Reddit 2027 FCF yield valuation

Reddit, Inc. (RDDT)
By@hypertonx
Assumptions as of 2026-08-05
USD
Updated Aug 11, 2026 · Revised 3 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 2026-08-05

Fair value
$188.63
Upside
20.9%
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

$156.04USD/share
Latest RDDT quote · updated Aug 11, 2026 2:00 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. Q2 2026 revenue, profitability, users, ARPU, FCF, cash, shares, repurchases and Q3 outlook — sec.gov
  2. June 30, 2026 financial statements and stock-based compensation — sec.gov
  3. Q2 2026 management discussion of traffic quality, Google search volatility, monetization and investment — modeledge.ai

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