Using the industry peer median P/E multiple (trailing + forward), AppLovin Corporation (APP) has a fair value of $344.92 based on 2 comparable companies in the Software - Application industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| AppLovin CorporationAPP | 133,474 | 40.0x | 25.0x |
| Intuit Inc.INTU | 120,829 | 31.8x | 18.7x |
| Workday, Inc.WDAY | 34,037 | 49.8x | 12.3x |
| Industry Median | 40.8x | 15.5x | |
| (*) Profit after tax | 3,334 | 5,347 | |
| Equity Value | 135,899 | 100,009 | |
| (/) Outstanding shares | 342 | 342 | |
| Fair Price | $397 | $292 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.