Reddit, Inc. (RDDT) Financial Ratios
6 years of historical data (2020–2025) · Communication Services · Internet Content & Information
EV/EBITDA
66.53
↓-33% vs avg
5yr avg: 99.42
30Y Low99.4·High99.4
P/FCF
↓
45.89
↓-55% vs avg
5yr avg: 102.23
30Y Low67.9·High136.6
P/B Ratio
↑
11.31
↓-24% 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 62.6x earnings, 29% 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 15.4x, the stock trades at a premium of 307%. On a free-cash-flow basis, the stock trades at 45.9x P/FCF, 55% below the 5-year average of 102.2x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Market Cap | $31.4B | $46.5B | $29.5B | — | — | — | — |
| Enterprise Value | $30.5B | $45.5B | $28.9B | — | — | — | — |
| P/E Ratio → | 62.57 | 87.74 | — | — | — | — | — |
| P/S Ratio | 14.26 | 21.09 | 22.67 | — | — | — | — |
| P/B Ratio | 11.31 | 15.86 | 13.83 | — | — | — | — |
| P/FCF | 45.89 | 67.91 | 136.55 | — | — | — | — |
| P/OCF | 45.45 | 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 66.5x EBITDA, 33% below its 5-year average of 99.4x. The Communication Services sector median is 9.0x, placing the stock at a 636% 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 | 66.53 | 99.42 | — | — | — | — | — |
| EV / EBIT | 68.93 | 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%. 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 3.5x). 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 1.6% (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 | 1.6% | 1.1% | — | — | — | — | — |
| FCF Yield | 2.2% | 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 | $31B | 62.6 | 66.5 | 45.9 | 91.2% | 20.1% | 20.9% | 18.4% | 0.1 |
 PINS | $14B | 35.4 | 39.5 | 11.5 | 80.1% | 7.6% | 8.8% | 6.1% | 0.8 |
 SNAP | $10B | -22.2 | — | 23.1 | 55.0% | -9.0% | -19.5% | -6.9% | — |
 BMBL | $403M | -0.5 | 2.9 | 1.7 | 68.3% | 26.3% | -69.6% | 13.4% | 2.1 |
 MTCH | $8B | 15.1 | 11.5 | 8.1 | 72.8% | 25.0% | — | 23.7% | 4.1 |
 IAC | $3B | -32.4 | 14.3 | 71.5 | 66.8% | -4.1% | -1.9% | -1.2% | 5.5 |
 META | $1.6T | 26.3 | 15.8 | 33.9 | 82.0% | 41.4% | 30.2% | 27.6% | 0.8 |
 GOOGL | $4.8T | 36.8 | 32.2 | 65.7 | 59.7% | 32.1% | 35.7% | 25.1% | 0.4 |
 SPOT | $88B | 34.7 | 31.3 | 26.1 | 32.0% | 12.8% | 31.9% | 40.5% | 1.0 |
 YELP | $2B | 12.7 | 6.2 | 5.2 | 90.3% | 12.6% | 20.0% | 25.1% | 0.2 |
 ZD | $2B | 37.7 | 4.4 | 5.7 | 70.0% | 14.1% | 2.7% | 7.2% | 2.1 |
| Communication Services Median | — | 15.4 | 9.0 | 11.8 | 48.3% | 0.7% | 2.2% | 3.0% | 3.5 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 6 years · Updated daily
Full RDDT Stock Analysis
Analyst consensus, bull case, AI-generated risk factors, and peer comparison — all in one place.
See RDDT's True Return
Price is only half the story. See total return with reinvested dividends.
Launch CalculatorIs RDDT Undervalued?
DCF intrinsic value, peer multiples, and analyst estimates — see what the stock is really worth.
View ValuationCompare RDDT vs PINS
Side-by-side business, growth, and profitability comparison vs Pinterest, Inc..
Start ComparisonRDDT — 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 62.6x. The historical average is 87.7x.
What is Reddit, Inc.'s EV/EBITDA?
Reddit, Inc.'s current EV/EBITDA is 66.5x. 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 62.6x. 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.