ABCDEFGHIJKLMNOPQRSTUVWXYZAAABACADAEAFAGAHAIAJAKALAMANAOAPAQ
1
2
Model Introduction
3
1
4
Key Inputs1
5
Units ($ in thousands)
6
Company nameReddit
7
Proposed tickerRDDT
8
SectorSocial Media
9
Valuation date3/18/2024
10
Stub period78.6%
11
Latest shares of outstanding178,869
12
Md-year conventionNo
13
Approach 1 or 22
14
Fiscal year end12/31/2023
15
First fiscal year end12/31/2024
16
Date of S-13/15/2024
17
Date of latest 10Q filing-
18
19
WACC Information
20
After tax cost of debt
Not used in this workbook
21
Cost of equity
Not used in this workbook
22
Weighted average cost of capital
Not used in this workbook
23
24
First year multiples
25
EV/EBITDA
26
EV/EBIT
27
EV/Revenue
28
29
Other assumptions
30
Effective tax rate of Reddit as of the latest filing
Not used in this workbook
31
Use growth or margins?
Not used in this workbook
Margins
32
33
34
Background and operations of Reddit:
35
Reddit is a social media platform that filed for its IPO in March of 2024. This is my analysis of the compay and
36
whether or not the offered range of $31-$34 per share is a fair price.
37
38
39
40
41
42
43
44
45
46
47
48
Case Manager
49
50
Active Case
Not used in this workbook
Base Case
51
52
53
Output:
54
Offered price range $ 34.00
55
DCF derived share price$28.08
56
Analysis Overvalued
57
58
Additional notes:
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100