Snap Inc (SNAP)
Fair ValueFundamental
49
Price
$5.42
Market Cap
$8.83B
Part 1 · What the company is worth
Overview
Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and snaps. It also provides Snapchat+, Lens+, and Snapchat Platinum, a subscription service that provides subscribers access to exclusive, experimental, and pre-release features; Spectacles, an augmented reality (AR) glasses; and advertising products, including AR ads and Snap ads comprises a single image or video ads, collection ads, dynamic ads, story ads, commercials, sponsored snaps, and promoted places. In addition, the company offers campaign management and delivery, an advertising platform that provides automated, sophisticated, and scalable ad buying and campaign management; and measuring advertising effectiveness solutions. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.
No editorial profile for this company yet
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$6.35B
Trailing 12 months (through 6/30/2026)
Net Income
$-311M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$437M
Total Equity
$2.28B
Total Liabilities
$5.40B
Current Ratio
2.94
Interest Coverage
2.24
Debt/EBITDA
-
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$5.92
Current Price
$5.42
Margin of Safety
+8.5%
Fair Value Range
$4.21 - $7.62
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
-
ROE
-20.2%
P/B Ratio
4.84
P/FCF
13.21
Gross Margin
57.3%
ROIC
-4.2%
Profitability Radar
Value Creation (Economic Moat)
ROIC
-4.2%
WACC
8.5%
ROIC − WACC
-12.7 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (11)
- EPS shows upward trend
- Gross Margin 57.3%
- P/FCF 13.21
- Debt/Equity ratio
- Positive Free Cash Flow
- Current Ratio
- Interest Coverage
- Revenue Growth 5Y 18.8%
- Earnings Surprise avg 41.6%
- Net Margin Trend -4.9% vs -9.7%
- Piotroski F-Score 5/9
Failed (11)
- Price CAGR -9.97%
- ROIC -4.2%
- P/B Ratio 4.84
- Operating Margin -5.1%
- CapEx intensity
- Return on Tangible Assets
- Low reliance on intangibles
- DCF valuation (Overvalued)
- ROE -14.6%
- Analyst Consensus 30% Buy
- Share Dilution 2.6%
Unavailable (5)
- Dividend Payout NaN%
- Debt/EBITDA
- Price below Graham Number
- PEG Ratio (need PE > 0 and growth > 0)
- Earnings Quality (OCF/Net Income)
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
Low quality: investigate accounting
Share Dilution
Issuing new shares, diluting ownership
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Evan T. Spiegel | Co-Founder, CEO & Director | 34 |
| Mr. Robert Murphy | Co-Founder, CTO & Director | 36 |
| Ms. Rebecca Morrow | Chief Accounting Officer & Controller | 51 |
| Mr. Zachary M. Briers J.D. | General Counsel | - |
| Mr. Ajit Mohan | Chief Business Officer | - |
| Mr. Doug Hott | Chief Financial Officer | 52 |
| Mr. David Ometer | Head of Investor Relations | - |
| Ms. Grace Kao | Chief Marketing Officer | - |
| Mr. Scott Withycombe | Chief People Officer | - |
| Ms. Kimberlee Archer | Head Of Global Marketing - Augmented Reality & Camera | - |
Audit Risk
9
Board Risk
3
Compensation Risk
8
Shareholder Rights Risk
10
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-05
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-04
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-09-08
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for SNAP, sourced from Markets Gazette.
- 14d agoPOSITIVESnap corre dopo partnership per occhiali realtà aumentata nei posti di lavoro
Snap Inc. is trading up 4.02% following a significant partnership announcement involving tech giants Salesforce, Amazon, and NVIDIA. This collaboration aims to integrate Snap's augmented reality (AR) technology into workplace solutions, enhancing productivity and user experience. The move signals Snap's strategic expansion beyond social media into enterprise applications, leveraging its AR capabilities for business clients. For investors, this diversification could unlock new revenue streams and solidify Snap's position in the growing AR market, potentially driving future growth and stock appreciation.
- 8/17/2026NEGATIVEPerché le azioni Snap scendono lunedì?
