# Reddit CDR (CAD Hedged) (RDDT.TO) fundamentals

Data as of 2026-11-04. TSX, Canada. Sector: Communication Services / Internet Media & Services. Price C$9.16, market value C$25.4 billion.

## Valuation
- **P/E (trailing): 19.9×** (5-yr avg 122.0×, 3-yr avg 122.0×). Reddit CDR (CAD Hedged) trades at 19.9× trailing earnings, well below its own five-year average of 122.0×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×.
- **Price / sales: 9.1×**. Each dollar of revenue is priced at 9.1×.
- **Price / book: 8.7×**. The shares trade at 8.7× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 28.6×**. Enterprise value is 28.6× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 4.0%** (5-yr avg 1.1%). Free cash flow equals 4.0% of the market value, above its five-year average of 1.1%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 5.0%**. The inverse of the P/E: 5.0% of the price is earned each year.

## Profitability
- **Gross margin: 91.4%**. Reddit CDR (CAD Hedged) keeps 91.4% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 28.2%**. 28.2% of revenue is left after running the business, an exceptional level.
- **Net margin: 24.1%**. 24.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 18.1%**. 18.1% on shareholders' equity is solid.
- **Return on invested capital: 163.8%**. Return on all capital, debt included, is 163.8%: comfortably above what that capital costs.
- **Return on assets: 26.9%**. Each dollar of assets produces 26.9% of profit.

## Growth
- **Revenue growth (1 yr): 69.4%** (3-yr 48.9%/yr). Revenue grew 69.4% over the last year.

## Financial health
- **Debt to equity: 0.01**. Debt is 0.01 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Reddit CDR (CAD Hedged) holds more cash than debt.
- **Current ratio: 11.56** (quick 11.56). Current assets cover the next year's liabilities 11.56 times.
- **Altman Z-score: 50.20**. A Z-score of 50.20 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Reddit CDR (CAD Hedged) does not currently pay a dividend.

## Price and momentum
- **Total return (1 yr): -54.2%** (YTD -60.9%, 3-mo -35.5%). The shares are down 54.2% over twelve months including dividends.
- **From 52-week high: -64.1%** (7.4% above the low). Trading 64% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 18**. An RSI of 18 is oversold; bounces are common, but oversold can stay oversold in a real decline.
- **Beta (1 yr): 1.92** (volatility 75%). Beta of 1.92 against the S&P/TSX Composite: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=RDDT.TO · Page: https://foliofundamentals.com/stocks/rddt.to

Not investment advice.