Reddit (RDDT)
Forward P/E is 22.40x against a peer median of 18.60x, a ratio of 1.20x — above the fair range on price alone — with trailing P/E 31.64x and PEG 0.53. Latest-quarter revenue grew 61.1% year over year (PRIMARY, EDGAR), far above the cluster median, and with the PEG well below 1.5 the growth exception applies, so the label is FAIRLY PRICED. Delivered demand check: the Interactive media & advertising group's median growth was 39.5% year over year — demand rising, and Reddit grew much faster than that median.
What would change this label: Move to OVERVALUED if revenue growth falls to 39.5% year over year or below while the forward P/E stays above about 21.4x (1.15x the peer median), since the growth exception would no longer apply, or if the PEG rises above 1.5. Move to UNDERVALUED if the forward P/E compresses to about 16.7x or below (0.90x the peer median) while revenue growth stays above 39.5% year over year.
Reddit runs an online discussion platform paid for mostly by advertising. Its shares cost about 20% more per dollar of expected profit than similar companies, but its sales grew 61.1%, much faster than the group, so the higher price is backed by delivered growth. That makes the shares look fairly priced.
Both lines start at 100 on 2024-03-21. Over the full window Reddit returned +170.54% and the S&P 500 +47.39% (price returns; dividends not reinvested). Worst peak-to-trough fall for Reddit: -61.4% (2025-02-07 to 2025-04-04). Source: Nasdaq official daily history.
What the label rests on
Forward P/E is 22.40x against a peer median of 18.60x, a ratio of 1.20x — above the fair range on price alone — with trailing P/E 31.64x and PEG 0.53. Latest-quarter revenue grew 61.1% year over year (PRIMARY, EDGAR), far above the cluster median, and with the PEG well below 1.5 the growth exception applies, so the label is FAIRLY PRICED. Delivered demand check: the Interactive media & advertising group's median growth was 39.5% year over year — demand rising, and Reddit grew much faster than that median. The company’s forward P/E is 22.4× against a peer median of 18.6×. Its own history: UNVERIFIED — no sourced range available. Sector demand read: Delivered demand check: the Interactive media & advertising group's median latest-quarter revenue growth was 39.5% year over year (SEC filings) — demand rising. Reddit grew at 61.1%, well above that median. Latest-quarter sales growth was +61.1% versus a year earlier (SEC filings).
| Company | Price (Oct 28, 2026) | Forward P/E | Trailing P/E |
|---|---|---|---|
| Reddit (RDDT) | $135.75 | 22.4× | 31.6× |
| OMC | — | 7.2× | 30.0× |
| APP | — | 14.4× | 19.8× |
| META | — | 18.6× | 20.9× |
| GOOG | — | 23.9× | 16.1× |
| GOOGL | — | 24.2× | 16.2× |
| Peer median | 18.6× |
Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.
Sales, profit and cash
This company does not report a gross-profit line in its SEC facts (normal for banks, payment networks and some health insurers), so profit is shown as net income instead — gross margin is marked UNVERIFIED-absent rather than estimated.
Free cash flow = cash from operations minus spending on plant and equipment, both from the company’s SEC cash-flow statement. Gaps are quarters where that spending line is not separately tagged in the filings — shown as gaps, never estimated.
| Quarter | Sales | Gross margin | Net income | EPS (GAAP, diluted) | Free cash flow |
|---|---|---|---|---|---|
| Q/E Jun 2026 2026-06-30 | $805M | — | $253M | 1.25 | $261M |
| Q/E Mar 2026 2026-03-31 | $663M | — | $204M | 1.01 | $311M |
| Q/E Dec 2025 2025-12-31 | $726M | — | $252M | — | $264M |
| Q/E Sep 2025 2025-09-30 | $585M | — | $163M | 0.80 | $183M |
| Q/E Jun 2025 2025-06-30 | $500M | — | $89M | 0.45 | $111M |
| Q/E Mar 2025 2025-03-31 | $392M | — | $26M | 0.13 | $127M |
| Q/E Dec 2024 2024-12-31 | $428M | — | $71M | — | $89M |
| Q/E Sep 2024 2024-09-30 | $348M | — | $30M | 0.16 | $70M |
| Q/E Jun 2024 2024-06-30 | $281M | — | $-10M | -0.06 | $27M |
| Q/E Mar 2024 2024-03-31 | $243M | — | $-575M | -8.19 | $29M |
| Q/E Dec 2023 2023-12-31 | $250M | — | $19M | — | $-22M |
| Q/E Sep 2023 2023-09-30 | $208M | — | $-7M | -0.13 | $-12M |
The last twelve reported quarters. Full 14-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.
Earnings: getting better or worse?
Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.
Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.
Key facts
| Item | Value |
|---|---|
| Company (legal name in filings) | Reddit, Inc. |
| Chief executive | Steve Huffman (source: https://en.wikipedia.org/wiki/Steve_Huffman) |
| Sector | Communication Services — Interactive Media & Services — runs an online discussion platform paid for mainly by advertising |
| Share price (Oct 28, 2026) | $135.75 |
| Market value (market cap) | $27.6B — share price times shares outstanding of 202,029,721 (SEC filings; SEC EDGAR WeightedAverageNumberOfDilutedSharesOutstanding (latest quarter; dei EntityCommonStockSharesOutstanding series is stale for this filer)) |
| Sales, last twelve months | $2.8B |
| Net income, last twelve months | $871M |
| Free cash flow, last twelve months | $1.0B |
| Latest reported quarter | Q/E Jun 2026 (of 14 quarters in the data pack) |
| Six-year price return vs S&P 500 | +170.54% vs +47.39% |
| Worst peak-to-trough fall | -61.4% (2025-02-07 to 2025-04-04) |
What we could not verify
- Gross profit / gross margin: not tagged as a standalone line in this company's EDGAR company facts (common for banks, payment networks and some healthcare payers) — shown as UNVERIFIED-absent; the page charts revenue and net income instead.
- TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
- Own-history P/E range not yet compiled for this company in the Phase 1 batch run; the label rests on peer-median, growth and PEG evidence.
- Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.
The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.
Sources
- SEC EDGAR submissions — Filing index; company legal name.
https://data.sec.gov/submissions/CIK0001713445.json - SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares.
https://data.sec.gov/api/xbrl/companyfacts/CIK0001713445.json - Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates.
https://api.nasdaq.com/api/quote/RDDT/historical?assetclass=stocks - Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.
Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.