No qualifying author-owned investment thesis was confirmed in this post.
The author is asking for opinions and performing a model exercise rather than expressing a personal investment judgment or conviction.
Comments7
▶ Full Post Text
Hey everyone, I’ve been looking at Reddit (RDDT) and ran a quick [DCF (check here)](https://www.insicard.com/start-analysis/RDDT.US?dr=10&rfr=3&pgr=2&tax=20&growth=300&margin=32) using assumptions that (at least to me) seem pretty generous:
**Inputs:**
* Growth: 30% over 10 years
* Operating margin: 32% in year 10
With these inputs, the model gives a fair value **below** the current price (so it looks overvalued).
Curious to hear how you’re thinking about it: **which assumption would you adjust to better match today’s valuation**—higher/longer growth, higher margins, or a lower discount rate?
And looking ahead, **where do you expect a DCF like this to be most fragile for RDDT**: growth durability, margin ceiling, reinvestment/FCF conversion, SBC & dilution, ad cycle / competition, or something else?