Reddit, Inc. cash flow to debt ratio of 2.98K% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Reddit, Inc.'s free cash flow has increased 217.01% from $215.82M last year to $684.17M, signaling increasing performance

Reddit, Inc.'s debt to equity ratio is 0.01, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.

Reddit, Inc.'s debt has decreased relative to shareholder equity from 0.01 last year to 0.01 today, signaling strengthened financials

Reddit, Inc. has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Interest expense is not separately reported in Reddit, Inc.'s latest filing, so interest coverage cannot be calculated.

Reddit, Inc.'s profit margin has increased (-176.80%) in the last year from -37.25% to 28.60%, signaling increasing performance

Reddit, Inc.'s short-term assets of $3.14G exceed its short-term liabilities of $271.28M

Reddit, Inc.'s return on assets of 20.31% is higher than the 5.00% threshold, indicating efficient asset utilization

Reddit, Inc.'s return on equity of 25.48%, is higher than 15.00%, indicating good performance

Reddit, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Reddit, Inc. had positive net income in only 1.00 out of 5 years, indicating unstable earnings

Reddit, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Reddit, Inc. has a free cash flow yield of 1.75%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Reddit, Inc.'s yearly earnings has increased -209.38% since last year from $-484.28M to $529.72M, signaling increasing performance

Reddit, Inc.'s yearly revenue has increased 69.40% since last year from $1.30G to $2.20G, signaling increasing performance

ROIC 19.19% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Reddit, Inc.'s 3-year revenue CAGR of 48.93% is positive, indicating growing revenue over the past 3 years

Reddit, Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance

Reddit, Inc. had positive ROE in only 1.00 out of 5 years, indicating inconsistent returns on equity

Reddit, Inc. has insufficient data to evaluate this check.

Reddit, Inc. has an earnings yield of 1.82%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Reddit, Inc. is overvalued relative to its fair value price of 21.65 based on EBITDA multiple model

Reddit, Inc. has an EV/EBITDA ratio of 70.14x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Reddit, Inc. is overvalued relative to its fair value price of -54.47 based on Earnings Fair Value model

Reddit, Inc. has a PEG-ratio under 1 which is considered undervalued

Reddit, Inc. has a price-to-book ratio of 12.24x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Reddit, Inc. has a price-to-sales ratio of 15.74x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue