Pinterest, Inc. (PINS) Stock Valuation — PE Analysis
Internet Content & Information · NYSE
Current Price
$20.21
PE Ratio (TTM)
38.5x
Intrinsic Value
$27.15
+25.6% margin of safety
COMPETITIVE MOAT
↑Visual Search Leadership
Pinterest's unique visual search engine is a powerful differentiator. It allows users to discover ideas and products through images, creating a distinct user experience.
↑Deep AWS Partnership
The $4 billion AWS deal for AI and cloud infrastructure strengthens Pinterest's technological capabilities. This ensures robust support for its visual search and AI-driven discovery features.
↑Engaged User Base
Pinterest cultivates a highly engaged user base focused on inspiration and planning. This dedicated community drives content creation and discovery, fostering network effects.
INVESTMENT RISKS
↓Competition for Ad Spend
Pinterest competes with larger platforms for advertising dollars. Maintaining ad revenue growth requires continuous innovation and user engagement against established players.
↓Reliance on Cloud Infrastructure
The significant AWS commitment highlights dependence on a single cloud provider. Any disruptions or price changes from AWS could impact operations and costs.
↓Monetization Challenges
Effectively translating user inspiration into direct purchases remains a challenge. Balancing user experience with monetization strategies is crucial for sustained revenue.
Base case
PINS base case PE valuation
A base case PE valuation for PINS estimates a fair value of about $27.15 per share, against a current price of $20.21. The model assumes 14.1% annual earnings growth, a 38x target PE multiple, and a 10% discount rate.
Intrinsic Value
$27.15
Margin of safety
+25.6%
Expected annual return
+6.1%
Base case assumptions: 14.1% annual earnings growth, 38x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the PINS PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Pinterest, Inc. respond.
Open PE Calculator for PINSCompany Overview
Pinterest, Inc. functions globally as a platform dedicated to visual discovery. Its core purpose is to empower individuals to unearth inspiration for various aspects of their lives, encompassing everything from culinary creations and personal style to home decor and do-it-yourself ventures. The platform facilitates this through diverse content formats, including video, product, and concept-based "Pins." Leveraging sophisticated visual machine learning, Pinterest provides personalized recommendations tailored to each user's unique preferences and interests. Established in 2008, the company was initially known as Cold Brew Labs Inc. before officially changing its name to Pinterest, Inc. in April 2012. Its corporate headquarters are located in San Francisco, California.
Financial Metrics — PINS PE Stock Valuation Data
PE Ratio (TTM)
38.5x
PEG Ratio
n/m
Earnings Yield
2.60%
ROE (TTM)
7.8%
Revenue/Share (TTM)
$6.87
Debt/Equity
0.42x
Frequently Asked Questions
What is the PE ratio of PINS?
The trailing twelve-month PE ratio of PINS reflects how much investors pay per dollar of Pinterest, Inc.'s earnings. This metric is most useful when compared to Internet Content & Information peers and the company's own historical range.
Is PINS overvalued based on PE ratio?
PINS's PE of 38.5x combined with a PEG ratio of -0.47 provides a growth-adjusted perspective. PINS has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Internet Content & Information, a DCF analysis may be more appropriate.
How do I value PINS stock using PE ratio?
To value Pinterest, Inc. using PE: (1) Compare the current PE (38.5x) against the Internet Content & Information median to assess relative pricing, (2) check the PEG ratio (-0.47) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of PINS?
PINS's PEG ratio is -0.47, calculated by dividing the PE ratio (38.5x) by the expected earnings growth rate. Because PINS has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for PINS stock valuation?
PE ratio gives a quick relative read — how PINS is priced versus Internet Content & Information peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See PINS DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Communication Services valuationsP/E and DCF value PINS with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.