 7.4 | 10.0 | 50.8% | -0.5% | 2.6% | 1.6% | 3.6 |
Peers based on L4 peer group classification. Compare multiple stocks →
Includes 30+ ratios · 6 years · Updated daily
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Start ComparisonReddit, Inc.'s current P/E ratio is 57.1x. The historical average is 87.7x.
Reddit, Inc.'s current EV/EBITDA is 14.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 99.4x.
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 -8.1%.
Based on historical data, Reddit, Inc. is trading at a P/E of 57.1x. Compare with industry peers and growth rates for a complete picture.
Reddit, Inc. has 91.2% gross margin and 20.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Reddit, Inc.'s Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.