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Snap Inc (SNAP)

Fair Value
Communication ServicesInternet Content & InformationUnited States

Fundamental

49

Price

$6.23

Market Cap

$9.78B

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.

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Direct competitors

Who this company fights with for the same customers

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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

General caseFairly Valued

Fair Value

$5.93

Current Price

$6.23

Margin of Safety

-5.1%

Fair Value Range

$4.23 - $7.63

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$7.40
Discounted cash flow (DCF):$3.96
Earnings multiple (P/E):Not enough data to compute it
Graham growth formula:Not enough data to compute it
Earnings power value (EPV):Not enough data to compute it
Justified P/B:Not enough data to compute it
Dividend discount (Gordon):Not enough data to compute it
P/FFO, funds from operations:Not enough data to compute it
Mid-cycle earnings:Not enough data to compute it
Revenue multiple:$7.92
Analyst Consensus:Hold (15B / 32H / 3S)
Last Earnings Surprise:+61.69%

Valuation Metrics

P/E Ratio

-

ROE

-20.2%

P/B Ratio

5.58

P/FCF

15.24

Gross Margin

57.3%

ROIC

-4.2%

Profitability Radar

Value Creation (Economic Moat)

ROIC

-4.2%

WACC

8.6%

ROIC − WACC

-12.8 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 15.24
  • Debt/equity ratio
  • Positive free cash flow
  • Current ratio
  • Interest coverage
  • Revenue growth 5Y 18.8%
  • Earnings surprise, average 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 5.58
  • 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 –
  • Debt/EBITDA
  • Price below Graham Number
  • PEG ratio (needs P/E > 0 and growth > 0)
  • Earnings quality (operating cash flow / net income)

Piotroski F-Score

5/9

Mixed signals: some areas need attention

ROA > 0
Operating cash flow > 0
ΔROA > 0
Cash flow > net income
Leverage ↓
Current ratio ↑
No dilution
Gross margin ↑
Asset turnover ↑

Earnings Quality

-

Low quality: investigate accounting

Share Dilution

2.6%

Issuing new shares, diluting ownership

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Evan T. SpiegelCo-Founder, CEO & Director34
Mr. Robert MurphyCo-Founder, CTO & Director36
Ms. Rebecca MorrowChief Accounting Officer & Controller51
Mr. Zachary M. Briers J.D.General Counsel-
Mr. Ajit MohanChief Business Officer-
Mr. Doug HottChief Financial Officer52
Mr. David OmeterHead of Investor Relations-
Ms. Grace KaoChief Marketing Officer-
Mr. Scott WithycombeChief People Officer-
Ms. Kimberlee ArcherHead 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

  • 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

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for SNAP, sourced from Markets Gazette.

  • 5d agoNEGATIVE
    Investor Pushes Snap to Raise Capital for New Specs Business

    Hedge fund Blue Duck Capital Partners is urging Snap Inc. to raise capital by divesting a stake in its emerging Specs business, which focuses on augmented reality glasses. This move signals potential internal strategic disagreements and investor pressure for immediate returns on significant AR investments. The demand for a capital raise via a partial sale of a new venture could indicate concerns about Snap's current cash flow or its ability to fund future growth independently. Investors will monitor Snap's response and the potential impact on its AR strategy and overall financial health.

  • 5d agoNEUTRAL
    Investor Pushes Snap to Raise Capital for Eyeware Business Specs

    Hedge fund Blue Duck Capital Partners is urging Snap Inc. to raise capital by divesting a stake in its emerging Specs business, which focuses on augmented reality glasses. This move intensifies investor scrutiny on Snap's significant investments in AR technology. While the proposal aims to unlock value and potentially fund further development, it also signals potential strategic shifts and capital needs for the company's ambitious ventures. Investors will be watching closely for Snap's response and any potential impact on its financial structure and operational focus.

  • 24d agoPOSITIVE
    Snap 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.

  • 8/17/2026NEGATIVE
    Perché 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.

  • 6/17/2026NEGATIVE
    Snap 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.

  • 5/7/2026NEGATIVE
    Snap 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.

  • 4/21/2026NEGATIVE
    Snap 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.

  • 4/16/2026NEGATIVE
    Can 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.

via Markets Gazette