Reddit, Inc. — Internet Content & Information. Scored on the same transparent model behind the daily rankings.
★
RDDT
Reddit, Inc. · Internet Content & Information
FCF$1.0bC+
Rev+66.6%A
D/E0.01A
P/E36.9xC+
PEG1.05B+
67.4Score
$158.72$30.5B
1Y Target$216.35Analyst consensus · 33 analysts
5Y Target$316.76Compound horizon
10Y Target$469.89Long-dated conviction
FCF$1.0bTTMC+
FCF $1.0b — respectable but not differentiating
Rev+66.6%TTM YoYA
Revenue +66.6% — hypergrowth, top decile
D/E0.01A
D/E 0.01 — least levered decile in Communication Services (≈10th pctile)
P/E36.9xC+
P/E 36.9 — above the Communication Services median (≈75th pctile)
PEG1.05B+
PEG 1.05 — near fair value, classic Lynch benchmark (1.0)
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 67.4
Quality0.80
Growth1.00
Value0.38
Why this score
Diluting shareholders
Short track record
Entry · Margin of safety
52-week rangeNear 52-week low
44% off the 12-month high
vs DCF fair value123% aboveest. fair value ~$71
What the price assumes: free cash flow compounding at ~38% a year for the next decade — vs the ~25% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability70% · Agross profit ÷ total assets (Novy-Marx)
ROIC18.9% · A-return on invested capital — not score-weighted
Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.
Why now
Internet Content & Information · market cap $30.5b. Down 44% from 52-week high of $282.95 — deep drawdown territory. Revenue growing +67% — in hypergrowth territory. 33 sell-side analysts rate this a Buy with a mean 1-yr target of $216.35 (implying +36% upside).
Moat
Net margin 31% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 27% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 117% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Down 44% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 2.03 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 37x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon
1-3 yr $216.35 (33-analyst consensus) — fundamentals + valuation re-rating. 5 yr $316.76 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $469.89 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
RDDT vs the Top Picks average
Pillar
RDDT
Book avg
Diff
Quality
0.80
0.83
-0.03
Growth
1.00
0.91
+0.09
Value
0.38
0.76
-0.38
Averaged across the 30 names in today's Top Picks (mean score 82.8). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · RDDT
Trend
+2.6 over 37 daily scores
From 64.8 (Jun 22) → 67.4 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · RDDT
$
%
%
Shares to buy
12
Position size
$1,905
3.8% of portfolio
Stop price
$119.04
25% below $158.72
$ at risk if stopped
$476.16
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Reddit, Inc. (RDDT): score, valuation & FAQ
Reddit, Inc. (RDDT) is a Internet Content & Information company that scores 67.4 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (A), D/E (A) and PEG (B+). On valuation, RDDT sits about 123% above our discounted-cash-flow fair value — the current price implies roughly 38% annual free-cash-flow growth over the next decade.
Is RDDT a good stock to buy?
Bull Rankings scores RDDT 67.4 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by Rev (A), D/E (A) and PEG (B+). A score is a quantitative screen of Reddit, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does RDDT score 67.4 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). RDDT earns its highest marks on Rev (A), D/E (A) and PEG (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is RDDT overvalued or undervalued?
Based on $158.72, RDDT sits about 123% above our discounted-cash-flow fair value — the current price implies roughly 38% annual free-cash-flow growth over the next decade. It trades at a 36.9x× P/E (graded C+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in RDDT?
Down 44% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 2.03 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 37x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.