Complete PINS Stock Valuation Analysis
Comprehensive intrinsic value analysis using 5 different methodologies
PINS DCF Analysis
PINS (Pinterest, Inc.) discounted cash flow analysis with multiple scenarios, growth assumptions, and terminal value calculations
Financial Projections
| Metrics | 2022 (Historical) | 2023 (Historical) | 2024 (Historical) | 2025 (Projected) | 2026 (Projected) | 2027 (Projected) | 2028 (Projected) | 2029 (Projected) |
|---|---|---|---|---|---|---|---|---|
| Revenue | $2.8B | $3.1B | $3.6B | $4.3B | $5.0B | $5.7B | $6.4B | $7.1B |
| Revenue Growth % | - | 9.0% | 19.3% | 17.4% | 15.7% | 14.1% | 12.7% | 11.4% |
| EBIT | $-101.7M | $-125.7M | $179.8M | $214.1M | $247.6M | $282.5M | $318.4M | $354.8M |
| EBIT Margin % | -3.6% | -4.1% | 4.9% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% |
| Tax Rate % | 25.0% | 25.0% | 0.0% | 15.3% | 16.3% | 17.2% | 18.2% | 19.2% |
| NOPAT | $-76.3M | $-94.3M | $179.8M | $181.3M | $207.4M | $233.9M | $260.5M | $286.8M |
| NOPAT Margin % | -2.7% | -3.1% | 4.9% | 4.2% | 4.2% | 4.1% | 4.1% | 4.0% |
| Capex | $29.0M | $8.1M | $24.6M | $42.8M | $49.5M | $56.5M | $63.7M | $71.0M |
| Capex / Revenue % | 1.0% | 0.3% | 0.7% | 1.0% | 1.0% | 1.0% | 1.0% | 1.0% |
| Depreciation | $46.5M | $21.5M | $21.3M | $42.0M | $48.6M | $55.5M | $62.5M | $69.7M |
| D&A / Revenue % | 1.7% | 0.7% | 0.6% | 1.0% | 1.0% | 1.0% | 1.0% | 1.0% |
| Change in NWC | $152.4M | $-52.7M | $65.1M | $58.9M | $54.5M | $49.7M | $44.8M | $40.0M |
| NWC Change / Revenue % | 5.4% | -1.7% | 1.8% | 1.4% | 1.1% | 0.9% | 0.7% | 0.6% |
| Unlevered FCF | $-211.1M | $-28.1M | $111.4M | $121.7M | $152.0M | $183.1M | $214.5M | $245.5M |
| UFCF % Chg. | - | 86.7% | 495.8% | 9.3% | 24.9% | 20.5% | 17.1% | 14.5% |
| FCF / Revenue % | -7.5% | -0.9% | 3.1% | 2.8% | 3.1% | 3.2% | 3.4% | 3.5% |
| Discount Factor | - | - | - | 0.926 | 0.857 | 0.793 | 0.735 | 0.680 |
| Present Value of FCF | - | - | - | $112.7M | $130.3M | $145.3M | $157.6M | $167.0M |
| Sum of PV of UFCF | - | - | - | $112.7M | $243.0M | $388.3M | $545.8M | $712.8M |
WACC Calculation
Weighted Average Cost of Capital used for discounting cash flows.
| WACC Calculation | Value |
|---|---|
| Cost of Debt | 5.5% |
| Tax Rate | 15.3% |
| After Tax Cost of Debt | 4.6% |
| Risk Free Rate | 4.46% |
| Market Risk Premium | 4.3% |
| Beta | 0.83 |
| Cost of Equity | 8.0% |
| Total Debt | $185.8M |
| Market Cap | $22.4B |
| Total Capital | $22.6B |
| Debt Weighting | 0.8% |
| Equity Weighting | 99.2% |
| WACC | 8.0% |
Terminal Value
Choose between perpetuity growth or exit multiple methods.
| Terminal Value Calculation | Value |
|---|---|
| Terminal Growth Rate | 2.5% |
| Final Year FCF | $245.5M |
| Terminal Value | $4.6B |
| PV of Terminal Value | $3.1B |
| Cumulative PV of UFCF | $712.8M |
| Net Debt | $-950.7M |
| Equity Value | $4.8B |
| Shares Outstanding | 698.4M |
| Implied Share Price | $7 |
| Current Share Price | $33 |
| Implied Upside/(Downside) | -79.4% |
Valuation Summary
$6.82
Implied Price
$33.15
Current Price
-79.4%
Upside/Downside
8.0%
WACC
PINS Peer Valuation Analysis
Relative valuation based on comparable company trading multiples
Peer Valuation Analysis
Fair Value Range Analysis
Based on median multiples from 9 peer companies in Communication Services
P/E Ratio
$50.83
+53.3%
Peer Median: 18.5x
EV/EBITDA
$4.32
-87.0%
Peer Median: 13.6x
P/S Ratio
$33.15
+0.0%
Peer Median: 6.0x
Interpretation: Each multiple provides a different perspective on fair value. Consider which multiple is most relevant for PINS's business model and current situation.
