Internet Content & Information · NYSE
Current Price
$19.73
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Pinterest, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Pinterest, Inc. operates as a visual discovery engine in the United States and internationally. The company's engine allows people to find inspiration for their lives, including recipes, style and home inspiration, DIY, and others; and provides video, product, and idea pins. It shows visual machine learning recommendations based on pinners taste and interests. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.
ROIC (TTM)
5.9%
ROE (TTM)
8.7%
FCF Yield
9.40%
Based on trailing twelve-month data, PINS shows a free cash flow per share of N/A and a ROIC of 5.9%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 9.40% are important context metrics when evaluating PINS's stock valuation relative to peers.
The intrinsic value of PINS depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether PINS is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $19.73. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Pinterest, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Internet Content & Information industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting PINS's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Pinterest, Inc., this means projecting how much free cash flow the Internet Content & Information will produce over the next 5-10 years, then discounting those amounts to today's dollars. PINS's ROIC of 5.9% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For PINS, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
