Reddit 2027 FCF yield valuation

Reddit, Inc. (RDDT)
By@hypertonx
Assumptions as of 2026-10-15
USD
Updated Oct 15, 2026 · Revised 6 times
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Reddit 2027 FCF yield valuation

Forward 2027 EV/FCF yield valuation for Reddit. The model capitalizes normalized 2027 free cash flow and adds net cash. Q2 2026 results support a higher revenue and margin base, while the valuation still requires sustained direct-user growth, monetization, and disciplined stock compensation.

as of 2026-10-15

Fair value
$188.63
Upside
30.7%
2027 FCF
$1.8k
Enterprise value
$36.3k
Equity value
$39.0k
Target EV/FCF yield
5.0%

2027 forecast

37.0%
$4.9kUSDm

Balance sheet

$2.8kUSDm
$0.0USDm

Market

$144.27USD/share
Latest RDDT quote · updated Oct 23, 2026 1:59 PM MDT

Share count

207.0M shares

Valuation

5.0%

2027 FCF valuation bridge

FY2027E
Revenue$4.9k
Free cash flow$1.8k
Enterprise value$36.3k
Equity value$39.0k
Fair value per share$188.63

Sources

  1. October 15 Model Edge regular-session RDDT reference $159.37, refreshed 2026-10-15T15:04:34.918885-06:00. Retrieval time is not trade time. Scope and separate financial-anchor changes are described in refresh context. (accessed 2026-10-15)
  2. September 10 Modeledge reference share price $155.365; market price alone is not used to revise operating forecasts. (accessed 2026-09-10)
  3. September 10 mover and company-news checks found no verified new catalyst or fundamental input change. Preserve the current YAML's 5% FCF yield; the legacy 3% research narrative is not the active calculation. (accessed 2026-09-10)
  4. Q2 2026 revenue, profitability, users, ARPU, FCF, cash, shares, repurchases and Q3 outlook — sec.gov
  5. June 30, 2026 financial statements and stock-based compensation — sec.gov
  6. Q2 2026 management discussion of traffic quality, Google search volatility, monetization and investment — modeledge.ai
  7. September 8 conference emphasized direct/app retention and ongoing Google licensing negotiations without disclosed economics or a new quantified outlook. August 12 8-K disclosed the chief legal officer transition effective September 14. — modeledge.ai (accessed 2026-09-08)

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