Reddit, Inc. (RDDT) P/E Ratio History
UndervaluedTrading at 59.4x vs 5Y avg 97.3x · 33th percentile · Below historical baseline · Data 2025–2026
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P/E Ratio Analysis
As of September 23, 2026, Reddit, Inc. (RDDT) trades at a price-to-earnings ratio of 59.4x, with a stock price of $155.62 and trailing twelve-month earnings per share of $4.31.
The current P/E is 39% below its 5-year average of 97.3x. 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 33th percentile of its historical range.
Compared to the Communication Services sector median P/E of 14.9x, RDDT trades at a 298% premium to its sector peers. The sector includes 106 companies with P/E ratios ranging from 0.1x to 191.8x.
Relative to the broader market, RDDT commands a significant premium over the S&P 500 median P/E of 25.5x. 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 Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
RDDT P/E vs Peers
Social, Video, and Streaming Platforms peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $12B | 30.1 | - | -77% | |
| $10B | 17.5 | 0.60Best | +18% | |
| $1.9T | 31.4 | 1.70 | -2% | |
| $4.2T | 32.5 | 1.09 | +34% | |
| $103B | 41.6 | - | +91%Best | |
| $1B | 8.5Lowest | - | +19% | |
| $2B | 50.6 | - | -19% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
RDDT Historical P/E Data (2025–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q2 | - | $173.58 | $4.30 | 40.4x | -59% |
| FY2026 Q1 | - | $134.65 | $3.53 | 38.1x | -61% |
| FY2025 Q4 | Dec 31 2025 | $229.87 | $2.66 | 86.4x | -11% |
| FY2025 Q3 | - | $229.99 | $1.81 | 127.1x | +31% |
| FY2025 Q2 | Jun 30 2025 | $150.57 | $1.18 | 127.6x | +31% |
| FY2025 Q1 | Mar 31 2025 | $104.90 | $0.64 | 164.2x | +69% |
Average P/E for displayed period: 97.3x
RDDT Chart Terminal
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Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Historical Returns
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Peer Comparison
Compare growth, multiples, and margins vs sector.
RDDT — Frequently Asked Questions
Quick answers to the most common questions about buying RDDT stock.
What is RDDT's P/E ratio?
Reddit, Inc. (RDDT) trailing twelve-month P/E ratio is 59.4x, based on TTM diluted EPS of $4.31. The 5-year average P/E is 97.3x and the historical range spans 38.1x to 164.2x.
Is RDDT stock overvalued or undervalued?
RDDT trades at 59.4x P/E, below its 5-year average of 97.3x. At the 33th percentile of its historical range (38.1x–164.2x), the stock is priced at a discount to its own history.
Is RDDT stock expensive?
No, RDDT is not expensive on a historical basis. The current P/E of 59.4x is below the 5-year average of 97.3x and sits at the 33th percentile of its valuation range.
What is RDDT's historical P/E range?
Over the past 5 years, RDDT's P/E ratio has ranged from 38.1x to 164.2x, with a median of 127.1x and an average of 97.3x. The current P/E of 59.4x places the stock at the 33th percentile of this range. Full historical data spans 2025–2026.
How does RDDT's P/E compare to the S&P 500?
RDDT trades at 59.4x P/E versus the S&P 500 median of 25.5x. The 133% premium to the market typically reflects higher expected earnings growth or quality.
How does RDDT's valuation compare to Communication Services peers?
Reddit, Inc. P/E of 59.4x compares to the Communication Services sector median of 14.9x. The premium reflects expected growth above peers or stronger fundamentals. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is RDDT's PEG ratio?
RDDT PEG ratio is N/A, based on a P/E of 59.4x and EPS growth of 197.4%. PEG normalises P/E by growth and helps compare stocks with different earnings trajectories.
What is RDDT's earnings yield?
RDDT earnings yield is 1.68%, the inverse of its 59.4x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.