One-glance verdict
Undervalued
$101.50 our estimate vs market $22.32
Wall Street consensus: $29.08 (-71.4% lower than our fair-value estimate)
78% below our estimate, below the bear case
Fundamentals snapshot
Pinterest, Inc.
PINS · NYQ · Communication Services · Internet Content & Information
Current price
$22.32
52-week range
$13.84 - $35.42
Market cap
$12.64B
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 146.3% above its 5-year average P/E.
- Risk Insider ownership is only 1.3% (peer median: 6.4%).
What this company does
Pinterest, Inc.
Pinterest is like a digital bulletin board where people find inspiration for things like recipes or home decor, and businesses can advertise to show up when users are looking for ideas. The money Pinterest makes mostly comes from these advertisers paying to show their ads, which is important because it's how the company funds its operations and continues to provide its service.
How the company got here
Pinterest started in 2008 as Cold Brew Labs Inc. and officially became Pinterest, Inc. in 2012. It was founded with the idea of creating a digital space where people could discover and save visual ideas, like recipes or home decor. This focus on visual discovery has been the core of its growth and evolution into the platform it is today.
What it actually does
Pinterest is a visual discovery engine where users can find inspiration for everything from cooking and fashion to home renovation and travel. Think of it like a giant digital bulletin board where people 'pin' images and ideas they like. Users can then search for specific topics, save these 'pins' to their own boards, and even shop for products directly from the images they find. The platform also offers advertising tools for businesses to reach users interested in their products.
Advertising
This is Pinterest's primary way of making money. Businesses pay to show their ads to users on the platform. These ads appear in various places, like search results or when a user is browsing related content. Pinterest uses an 'ad auction' system, where advertisers bid to have their ads shown at the right moments to users, aiming to achieve good results for the advertiser's business goals. This segment represents the vast majority of Pinterest's revenue.
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
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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
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Sources
Revenue
$1.15B
Net income
$1.85B
Diluted EPS
2.66
Operating cash flow
$254.00M
Free cash flow
$250.20M
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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 $101.50 vs current price $22.32
Wall Street consensus is the average analyst price target: $29.08 (-71.4% lower than our fair-value estimate).
Our most-likely fair value is $101.50 a share — about 354.8% above today's price of $22.32, 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 $506.95M 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 146.3% above its 5-year average P/E.
-
Insider ownership is only 1.3% (peer median: 6.4%).
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)
65.65x
Forward P/E
9.33x
P/B
4.36x
P/S
2.77x
EV/EBITDA
39.68x
PEG ratio
0.29x
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
0.0%
Payout ratio
0.0%
Last ex-div date
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