Snap SNAP
United StatesCommunication Services · Internet Content & InformationUSD
7.40 USD (+27.4%)
35 analysts
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Snap Inc. operates Snapchat, a social media and multimedia messaging platform that generates revenue primarily through digital advertising targeted at a young audience.
Key points
from its scores- ✓Strong growth8.1
- ✓Very solid balance sheet7.2
- ✕Little or no dividend0.5
- ✕Little competitive advantage2.8
- ✕Poor share-price trend2.9
AI analysis
bottom line, main risk, context and newsHold pending sustained improvement in margins and profitability; revenue growth alone does not justify investment while ROE remains negative.
Snap shows solid financial health with net cash (Net Debt/EBITDA of -10.71) and 18.9% revenue growth, but its profitability is poor (ROE of -15.58%, operating margin of -2.64%) and the market value already discounts these weaknesses with a forward P/E of 7.49.
The main risk is the inability to convert revenue growth into profits: with an operating margin of -2.64% and an ROE of -15.58%, the company depends on an operational improvement that has not yet materialized.
Context and risks
No recent relevant news and no material exposure to current macro factors: the rise in long-term US rates and dollar strength do not directly affect a digital advertising business with net cash. The main risk is operational: negative margins and a business model in the investment phase.
Is Snap stock cheap or expensive?
at the analysis dateOn Price / sales, it trades 20% below the Communication Services median.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| Price / book | 5.1 | 2.3 | +119% |
| Price / sales | 1.5 | 1.9 | −20% |
Sector: median of the 102 Communication Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.0 out of 10 (median for Communication Services: 6.3).
Average analyst target: 7.40 USD, +27.4% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 7.2 (sector 6.6), Growth 8.1 (sector 5.4).
Classic formulas with standard assumptions (5.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Communication Services medianValuation
- Forward P/E
- 7.5
- EV / EBITDA
- −77.9
- Price / book
- 5.1
- Price / sales
- 1.5
- Market cap
- 9.8B USD
- Enterprise value
- 11.4B USD
Profitability
- ROE
- −15.6%
- ROA
- −2.7%
- ROIC (approx.)
- −2.7%
- Gross margin
- 57.3%
- Operating margin
- −2.6%
- Net margin
- −4.9%
- Free cash flow
- 714.3M USD
- FCF yield
- 7.3%
Solvency
- Total debt
- 4.2B USD
- Net debt
- 1.6B USD
- Cash
- 2.7B USD
- EBITDA
- −146.3M USD
- Net debt / EBITDA
- −10.71
- Debt / equity
- 219.28
- Current ratio
- 2.94
- Quick ratio
- 2.72
Growth
- Revenue growth
- +18.9%
- EPS (TTM)
- −0.18 USD
- EPS (forward)
- 0.78 USD
Dividend
- Dividend yield
- 0.0%
Risk and market
- Beta
- 1.08
- Analyst consensus
- Hold (35)
- Target price
- 7.40 USD
- 52-week range
- 3.81 – 9.13
Recent news
All SNAP news →Compare it with its sector
All 102 in Communication Services →Frequently asked questions about Snap
Is Snap stock cheap or expensive?
On Price / sales, it trades 20% below the Communication Services median. Valuation score: 5.0 out of 10 (median for Communication Services: 6.3). Average analyst target: 7.40 USD, +27.4% versus the price. This is not investment advice.
What score does Snap get on MeridIAn Screener?
It scores 5.1 out of 10, rank 1,669 of 2,130 (better than 21% of the companies analysed). Its strongest category is Growth (8.1) and its weakest, Dividend (0.5). Analysis of 08/10/2026.
How much is Snap worth on the stock market?
Its market capitalisation is 9.8B USD and its enterprise value, debt included, is 11.4B USD.
How much debt does Snap have?
Its net debt (debt minus cash) is 1.6B USD.
Does Snap pay a dividend?
It pays no dividend, or almost none.
How has Snap stock performed over the last year?
It has fallen 25.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 3.81 and 9.13 USD. Past performance does not guarantee future results.
What do analysts think of Snap?
35 analysts cover it; their average recommendation is “Hold” and their average target is 7.40 USD (+27.4% versus the price). It is an estimate, not market data.