Multiple Comparison
| Multiple | PINS Current | Peer Median | Peer Average | Premium/Discount | Assessment |
|---|---|---|---|---|---|
| P/E Ratio | 12.1x | 18.5x | 17.9x | -34.8% | Undervalued |
| EV/EBITDA | 99.8x | 13.6x | 14.6x | 635.3% | Overvalued |
| P/S Ratio | 6.0x | 6.0x | 7.6x | 0.0% | Fair Value |
Peer Companies
Click any company to view their valuation
| Company | Market Cap | P/E Ratio | EV/EBITDA | P/S Ratio |
|---|---|---|---|---|
| $2032.79B | 18.5x | 13.6x | 5.7x | |
| $1680.86B | 26.0x | 19.5x | 9.9x | |
| $22.43B | 12.1x | 99.8x | 6.0x | |
| $20.48B | 191.0x | 691.3x | 14.1x | |
| $14.01B | 0.0x | 0.0x | 2.5x | |
| $7.47B | 15.2x | 10.8x | 2.2x | |
| $4.83B | 0.0x | 0.0x | 1335.5x | |
| $4.60B | 0.0x | 89.1x | 12.7x | |
| $3.83B | 0.0x | 0.0x | 37.8x |
PINS Graham Number
Benjamin Graham's conservative valuation formula for defensive investors
Input Data
| EPS (TTM) | $2.75 | Latest 10-K |
| Book Value per Share | $6.80 | Latest 10-K Balance Sheet |
| Graham Constant | 22.5 | Benjamin Graham's formula |
Graham Number Result
$20.52
Intrinsic Value
$33.15
Current Price
-38.1%
Upside/Downside
Confidence: High
Conservative value investing approach
Calculation Breakdown
Formula:
√(22.5 × EPS × BVPS)
Step 1: Multiply constant by EPS
22.5 × 2.75 = 61.88
Step 2: Multiply by Book Value per Share
61.88 × 6.80 = 420.97
Step 3: Take square root
√420.97 = 20.52
Graham Number Result:
$20.52
PINS Graham Intrinsic Value
Growth-adjusted intrinsic value with two formula variants
Formula Selection
V = EPS × (8.5 + 2g)
Graham's original P/E shortcut for growth, no interest-rate adjustment
V = [EPS × (8.5 + 2g) × 4.4] / Y
Graham's 1974 refinement: adds rate-environment sensitivity
Active Formula: Base-Growth
2.75 × (8.5 + 2 × 77.5%)
Input Data & Growth Assumptions
Current EPS (TTM)$2.75
Latest 10-K • 2024-12-31T00:00:00
Historical 3Y77.5%
Financial statements
Custom
%
Enter a positive growth rate estimate (0-50%)
Graham Intrinsic Value Result
$449.62
Intrinsic Value
$33.15
Current Price
+1256.3%
Upside/Downside
Base Formula
Growth: 77.5%
PINS Peter Lynch Fair Value
Growth-based valuation using PEG ratio analysis for growth stocks
Fair Value Calculation
EPS (TTM)$2.75
Latest 10-K • 2024-12-31T00:00:00
Historical 3Y77.5%
3-year earnings growth
77.5%
1%50%
Fair Value Formula: EPS × Growth Rate
$2.75 × 77.5% = $213.12
$213.12
Fair Value
$33.15
Current Price
+542.9%
Upside/Downside
PEG Analysis
12.1x
Current P/E
77.5%
Growth Rate
0.16
PEG Ratio (P/E ÷ Growth Rate)
Significantly Undervalued
PEG Ratio Interpretation:
• PEG < 1.0: Undervalued (growth exceeds P/E)
• PEG = 1.0: Fairly valued (ideal Lynch ratio)
• PEG > 1.5: Overvalued (paying premium for growth)
Peter Lynch's Rule:
"The P/E ratio of any company that's fairly priced will equal its growth rate." A stock with 15% growth should trade at a P/E of 15 (PEG = 1.0).