One-glance verdict
Undervalued
$107.76 our estimate vs market $18.78
Wall Street consensus: $28.99 (-73.1% lower than our fair-value estimate)
83% below our estimate, below the bear case
Fundamentals snapshot
Pinterest, Inc.
PINS · NYQ · Communication Services · Internet Content & Information
Current price
$18.78
52-week range
$13.84 - $37.05
Market cap
$10.64B
Balance sheet
Healthy
21.03x Strong cushion
Net cash $78.27M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 7.9% last year.
- Reward Returns 6.5% on equity, ahead of 20% of its peers.
- Risk Stock trades 107.2% above its 5-year average P/E.
- Risk Insider ownership is only 1.3% (peer median: 6.3%).
What this company does
Pinterest, Inc.
Pinterest is like a digital scrapbook where people discover and save ideas, from recipes to home decor, using images and videos. The company makes almost all its money by selling targeted ads to businesses that want to reach people who are actively planning purchases. Pinterest's financial success depends on growing its user base and proving to advertisers that showing products on its platform leads to sales.
How the company got here
Pinterest was founded in 2009 by Ben Silbermann, Evan Sharp, and Paul Sciarra, growing out of an earlier, unsuccessful shopping app called Tote. Silbermann, an avid collector since childhood, wanted to create a digital space for people to collect and share things that inspire them. The platform launched in March 2010 as a digital pinboard, initially to a small, invitation-only group of users. A key turning point was the launch of its iPhone app in March 2011, which significantly boosted its growth, followed by being named one of TIME Magazine's "50 Best Websites of 2011." The company went public, meaning it started selling shares of the company to the public, in April 2019.
What it actually does
Pinterest is a visual discovery engine, like a digital version of a corkboard where you can "pin" ideas and interests. Users search for and save images and videos, called Pins, for inspiration on everything from recipes and home decor to fashion and travel. These Pins are organized into collections called boards, which can be kept private for personal planning or made public to share with others. Unlike many social media sites focused on sharing personal updates, people use Pinterest to find ideas, plan projects, and discover products they might want to buy.
Advertising
Pinterest makes almost all of its money—about 99%—from advertising. Businesses pay Pinterest to show their ads, called Promoted Pins, to users who are likely to be interested in their products. These ads look very similar to regular Pins and appear in users' feeds and search results, fitting in with the platform's visual style. Advertisers can target their ads based on what users are searching for and saving, which is effective because people often come to Pinterest with a high intent to make a purchase or start a project.
What management is betting on now
The company's main focus is on making the platform more "shoppable," turning the inspiration users find into actual purchases. This involves improving e-commerce (the buying and selling of goods online) features so people can buy products directly through Pins. A major part of this strategy is a heavy investment in artificial intelligence (AI), which is technology that allows computers to learn and make smart decisions. Pinterest is using AI to personalize the content and ads each user sees, essentially turning the platform into a smart shopping assistant that understands individual tastes and helps users discover new products.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$244.11M
FY2024 Q4
$250.20M
FY2025 Q1
$356.42M
FY2025 Q2
$196.68M
FY2025 Q3
$318.42M
FY2025 Q4
$380.37M
FY2026 Q1
$311.68M
FY2026 Q2
$269.93M
Revenue
$1.18B
Net income
$-46.67M
Diluted EPS
-0.08
Operating cash flow
$292.88M
Free cash flow
$269.93M
Fetching…
Sources
Revenue
$1.01B
Net income
$-73.59M
Diluted EPS
-0.12
Operating cash flow
$328.02M
Free cash flow
$311.68M
Fetching…
Sources
Revenue
$1.32B
Net income
$277.07M
Diluted EPS
0.41
Operating cash flow
$391.21M
Free cash flow
$380.37M
Fetching…
Sources
Revenue
$1.05B
Net income
$92.11M
Diluted EPS
0.13
Operating cash flow
$321.65M
Free cash flow
$318.42M
Fetching…
Sources
Revenue
$998.23M
Net income
$38.76M
Diluted EPS
0.06
Operating cash flow
$207.69M
Free cash flow
$196.68M
Fetching…
Sources
Revenue
$854.99M
Net income
$8.92M
Diluted EPS
0.01
Operating cash flow
$363.71M
Free cash flow
$356.42M
Fetching…
Sources
Revenue
$1.15B
Net income
$1.85B
Diluted EPS
2.66
Operating cash flow
$254.00M
Free cash flow
$250.20M
Fetching…
Sources
Revenue
$898.37M
Net income
$30.56M
Diluted EPS
0.04
Operating cash flow
$248.03M
Free cash flow
$244.11M
Fetching…
Sources
Is it cheap or expensive?
Fair value $107.76 vs current price $18.78
Wall Street consensus is the average analyst price target: $28.99 (-73.1% lower than our fair-value estimate).
Our most-likely fair value is $107.76 a share — about 473.8% above today's price of $18.78, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $78.3M - more cash than debt. Interest coverage 21.0x.
Net debt
$-78.27M
Interest coverage
21.03x
Pinterest, Inc.'s profit covers its interest bill about 21.0 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
PINS
BASELINE
Pinterest, Inc.
Total debt $1.20B Interest coverage 21.03x This is the baseline the peer rows are being compared against.
Total debt $4.23B Interest coverage -4.36x -100% vs PINS This peer has almost no interest-payment cushion compared with PINS.
Total debt $3.08B Interest coverage 19.88x -5% vs PINS Has roughly the same debt cushion as PINS.
Total debt $541.11M Interest coverage 70.90x +237% vs PINS Carries about 3.4x more debt cushion than PINS.
What you should know
The case for and against PINS
3 Rewards
2 Risks
Rewards
-
Revenue grew 7.9% last year.
-
Returns 6.5% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
-
Stock trades 107.2% above its 5-year average P/E.
-
Insider ownership is only 1.3% (peer median: 6.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
55.24x
Forward P/E
7.81x
P/B
3.67x
P/S
2.33x
EV/EBITDA
32.45x
PEG ratio
0.28x
Profitability
How much profit each dollar creates
Gross margin
79.5%
Operating margin
-3.5%
Net margin
5.5%
ROE
6.5%
ROA
3.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.41x
Current ratio
3.81x
Quick ratio
3.62x
Total debt
$1.20B
Total cash
$1.27B
Growth
How the business has been compounding
Revenue TTM
$4.56B
Revenue 5Y CAGR
13.1%
EPS TTM
0.34
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.33B
Free CF TTM
$1.25B
FCF margin
27.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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