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Is Reddit, Inc. (RDDT) Undervalued? Valuation & Fair Price

At $152.89, 3 of the 4 frameworks would pass on Reddit, Inc. today — Warren Buffett, Benjamin Graham, and Phil Town (Rule #1) rate it Avoid and Peter Lynch rates it Hold. Each model calculates its own fair value and margin of safety; create a free account to see the exact buy price behind every verdict.

RD

Reddit, Inc.

RDDT

Communication Services · Internet Content & Information · NYSE

$152.89

P/E 33.6×

CEO

Steven Ladd Huffman

Sector

Communication Services

Industry

Internet Content & Information

Reddit, Inc. oversees an internet-based service dedicated to fostering diverse online communities. This platform categorizes groups by shared passions, enabling its users to participate in dialogues through recounting experiences, sharing external web addresses, uploading visual and video content, and engaging in direct replies. Founded in 2005, the corporation maintains its central operations in San Francisco, California. Reddit, Inc. also functions as a controlled subsidiary of Advance Publications, Inc.

Investor scorecard

How the four investors rate Reddit, Inc.

3 of 4 frameworks urge caution

Warren Buffett
78%Avoid
Benjamin Graham
50%Avoid
Peter Lynch
83%Hold
Phil Town (Rule #1)
64%Avoid

Investor model analysis

Details locked

At $152.89, 3 of 4 frameworks say Avoid

Business Quality69/100

Intrinsic Value (DCF)

Warren Buffett's valuation model · select an investor above to switch

Intrinsic Value

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Buy Below

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Strong Buy

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Margin of Safety

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Insider & congress activity

Are insiders buying RDDT?

Over recent SEC Form 4 filings, RDDT insiders bought $0 and sold $46.7M of stock across 73 open-market trades. Insiders sell for many reasons, but they buy for one.

Bought $0Sold $46.7M
Recent open-market insider trades for RDDT
InsiderActionSharesValueDate
Huffman Steve LaddCEO & PresidentSell900$142KSep 15, 2026
Huffman Steve LaddCEO & PresidentSell7,602$1.2MSep 15, 2026
Huffman Steve LaddCEO & PresidentSell6,027$966KSep 15, 2026
Huffman Steve LaddCEO & PresidentSell1,079$174KSep 15, 2026
Huffman Steve LaddCEO & PresidentSell1,400$228KSep 15, 2026

Members of Congress have also reported 5 trades in RDDT. See the full insider & congress timeline.

Source: SEC Form 4 filings. Open-market buys & sells only. Not investment advice.

See the interactive insider chart & every trade

Scenario analysis

Bear, base & bull

Three growth assumptions, three fair values — and where today's price lands

What's working

Key strengths

Identified by Buffett framework analysis

Return on Equity

ROE Quality (Low Leverage)

Debt Levels

Risk factors & concerns — free account

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Company financials

5-Year Financials

Income statement highlights — annual, USD

Metric20252024202320222021
Revenue$2.2B
$1.3B
$804M
$667M
$485M
Rev. Growth+69.4%+61.7%+20.6%+37.5%
Net Income$530M-$484M-$91M-$159M-$128M
Net Margin24.1%-37.2%-11.3%-23.8%-26.4%
EPS (Diluted)$2.84$-2.69$-0.56$-0.97$-0.78
Free Cash FlowLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to view

Full analysis included

See the complete picture for RDDT

Exact buy targets, margin of safety, detailed investor checklists, and risk breakdown — all frameworks, all numbers.

Buy & sell targetsFull checklistRisk breakdown

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Educational Use Only · Not Financial Advice

Analysis, scores, valuations, and buy zones are derived from publicly documented investor frameworks (Buffett, Lynch, Benjamin Graham, Phil Town) for learning purposes only. They are not recommendations from licensed financial advisors. Past performance does not guarantee future results. Prices may be delayed up to 15 minutes. Always conduct your own research before making any investment decisions.