Snap Inc. (SNAP) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Communication Services · Internet Content & Information
Is Snap Inc. a safe investment right now?
Snap Inc.'s Altman Z-Score of -0.3 places it in the distress zone. Fair value estimate is not available for this stock. Moat rating: 2.3/5 stars.
Could Snap Inc. go bankrupt? Altman Z-Score analysis
Z-Score of -0.3 falls below the 1.8 distress threshold, indicating significant financial stress.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives SNAP's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.4296 | 1.2 | 0.52 |
| B · Retained Earnings / Total Assets | RE / TA | -1.8165 | 1.4 | -2.54 |
| C · EBIT / Total Assets | EBIT / TA | -0.0429 | 3.3 | -0.14 |
| D · Market Cap / Total Liabilities | MCap / TL | 1.8278 | 0.6 | 1.1 |
| E · Revenue / Total Assets | Rev / TA | 0.7725 | 1.0 | 0.77 |
How has SNAP's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | -0.08 | Distress |
| 2023 | -0.37 | Distress |
| 2024 | -0.21 | Distress |
| 2025 | -0.3 | Distress |
Source: Calculated from SNAP's latest 10-K filing on SEC EDGAR.
What is Snap Inc. actually worth?
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Snap Inc. have a durable competitive advantage?
Moat rating: 2.3/5.
What makes up SNAP's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 2/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is SNAP's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | -21.8% | — |
| 2023 | -20.6% | Rising |
| 2024 | -10.7% | Rising |
| 2025 | -5.7% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is Snap Inc.'s dividend safe?
Snap Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $5.9B | $5.4B | $4.6B | Rising |
| Net Income | −$0.5B | −$0.7B | −$1.4B | Rising |
| Free Cash Flow | $0.4B | $0.2B | $0.1B | Rising |
| Gross Margin | 55.0% | 53.8% | 60.6% | Declining |
Recent events that affect our SNAP analysis
SNAP earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.09. Revenue estimate: $1.53B.
SNAP analyst consensus: 23% bullish (10 of 43 analysts)
3 Strong Buy, 7 Buy, 30 Hold, 1 Sell, 2 Strong Sell. Consensus target: $7.91 (35.4% upside).
SNAP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SNAP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SNAP beat EPS estimates by 189.1%
Reported EPS: $0.03 vs estimate $-0.03.
SNAP filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
SNAP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SNAP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SNAP beat EPS estimates by 50.6%
Reported EPS: $-0.06 vs estimate $-0.12.
SNAP filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SNAP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SNAP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SNAP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SNAP filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SNAP missed EPS estimates by 5.1%
Reported EPS: $-0.16 vs estimate $-0.15.
SNAP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SNAP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SNAP filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SNAP beat EPS estimates by 40.3%
Reported EPS: $-0.08 vs estimate $-0.13.
SNAP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SNAP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SNAP filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
SNAP beat EPS estimates by 126.6%
Reported EPS: $0.01 vs estimate $-0.04.
SNAP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Snap Inc.
What is Snap Inc. stock price today?
Snap Inc. (SNAP) stock price is $5.84 as of the latest market close, traded on the NYSE exchange.
What does Snap Inc. do?
Snap Inc. operates as a technology company in North America, Europe, and internationally. It offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and snaps.
What is Snap Inc. market cap?
Snap Inc. has a market capitalization of $9.86B, classifying it as a mid-cap stock in the Communication Services sector.
What sector and industry is SNAP in?
Snap Inc. operates in the Communication Services sector, specifically within the Internet Content & Information industry. It trades on the NYSE under the ticker symbol SNAP.
Is SNAP stock overvalued or undervalued?
We do not have sufficient earnings data to produce a reliable fair value estimate for Snap Inc. at this time. Stocks without stable earnings history are difficult to value using traditional models.
What is SNAP stock forecast and analyst target price?
Based on 36 Wall Street analysts, the consensus price target for Snap Inc. is $7.91, implying upside of 35.4% from the current price.
- Analyst High Target: $15.00
- Analyst Low Target: $4.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Snap Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Snap Inc.:
- Revenue growth (current year est.): 13.1%
- EPS growth (current year est.): 40.1%
- Revenue growth (next year est.): 9.2%
- EPS growth (next year est.): 80.6%
What are Snap Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $5.9B | Rising |
| Net Income | −$0.5B | Rising |
| Free Cash Flow | $0.4B | Rising |
| Gross Margin | 55.0% | Declining |
What is SNAP's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Forward P/E (next 12 months est.): 8.9x
How volatile is SNAP stock?
Snap Inc. has a beta of 0.91, meaning it is roughly in line with overall market volatility. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Snap Inc. have?
Snap Inc.'s balance sheet shows:
- Total Cash: $2.94B
- Total Debt: $4.14B
- Net Cash Position: $-1.20B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Snap Inc.'s free cash flow?
Snap Inc. generated $454.6M in trailing twelve-month free cash flow (from $656.2M in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Snap Inc. pay a dividend?
Snap Inc. does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is Snap Inc. at risk of going bankrupt?
Snap Inc.'s Altman Z-Score is -0.30, placing it in the distress zone (below 1.8) — elevated bankruptcy risk. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Snap Inc. have a durable competitive advantage?
Snap Inc. scores 2.3/5 stars (Weak moat) in our moat analysis:
- ROIC Stability: 2/5
- Gross Margin Trend: 2/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is SNAP's return on equity (ROE)?
Snap Inc.'s return on equity is -19.5%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy SNAP stock?
SNAP shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol SNAP
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is SNAP a value stock or speculative?
FairValueLabs classifies Snap Inc. as Value-Speculation. It has some value characteristics but carries elevated risk factors that make it speculative. Extra due diligence is recommended.
Who is the CEO of Snap Inc.?
The current CEO of Snap Inc. is Mr. Evan T. Spiegel.
What is SNAP's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $-0.27
- Forward EPS (next 12 months est.): $0.65
- Analyst consensus EPS (this year): $-0.16
- Analyst consensus EPS (next year): $-0.03
Other Communication Services companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
SNAP analysis methodology: How we calculate fair value, Z-Scores, and moat ratings