Strativest CapitalSTRATIVEST RESEARCH
Independent research · Est. October 2026
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Stock X-Ray · Communication Services · S&P 500 Full Coverage — Phase 1

Reddit (RDDT)

X-Ray dated Oct 28, 2026 · Share price as of Oct 28, 2026 intraday, when the valuation snapshot was captured · Financials from SEC filings (EDGAR) · Valuation multiples from a labelled secondary source
The verdict — valuation label: FAIRLY PRICED

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.

22.4×
Forward P/E — price vs next year’s expected earnings (secondary source)
18.6×
Peer median forward P/E — closest comparable companies
31.6×
Trailing P/E — price vs the last twelve months of earnings
9.4×
Price / sales

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.

In simple words

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.

Words we use, in plain English: P/E ratio — the share price divided by earnings per share; how many dollars you pay for one dollar of yearly profit. Forward P/E — the same, using next year’s expected earnings. Free cash flow — cash a company has left after running the business and buying equipment. TTM — the last twelve months. Drawdown — the worst fall from a peak to the low after it.
The share price vs the market — six years
Reddit (RDDT)S&P 500 (SPY)
45176307439570202520262024-03-212026-10-27

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).

CompanyPrice (Oct 28, 2026)Forward P/ETrailing P/E
Reddit (RDDT)$135.7522.4×31.6×
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 median18.6×

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

Sales and profit each quarter
SalesNet income (profit)
$0B$0B$1B$1BMar 2023Mar 2024Mar 2025Mar 2026Jun 2026

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.

Cash left over each quarter (free cash flow)
PositiveNegative
$-0B$0B$0BMar 2023Mar 2024Mar 2025Mar 2026Jun 2026

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.

QuarterSalesGross marginNet incomeEPS (GAAP, diluted)Free cash flow
Q/E Jun 2026
2026-06-30
$805M—$253M1.25$261M
Q/E Mar 2026
2026-03-31
$663M—$204M1.01$311M
Q/E Dec 2025
2025-12-31
$726M—$252M—$264M
Q/E Sep 2025
2025-09-30
$585M—$163M0.80$183M
Q/E Jun 2025
2025-06-30
$500M—$89M0.45$111M
Q/E Mar 2025
2025-03-31
$392M—$26M0.13$127M
Q/E Dec 2024
2024-12-31
$428M—$71M—$89M
Q/E Sep 2024
2024-09-30
$348M—$30M0.16$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.

Mar 2023
-1.05
Jun 2023
-0.70
Sep 2023
-0.13
Dec 2023
—
Mar 2024
-8.19
Jun 2024
-0.06
Sep 2024
0.16
Dec 2024
—
Mar 2025
0.13
Jun 2025
0.45
Sep 2025
0.80
Dec 2025
—
Mar 2026
1.01
Jun 2026
1.25

Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.

Key facts

ItemValue
Company (legal name in filings)Reddit, Inc.
Chief executiveSteve Huffman (source: https://en.wikipedia.org/wiki/Steve_Huffman)
SectorCommunication 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 quarterQ/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.

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