Latest Ratios: P/E Ratio 74.3x · EV/EBITDA 79.3x · ROE 20.9%. (2020–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| Market Cap | $37.3B | $46.5B | $29.5B | — | — | — | — |
| Enterprise Value | $36.3B | $45.5B | $28.9B | — | — | — | — |
| P/E Ratio → | 74.27 | 87.74 | — | — | — | — | — |
| P/S Ratio | 16.92 | 21.09 | 22.67 | — | — | — | — |
| P/B Ratio | 13.43 | 15.86 | 13.83 | — | — | — | — |
| P/FCF | 54.47 | 67.91 | 136.55 | — | — | — | — |
| P/OCF | 53.94 | 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
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 20.67 | 22.25 | — | — | — | — |
| EV / EBITDA | 79.34 | 99.42 | — | — | — | — | — |
| EV / EBIT | 82.21 | 103.01 | — | — | — | — | — |
| EV / FCF | — | 66.55 | 134.07 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
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% | -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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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)
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 1.3% | 1.1% | — | — | — | — | — |
| FCF Yield | 1.8% | 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 |
Volunteer moderation ecosystem dependency
According to current market data, Reddit trades at a 14.51x price-to-sales multiple, which appears to price the company as a high-growth software entity rather than a traditional social media platform, reflecting investor confidence in the scalability of its unique interest-graph data assets and licensing revenue streams.
The 63.69x TTM P/E ratio suggests that the market is heavily discounting future earnings growth, likely anticipating that the company will continue to expand its operating margins as it scales. Investors should monitor whether this valuation premium holds if revenue growth decelerates from its current aggressive trajectory or if the data licensing segment faces competitive headwinds.
Based on reported financial statements, Reddit's ROIC has trended from negative territory in early 2024 to 7.2% by 2026Q1, indicating that the company is successfully transitioning from a capital-intensive growth phase to a more efficient model that generates positive returns on its invested capital base.
The rapid improvement in ROIC is primarily driven by the expansion of operating margins rather than asset turnover, which remains relatively low. This suggests that the company's ability to monetize its existing user base without significant additional infrastructure investment is the primary engine for compounding shareholder value.
As reported in recent filings, Reddit maintains a DSO of 76 days, which, while stable, warrants monitoring as it reflects the company's reliance on advertising agency payment cycles that are inherently slower than the real-time nature of the platform's user engagement and content generation metrics.
The lack of significant inventory and the nature of digital ad revenue mean that the cash conversion cycle is largely dictated by accounts receivable management. The company's ability to maintain these levels suggests effective credit control, though any lengthening of DSO could indicate a shift in the quality of the advertiser base.
Comparing Reddit's 91.5% gross margin to peers like Pinterest and Snap, as shown in recent financial data, reveals a structural advantage that stems from the platform's reliance on volunteer-moderated content, which effectively offloads the cost of content curation and safety to the user community.
This margin gap is the most significant differentiator between Reddit and its social media peers, providing the company with greater flexibility to invest in R&D or marketing. However, this advantage is contingent upon the continued willingness of the volunteer base to perform these functions without direct compensation.
The most commonly misapplied metric for Reddit is the standard social media 'ARPU' growth, which obscures the company's emerging role as a human-curated search engine and data provider, where the value of the underlying corpus may eventually decouple from traditional advertising-based monetization models.
Analysts should instead focus on the 'Data Licensing Revenue' as a percentage of total sales, as this metric better captures the company's unique value proposition in the AI training market. Relying solely on ad-based ARPU risks underestimating the terminal value of the platform's proprietary, high-intent data archive.
Includes 30+ ratios · 6 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying RDDT stock.
Reddit, Inc.'s current P/E ratio is 74.3x. The historical average is 87.7x.
Reddit, Inc.'s current EV/EBITDA is 79.3x. 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 -14.7%.
Based on historical data, Reddit, Inc. is trading at a P/E of 74.3x. 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.