The Discounted Cash Flow (DCF) valuation of Snap Inc (SNAP) is (13.54) USD. With the latest stock price at 9.27 USD, the upside of Snap Inc based on DCF is -246.1%.

Is Snap a buy or a sell?

Based on the latest price of 9.27 USD and our DCF valuation, Snap Inc (SNAP) is a sell. Selling Snap stocks now will result in a potential gain of 246.1%.

Note: valuation result may not be accurate due to the company's negative earnings.

	Range	Selected
WACC / Discount Rate	5.9% - 8.5%	7.2%
Long-term Growth Rate	3.0% - 5.0%	4.0%
Fair Price	(40.28) - (8.97)	(13.54)
Upside	-534.5% - -196.8%	-246.1%

9.27 USD

Stock Price

(13.54) USD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

Snap DCF Valuation: Revenue & Expenses Forecast

(USD in millions)		Projections

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	5,361	6,030	6,783	7,469	8,275	9,041
% Growth	16%	12%	12%	10%	11%	9%

Cost of goods sold	(2,473)	(2,643)	(2,824)	(2,954)	(3,109)	(3,227)
% of Revenue	46%	44%	42%	40%	38%	36%

Selling, G&A expenses	(1,900)	(2,137)	(2,404)	(2,647)	(2,933)	(3,204)
% of Revenue	35%	35%	35%	35%	35%	35%

Research & Development	(1,553)	(1,747)	(1,965)	(2,164)	(2,397)	(2,619)
% of Revenue	29%	29%	29%	29%	29%	29%

Net interest & other expenses	(107)	(120)	(135)	(149)	(165)	(181)
% of Revenue	2%	2%	2%	2%	2%	2%

Tax expense	(26)	13	12	10	7	4
Tax rate	4%	2%	2%	2%	2%	2%

Net profit	(698)	(604)	(534)	(435)	(322)	(186)
% Margin	-13%	-10%	-8%	-6%	-4%	-2%