Snap Inc.

SNAP

Communication ServicesInternet Content & InformationNYSE

$5.94

Market Cap: $10.03B

Snap Inc. (SNAP) Valuation Summary

Updated Apr 6, 2026 22:28

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.02 – $66.37	$4.26	-9.7%
Revenue DCF 10Y	$0.53 – $83.90	$6.82	+44.4%
▸ Trading Multiples
EV/Revenue	$3.72 – $11.54	$7.76	+64.3%

Valuation History

DCF Analysis

Snap Inc. (SNAP) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$6.82

Market Price

$5.94

Upside / Downside

+14.8%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -9.0% to a target of 10.4% over 5 years, discounted at a WACC of 5.6%, Snap Inc. (SNAP) has an intrinsic value of $6.82 per share (range: $0.53 – $83.90).

Key Assumptions

Current Operating Margin

-9.0%

Target Operating Margin

10.4%

WACC

5.6%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.3%

Target CapEx/Rev

6.0%

D&A/Revenue

3.3%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	6,714	13.2%	-5.1%	-342	-342	224	(239)	294	-651	-634
2027	7,373	9.8%	-1.2%	-90	-90	246	(282)	142	-268	-247
2028	7,978	8.2%	2.7%	213	168	266	(327)	130	-24	-21
2029	8,611	7.9%	6.5%	564	445	287	(376)	136	219	181
2030	9,255	7.5%	10.4%	965	762	308	(430)	139	502	393
2031	10,039	8.5%	10.4%	1,046	827	334	(493)	169	499	369
2032	10,779	7.4%	10.4%	1,123	888	359	(559)	159	528	370
2033	11,455	6.3%	10.4%	1,194	943	381	(625)	146	554	368
2034	12,050	5.2%	10.4%	1,256	992	401	(690)	128	575	362
2035	12,543	4.1%	10.4%	1,307	1,033	418	(753)	106	592	352

Enterprise Value Bridge

Sum of PV(FCFF)1,493

Terminal Value (Gordon Growth at 3.0%)23,350

PV of Terminal Value13,903

Enterprise Value15,396

(–) Net Debt3,671

Equity Value11,725

(÷) Shares Outstanding1,720

Fair Value per Share$6.82

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.4%	7.4%	10.4%	13.4%	16.4%
3.6%	$-3	$19	$40	$62	$84
4.6%	$-3	$5	$13	$21	$29
5.6%	$-3	$2	$7	$12	$17
6.6%	$-3	$1	$4	$7	$11
7.6%	$-3	$-0	$2	$5	$8

Current price: $5.94. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 21.5% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Snap Inc. (SNAP) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$4.26

Market Price

$5.94

Upside / Downside

-28.3%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -9.0% to a target of 10.4% over 5 years, discounted at a WACC of 5.6%, Snap Inc. (SNAP) has an intrinsic value of $4.26 per share (range: $0.02 – $66.37).

Key Assumptions

Current Operating Margin

-9.0%

Target Operating Margin

10.4%

WACC

5.6%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.3%

Target CapEx/Rev

6.0%

D&A/Revenue

3.3%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	6,714	13.2%	-5.1%	-342	-342	224	(257)	294	-670	-652
2027	7,373	9.8%	-1.2%	-90	-90	246	(322)	142	-308	-284
2028	7,978	8.2%	2.7%	213	168	266	(392)	130	-89	-77
2029	8,611	7.9%	6.5%	564	445	287	(470)	136	126	104
2030	9,255	7.5%	10.4%	965	762	308	(555)	139	376	294

Enterprise Value Bridge

Sum of PV(FCFF)-615

Terminal Value (Gordon Growth at 3.0%)14,849

PV of Terminal Value11,616

Enterprise Value11,001

(–) Net Debt3,671

Equity Value7,330

(÷) Shares Outstanding1,720

Fair Value per Share$4.26

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.4%	7.4%	10.4%	13.4%	16.4%
3.6%	$-3	$10	$29	$48	$66
4.6%	$-3	$2	$9	$16	$23
5.6%	$-3	$0	$4	$9	$13
6.6%	$-3	$-1	$2	$5	$8
7.6%	$-3	$-1	$1	$3	$6

Current price: $5.94. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 21.5% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$7.75

Market Price

$5.94

Upside / Downside

+30.5%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Snap Inc. (SNAP) has a fair value of $7.75 based on 7 comparable companies in the Internet Content & Information industry.

