Reddit, Inc. (RDDT) P/E Ratio History
Historical price-to-earnings valuation from 2025 to 2026
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RDDT Valuation Context
How does the current P/E compare to historical and market benchmarks?
P/E Ratio Analysis
As of May 6, 2026, Reddit, Inc. (RDDT) trades at a price-to-earnings ratio of 63.5x, with a stock price of $166.49 and trailing twelve-month earnings per share of $3.49.
The current P/E is 42% below its 5-year average of 108.7x. Over the past five years, RDDT's P/E has ranged from a low of 38.1x to a high of 164.2x, placing the current valuation at the 20th percentile of its historical range.
Compared to the Communication Services sector median P/E of 15.2x, RDDT trades at a 317% premium to its sector peers. The sector includes 108 companies with P/E ratios ranging from 0.1x to 187.4x.
Relative to the broader market, RDDT commands a significant premium over the S&P 500 median P/E of 25.2x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our RDDT DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
RDDT P/E vs Peers
P/E ratio compared to closely matched public peers
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $14B | 34.7 | - | -77% | |
| $9B | 16.0 | 0.55Best | +18% | |
| $1.6T | 26.1 | 1.42 | -2% | |
| $4.8T | 36.8 | 1.23 | +34% | |
| $88B | 34.5 | - | +91%Best | |
| $2B | 12.6Lowest | - | +19% | |
| $2B | 38.0 | - | -19% |
Peers sorted by market capitalization. P/E below peers may indicate undervaluation or lower growth expectations. Consider PEG ratio for growth-adjusted comparison.
RDDT Historical P/E Data (2025–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Date | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q1 | $134.65 | $3.53 | 38.1x | -65% | |
| FY2025 Q4 | Wed Dec 31 2025 00:00:00 GM | $229.87 | $2.66 | 86.4x | -20% |
| FY2025 Q3 | $229.99 | $1.81 | 127.1x | +17% | |
| FY2025 Q2 | Mon Jun 30 2025 00:00:00 GM | $150.57 | $1.18 | 127.6x | +17% |
| FY2025 Q1 | Mon Mar 31 2025 00:00:00 GM | $104.90 | $0.64 | 164.2x | +51% |
Average P/E for displayed period: 108.7x
Full RDDT Stock Analysis
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Start ComparisonRDDT — Frequently Asked Questions
Quick answers to the most common questions about buying RDDT stock.
Is RDDT stock overvalued or undervalued?
RDDT trades at 63.5x P/E, below its 5-year average of 108.7x. At the 20th percentile of historical range, the stock is priced at a discount to its own history.
How does RDDT's valuation compare to peers?
Reddit, Inc. P/E of 63.5x compares to sector median of 15.2x. The premium reflects expected growth above peers.
What is RDDT's PEG ratio?
RDDT PEG ratio is N/A. Above 2.0 indicates premium valuation relative to growth rate. Historical P/E data spans 2025-2026.