Applovin Valuation Methods and Financial Analysis

Applovin's valuation is a complex process that involves several methods to determine its worth.

Applovin's market capitalization is around $70 billion, which is a significant indicator of its valuation.

The company's revenue growth rate is substantial, with a 50% increase in 2020 compared to the previous year.

Applovin's financial health is strong, with a net income margin of 25%.

Its valuation methods include the discounted cash flow (DCF) model, which estimates the present value of future cash flows.

AppLovin's income statement reveals a significant revenue of $5.74 billion in the last 12 months, with a net income of $2.43 billion. This translates to earnings per share of $7.03.

AppLovin's cash position is a concern, with a net cash position of -$2.32 billion, which works out to -$6.85 per share. This is largely due to a significant debt of $3.51 billion.

Here's a breakdown of AppLovin's balance sheet:

The income statement is a crucial financial statement that provides a snapshot of a company's financial performance over a specific period. It's like a report card for the company's revenue and expenses.

AppLovin's income statement shows that they had revenue of $5.74 billion in the last 12 months. This is a significant amount of money, and it's likely that the company's revenue streams are diverse and robust.

The income statement also reveals that AppLovin earned $2.43 billion in profits, which is a substantial amount compared to their revenue. This suggests that the company is able to maintain a healthy profit margin.

Earnings per share (EPS) is another important metric that the income statement provides. AppLovin's EPS was $7.03, which indicates that the company's profits are being distributed evenly among its shareholders.

Here's a breakdown of AppLovin's income statement:

It's worth noting that AppLovin's income statement does not reflect any record of stock splits, which means that the company's stock price has remained consistent over time.

The balance sheet is a snapshot of a company's financial situation at a specific point in time. It provides a comprehensive overview of a company's assets, liabilities, and equity.

A company's assets can be categorized into current and non-current assets. Current assets are those that can be converted into cash within one year or less, while non-current assets are long-term investments. AppLovin, for example, has $3 billion in current assets, which includes $1.2 billion in cash and short-term investments.

Cash and cash equivalents are a crucial part of a company's balance sheet, as they represent the company's ability to meet its short-term obligations. AppLovin has $1.2 billion in cash and short-term investments, which is a significant portion of its current assets.

Here's a breakdown of AppLovin's current assets:

A company's liabilities can also be categorized into current and non-current liabilities. Current liabilities are those that are due within one year or less, while non-current liabilities are long-term debts. AppLovin has $1.1 billion in current liabilities, which includes $553.7 million in accounts payable.

Here's a breakdown of AppLovin's current liabilities:

The net cash position is the difference between a company's cash and cash equivalents and its total debt. AppLovin has a net cash position of -$2.32 billion, which means it has more debt than cash and cash equivalents.

Applovin Corp's Profitability Score is a notable 82/100, indicating a relatively high level of profitability.

Their gross margin is a robust 78.61%, while operating and profit margins are 50.96% and 42.34% respectively, suggesting a solid foundation for their business.

The company's profitability is reflected in their ability to maintain a high gross margin, which is a key indicator of a company's pricing power and efficiency.

Here's a breakdown of Applovin Corp's margins:

Applovin Corp's solvency score, on the other hand, is a more modest 59/100, indicating some concerns about their ability to meet their financial obligations.

Their shareholder yield is not specified in the available data.

The stock price of AppLovin has seen significant growth in the past year, increasing by a whopping +426.39% in the last 52 weeks. This is a substantial rise, outpacing the market average.

The beta of AppLovin's stock price has been higher than the market average, standing at 2.53. This indicates that the company's price volatility has been higher than the overall market.

The 50-Day and 200-Day Moving Averages are 505.91 and 378.45, respectively. These moving averages can help us gauge the stock's short-term and long-term trends.

The Relative Strength Index (RSI) of AppLovin's stock is 73.69, which is a neutral reading. This suggests that the stock is not overbought or oversold.

The Average Volume of AppLovin's stock over the past 20 days has been 11,115,279. This is a significant trading volume, indicating a high level of market interest in the stock.

Here's a summary of AppLovin's stock performance:

Analysts have a consensus rating of "Buy" for AppLovin, indicating a positive outlook on the company's future performance.

