A Look at Snap’s Scale and Valuation
In this part of the series, we’ll look at some value-centric measures for Snap (SNAP), one of the major companies in the US Internet space.
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On April 11, 2017, Alphabet was the largest US Internet player, Facebook was the second-largest, and Alibaba was the third-largest by market capitalization. Snap’s market capitalization remained lower than Alibaba’s.
Snap’s valuation multiples
Price-based multiples take into account value from a shareholder’s perspective. Multiples based on EV (enterprise value) help investors understand the value of a company by its sources of capital from a shareholder’s point of view. These are forward multiples based on expected values after a year.
Snap’s enterprise value is $24,589, and Alphabet’s is $576,081. Facebook’s enterprise value is $407,603, while Twitter’s and Alibaba’s are $10,479 and $276,338, respectively.