u/Heineken_500ml ·
Reddit — r/ValueInvesting
· February 15, 2026 at 15:59
· ⬆ 111 pts
· 💬 113 comments
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Isn't RDDT super cheap?
I like to keep my calculations simple.
RDDT's diluted EPS in Q4 2025 was $1.24. This already includes SBC the biggest cost and dilution.
So about $5 a year.
The company increased EPS by over 200% in 2025. It grew organically and the growth came from advertising rather than a one time transaction. Revenue up 70% and the growth will slow down to 50% in 2026 (according to AI).
So at least 40% growth in 2026.
$5 with 40% growth is 1 year forward EPS of $7.
Assuming 10% growth for the next 10 years, EPS goes up to $15. Then assuming the company stays relevant for total 15 years with the last 5 years earning the same $15, that adds up to the company being worth like $185.
Imo these assumptions are conservative and my calc should be the floor price. There's almost no risk with 90% margin, no debt, low execution risk. For legal risk, I assessed the social media ban to have minimal impact.
Isn't this stock way too cheap right now?
I already own RDDT shares so I'm looking for some confirmation
Can anyone reasonably justify a lower valuation than this?