EV/Revenue Valuation — Internet Content & Information

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Snap Inc.SNAP	10,219	2.3x	2.1x
Omnicom Group Inc.OMC	23,573	1.7x	1.2x
Twilio Inc.TWLO	19,942	4.0x	3.6x
TKO Group Holdings, Inc.TKO	15,549	4.0x	3.2x
Roku, Inc.ROKU	14,477	2.9x	2.5x
News CorporationNWSA	13,818	1.7x	1.6x
Zillow Group, Inc. Class CZ	10,086	3.8x	3.3x
JOYY, Inc. Sponsored ADR Class AJOYY	3,120	1.3x	0.2x
Industry Median		2.9x	2.5x
(*) Revenue		5,931	6,709
= Enterprise Value		17,231	16,779
(-) Net Debt		3,671	3,671
Equity Value		13,561	13,108
(/) Outstanding shares		1,720	1,720
Fair Price		$8	$8

Selected Fair Value (avg of trailing + forward)

$7.75

+30.5%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$0.02 – $66.37

$4.26

-9.7%

Revenue DCF 10Y

$0.53 – $83.90

$6.82

+44.4%

▸ Trading Multiples

EV/Revenue

$3.72 – $11.54

$7.76

+64.3%

DCF Analysis

Snap Inc. (SNAP) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$6.82

Market Price

$5.94

Upside / Downside

+14.8%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-9.0%

Target Operating Margin

10.4%

WACC

5.6%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.3%

Target CapEx/Rev

6.0%

D&A/Revenue

3.3%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	6,714	13.2%	-5.1%	-342	-342	224	(239)	294	-651	-634
2027	7,373	9.8%	-1.2%	-90	-90	246	(282)	142	-268	-247
2028	7,978	8.2%	2.7%	213	168	266	(327)	130	-24	-21
2029	8,611	7.9%	6.5%	564	445	287	(376)	136	219	181
2030	9,255	7.5%	10.4%	965	762	308	(430)	139	502	393
2031	10,039	8.5%	10.4%	1,046	827	334	(493)	169	499	369
2032	10,779	7.4%	10.4%	1,123	888	359	(559)	159	528	370
2033	11,455	6.3%	10.4%	1,194	943	381	(625)	146	554	368
2034	12,050	5.2%	10.4%	1,256	992	401	(690)	128	575	362
2035	12,543	4.1%	10.4%	1,307	1,033	418	(753)	106	592	352

Enterprise Value Bridge

Sum of PV(FCFF)1,493

Terminal Value (Gordon Growth at 3.0%)23,350

PV of Terminal Value13,903

Enterprise Value15,396

(–) Net Debt3,671

Equity Value11,725

(÷) Shares Outstanding1,720

Fair Value per Share$6.82

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.4%	7.4%	10.4%	13.4%	16.4%
3.6%	$-3	$19	$40	$62	$84
4.6%	$-3	$5	$13	$21	$29
5.6%	$-3	$2	$7	$12	$17
6.6%	$-3	$1	$4	$7	$11
7.6%	$-3	$-0	$2	$5	$8

Current price: $5.94. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 21.5% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$7.75

Market Price

$5.94

Upside / Downside

+30.5%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Snap Inc. (SNAP) has a fair value of $7.75 based on 7 comparable companies in the Internet Content & Information industry.

EV/Revenue Valuation — Internet Content & Information

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Snap Inc.SNAP	10,219	2.3x	2.1x
Omnicom Group Inc.OMC	23,573	1.7x	1.2x
Twilio Inc.TWLO	19,942	4.0x	3.6x
TKO Group Holdings, Inc.TKO	15,549	4.0x	3.2x
Roku, Inc.ROKU	14,477	2.9x	2.5x
News CorporationNWSA	13,818	1.7x	1.6x
Zillow Group, Inc. Class CZ	10,086	3.8x	3.3x
JOYY, Inc. Sponsored ADR Class AJOYY	3,120	1.3x	0.2x
Industry Median		2.9x	2.5x
(*) Revenue		5,931	6,709
= Enterprise Value		17,231	16,779
(-) Net Debt		3,671	3,671
Equity Value		13,561	13,108
(/) Outstanding shares		1,720	1,720
Fair Price		$8	$8

Selected Fair Value (avg of trailing + forward)

$7.75

+30.5%