The average price target for AppLovin is $568.05, which is -17.34% lower than the current price.

Analysts have been consistently increasing their price targets over the past year, with a high forecast of $850.5 and a low forecast of $252.5.

According to the analyst 12-month forecast, the average 1-year price target for AppLovin is $594.77.

Here is a breakdown of the analyst 12-month forecast:

AppLovin is covered by 44 analysts, with 24 of them submitting estimates of revenue or earnings used as inputs to our report.

Analysts' submissions are updated throughout the day, providing a dynamic and up-to-date view of the company's performance.

The EV/EBITDA ratio of Applovin Corp's stock is 70.10.

This ratio suggests that the company is being valued at a premium compared to its earnings. In fact, the stock's EV/FCF ratio is even higher, at 83.06.

This means that investors are willing to pay a significant amount for the company's future cash flows.

The intrinsic value of one Applovin Corp stock under the Base Case scenario is 291.49 USD.

This is significantly lower than the current market price of 682.76 USD, indicating that the stock is overvalued by 57%.

Here are the valuation ratios mentioned in the article, for easy reference:

The average 1-year price target for Applovin Corp is 594.77 USD.

This estimate is based on Wall Street analysts' forecasts, which range from a low of 252.5 USD to a high of 850.5 USD.

Applovin stock has gained 7% year to date, outperforming the industry's 4% rally.

The Zacks Consensus Estimate for APP's earnings has been on the rise over the past 30 days.

Currently, APP stock carries a Zacks Rank #1 (Strong Buy).

Applovin Corp's profitability score is 82/100, which is a strong indication of the company's financial health.

The company's market capitalization is a significant factor in its profitability, but we don't have the exact figure from the article.

Applovin Corp's intrinsic valuation is also an important aspect of its profitability, but the article doesn't provide a clear figure.

The higher the profitability score, the more profitable the company is, so a score of 82/100 is a good sign.

Applovin Corp's stock has gained 7% year to date, outperforming the industry's 4% rally, which suggests a positive trend in the company's financial performance.

The Zacks Consensus Estimate for Applovin Corp's earnings has been on the rise over the past 30 days, indicating a growing confidence in the company's financial prospects.

Applovin Corp currently carries a Zacks Rank #1 (Strong Buy), which is a testament to the company's strong financial performance and growth potential.

Applovin Corp has an average 1-year price target of $594.77 USD, with a low forecast of $252.5 USD and a high forecast of $850.5 USD.

The average 1-year price target has increased over time, with a 10.13% increase from the current price target of $613.59 USD.

The dispersion of the price targets has also changed, with a 27.32% dispersion in the current price target, compared to 17.86% in September 2026.

The high and low price targets have remained relatively stable, with a high of $860.00 and a low of $250.00.

Here is a summary of the average 1-year price targets for Applovin Corp:

AppLovin has acquired MoPub, a leading mobile advertising exchange, for $1.4 billion. This acquisition will help AppLovin expand its mobile advertising capabilities.

AppLovin's SDK has been used by over 200,000 apps, including popular titles like Clash of Clans and Candy Crush Saga. Its user-friendly interface makes it easy for developers to integrate and manage their mobile ad campaigns.

The acquisition of MoPub will enable AppLovin to offer a more comprehensive mobile ad platform to developers and brands. This will help them reach a wider audience and increase their revenue.

AppLovin's ad platform is designed to be highly scalable, allowing it to handle large volumes of ad requests. This is evident in its ability to process over 10 billion ad requests per day.

Here's an interesting read: Applovin Acquisition

Applovin is a software-based platform for advertisers to enhance the marketing and monetization of their content. It has high growth potential with a solid track record.

The company's profitability score is 82/100, indicating that it is quite profitable. This is a significant advantage for investors.

Applovin's solvency score is 59/100, which means it has some concerns about being able to pay its debts. However, this score is still relatively high.

The stock has gained 7% year to date, outperforming the industry's 4% rally. This is a positive sign for investors.

The Zacks Consensus Estimate for Applovin's earnings has been on the rise over the past 30 days. This indicates that analysts are becoming more optimistic about the company's future performance.

Here's a summary of the average 1-year price targets for Applovin:

Note that the dispersion of the price targets is relatively high, indicating a wide range of opinions among analysts.