Snap Inc. (SNAP) shares are declining as investors digest significant regulatory and legal headwinds, compounded by substantial insider selling. The stock is trading just above its 20-day moving average, with a break below $4.99 potentially accelerating bearish momentum. Snap has been a disappointing investment in 2026, down approximately 40% year-to-date. Notably, CTO Robert Murphy sold 4 million shares, a move that appears to be a primary driver for the current investor reaction. This combination of regulatory concerns and insider divestment signals a challenging outlook for the company.
- 6/18/2026NEGATIVE'Sad' That No One Will Tell Snap CEO The Truth, Says Analyst On Company's 'Horrendous' Product Design For $2,195 AR Glasses
An analyst expressed strong criticism regarding Snap Inc.'s product design for its new $2,195 augmented reality glasses, calling it 'horrendous' and lamenting that the company's CEO may not be receiving candid feedback. This critique suggests potential market reception issues and significant development challenges for a key product launch. Investors should monitor user adoption rates and any subsequent design revisions, as such negative sentiment could impact future revenue streams and the company's stock performance.
- 6/17/2026NEGATIVESnap breaks from the pack with heavy $2,195 smart glasses. Wall Street is panning the move.
Snap Inc. shares continued their downward trend following the announcement of new smart glasses priced at $2,195. Wall Street analysts widely view the high price point as a significant barrier to mass adoption, labeling the product a potential 'nonstarter.' This move is seen as a considerable risk for the company, potentially diverting resources and focus from core operations without a clear path to widespread consumer acceptance. Investors are expressing concern over the financial viability and market reception of such a premium-priced hardware offering.
- 5/7/2026NEGATIVESnap Quietly Ends Perplexity Alliance That Had Investors Excited
Snap Inc. shares experienced a decline following the company's mixed Q1 financial results and the dissolution of its strategic alliance with Perplexity AI. The termination of this partnership, which had previously generated investor enthusiasm for its potential in AI-driven advertising solutions, raises concerns about Snap's future ad revenue growth trajectory. Investors are now scrutinizing the company's ability to innovate and maintain competitive positioning in the digital advertising market without key collaborations.
- 4/21/2026NEGATIVESnap Announces CFO Exit Days After Job Cuts In A Bid To Improve Profitability— Insider Doug Hott To Take Over
Snap Inc. announced a significant leadership change with the departure of its Chief Financial Officer, Derek Andersen, effective April 20. This comes shortly after the company implemented job cuts as part of a broader strategy to enhance profitability. Doug Hott, previously the VP of Finance, has been appointed as the new CFO. Investors often view sudden CFO departures, especially following layoffs and during restructuring, as a sign of internal challenges or strategic shifts that may impact future performance and financial stability.
- 4/16/2026NEGATIVECan Cost Cuts Save Snap? Analysts Skeptical As North American Users Decline
Snap Inc. is implementing significant cost-saving measures, including a 16% workforce reduction aimed at saving $500 million. Despite a potential uptick in earnings estimates due to these cuts, market analysts express skepticism. The primary concern remains the persistent decline in North American user numbers, which poses a substantial threat to the company's long-term growth prospects and user engagement. This user attrition overshadows the immediate financial restructuring, signaling potential headwinds for the social media platform.
- 4/15/2026NEGATIVESnap to cut about 1,000 jobs, or 16% of its global workforce
Snap Inc. announced significant workforce reductions, cutting approximately 1,000 jobs, which represents about 16% of its global staff. The company disclosed in a regulatory filing that these layoffs are expected to incur severance and related costs ranging from $95 million to $130 million. This move signals a strategic restructuring, likely aimed at improving operational efficiency and profitability. Investors often view large-scale layoffs as a sign of financial distress or a necessary but painful step towards cost control, which can negatively impact short-term sentiment and employee morale.
- 4/15/2026POSITIVESnap To Slash 1,000 Jobs As AI Productivity Picks Up— Stock Climbs 11%
Snap Inc. announced a significant restructuring, including the elimination of 1,000 jobs and the closure of open positions. This move is strategically designed to reduce operational costs and enhance profitability. The company's stock saw an 11% surge following the announcement, indicating investor optimism about the cost-saving measures and potential for improved financial performance. The focus on AI-driven productivity is expected to streamline operations and drive efficiency, which could lead to better margins and a stronger market position.
via Markets Gazette