A strong performer from today's evening trading session is Snap, whose shares rose 2.2% to $14.14 per share. For those of you thinking about investing in the stock, here is a brief value analysis of the stock using the company's basic fundamental ratios.
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Snap Inc. operates as a technology company in North America, Europe, and internationally. The company belongs to the Technology sector, which has an average price to earnings (P/E) ratio of 35.0 and an average price to book (P/B) ratio of 7.92. In contrast, Snap has a trailing 12 month P/E ratio of -16.4 and a P/B ratio of 9.3.
Snap's PEG ratio is 7.36, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.
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Year 2018 2019 2020 2021 \
Revenue (MM) $1,180 $1,716 $2,507 $4,117
Gross Margins -107% -64% -34% -17%
Operating Margins -106% -60% -34% -12%
Net Margins -106% -60% -38% -12%
Net Income (MM) $-1,256 $-1,034 $-945 $-488
Net Interest Expense (MM) $4 $59 $97 $240
Depreciation & Amort. (MM) $92 $87 $87 $119
Earnings Per Share $-0.97 $-0.75 $-0.65 $-0.31
Year 2022 2023
Revenue (MM) $4,602 $4,545
Gross Margins -30% -32%
Operating Margins -30% -28%
Net Margins -31% -30%
Net Income (MM) $-1,430 $-1,363
Net Interest Expense (MM) $21 $22
Depreciation & Amort. (MM) $202 $165
Earnings Per Share $-0.89 $-0.87
