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A Look at Snap’s Scale and Valuation

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Snap’s scale

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.

Let’s start with the sizes of the top four US Internet companies based on their market capitalizations. We’ll look at Alphabet (GOOG), Facebook (FB), Twitter (TWTR), and Alibaba (BABA).

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.

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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.

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