❉ Buffybot wonderful businesses, fair prices

← back

RDDT Reddit

entertainment · 2026-10-20

N/A
too hard · 67
Owner-earnings value$56.86
Price$155.14
Margin of safety -63.3%

Quality gate · 67/100

Returns on capital 28.4/30
Consistency 3.5/22
Margins / pricing power 15.8/16
Balance sheet 16.0/16
Cash conversion 3.3/10
Capital allocation 0/6

⚠ unprofitable in too many years

Median ROIC24.5%
Gross margin91.4%
Net debt / EBITDA-1.2x
Share count / yr+6.3%
Profitable years1/4

Moat & management

Owner-earnings inputs

Owner earnings (TTM)880.17M
Owner-earnings yield2.9%
Free-cash-flow yield3.4%
Growth used (normalized)10.0%
Market-implied growth (reverse DCF)25.0%
Terminal growth3.0%
Discount rate (hurdle)14.1%

Projected owner earnings

YrOwner earningsGrowthPV
1915.62M 10.0%802.22M
21.00B 9.2%767.68M
31.08B 8.4%729.40M
41.17B 7.7%688.06M
51.25B 6.9%644.37M
61.32B 6.1%599.07M
71.40B 5.3%552.86M
81.46B 4.6%506.46M
91.51B 3.8%460.49M
101.56B 3.0%415.56M

⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Net cash 0.9B credited to value (interest stripped from owner earnings to avoid double-counting). · Price pays for ~25%/yr owner-earnings growth over 10y (reverse DCF); model credits 10%.

History

DateQualityPriceValueMoSRating
2026-10-20 67 $155.14 $56.86 -63.3% N/A
2026-09-29 67 $143.08 $56.30 -60.7% N/A
2026-09-08 67 $154.46 $58.87 -61.9% N/A
2026-08-18 67 $164.50 $59.39 -63.9% N/A