Internet Content & Information · NYSE
Current Price
$5.98
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Snap Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Snap Inc. operates as a camera company in North America, Europe, and internationally. The company offers Snapchat, a camera application with various functionalities, such as Camera, Communication, Snap Map, Stories, and Spotlight that enable people to communicate visually through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective; and advertising products, including AR ads and Snap ads comprises a single image or video ads, story ads, collection ads, dynamic ads, and commercials. 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.
ROIC (TTM)
-8.2%
ROE (TTM)
-20.7%
FCF Yield
4.33%
Based on trailing twelve-month data, SNAP shows a free cash flow per share of N/A and a ROIC of -8.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 4.33% are important context metrics when evaluating SNAP's stock valuation relative to peers.
The intrinsic value of SNAP 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 SNAP is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $5.98. 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 Snap 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 SNAP'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 Snap 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. SNAP's ROIC of -8.2% 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 SNAP, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
