APPLOVIN CORP-CLASS A (APP) Fundamental Analysis & Valuation

NASDAQ:APP • US03831W1080

Current stock price

386.37 USD
-1.47 (-0.38%)
At close:
386.74 USD
+0.37 (+0.1%)
After Hours:

This APP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. APP Profitability Analysis

1.1 Basic Checks

  • APP had positive earnings in the past year.
  • In the past year APP had a positive cash flow from operations.
  • APP had positive earnings in 4 of the past 5 years.
  • APP had a positive operating cash flow in each of the past 5 years.
APP Yearly Net Income VS EBIT VS OCF VS FCFAPP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 45.92%, APP belongs to the top of the industry, outperforming 99.64% of the companies in the same industry.
  • With an excellent Return On Equity value of 156.15%, APP belongs to the best of the industry, outperforming 99.27% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 61.04%, APP belongs to the top of the industry, outperforming 99.27% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for APP is significantly above the industry average of 10.92%.
  • The 3 year average ROIC (35.79%) for APP is below the current ROIC(61.04%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 45.92%
ROE 156.15%
ROIC 61.04%
ROA(3y)26.47%
ROA(5y)15.33%
ROE(3y)109.7%
ROE(5y)64.09%
ROIC(3y)35.79%
ROIC(5y)22.21%
APP Yearly ROA, ROE, ROICAPP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 2025 0 50 100 150

1.3 Margins

  • With an excellent Profit Margin value of 57.41%, APP belongs to the best of the industry, outperforming 96.36% of the companies in the same industry.
  • APP has a Operating Margin of 71.73%. This is amongst the best in the industry. APP outperforms 99.64% of its industry peers.
  • In the last couple of years the Operating Margin of APP has grown nicely.
  • With an excellent Gross Margin value of 86.48%, APP belongs to the best of the industry, outperforming 93.09% of the companies in the same industry.
  • APP's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 71.73%
PM (TTM) 57.41%
GM 86.48%
OM growth 3Y198.66%
OM growth 5Y121.48%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y13.59%
GM growth 5Y7.32%
APP Yearly Profit, Operating, Gross MarginsAPP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50

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8

2. APP Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), APP is creating value.
  • APP has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, APP has less shares outstanding
  • The debt/assets ratio for APP has been reduced compared to a year ago.
APP Yearly Shares OutstandingAPP Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
APP Yearly Total Debt VS Total AssetsAPP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • An Altman-Z score of 18.85 indicates that APP is not in any danger for bankruptcy at the moment.
  • APP's Altman-Z score of 18.85 is amongst the best of the industry. APP outperforms 96.36% of its industry peers.
  • The Debt to FCF ratio of APP is 0.87, which is an excellent value as it means it would take APP, only 0.87 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.87, APP is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
  • APP has a Debt/Equity ratio of 1.65. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of APP (1.65) is worse than 80.00% of its industry peers.
  • Although APP's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 1.65
Debt/FCF 0.87
Altman-Z 18.85
ROIC/WACC5.56
WACC10.98%
APP Yearly LT Debt VS Equity VS FCFAPP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 3.32 indicates that APP has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 3.32, APP is in the better half of the industry, outperforming 76.73% of the companies in the same industry.
  • A Quick Ratio of 3.32 indicates that APP has no problem at all paying its short term obligations.
  • With a decent Quick ratio value of 3.32, APP is doing good in the industry, outperforming 77.09% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.32
Quick Ratio 3.32
APP Yearly Current Assets VS Current LiabilitesAPP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. APP Growth Analysis

3.1 Past

  • APP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 126.87%, which is quite impressive.
  • Looking at the last year, APP shows a very strong growth in Revenue. The Revenue has grown by 45.98%.
  • The Revenue has been growing by 30.45% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)126.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%87.28%
Revenue 1Y (TTM)45.98%
Revenue growth 3Y24.84%
Revenue growth 5Y30.45%
Sales Q2Q%20.77%

3.2 Future

  • The Earnings Per Share is expected to grow by 25.09% on average over the next years. This is a very strong growth
  • APP is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.40% yearly.
EPS Next Y53.28%
EPS Next 2Y40.78%
EPS Next 3Y35.88%
EPS Next 5Y25.09%
Revenue Next Year40.23%
Revenue Next 2Y34.53%
Revenue Next 3Y31.14%
Revenue Next 5Y24.4%

3.3 Evolution

  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
APP Yearly Revenue VS EstimatesAPP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 10B 20B 30B
APP Yearly EPS VS EstimatesAPP Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 0 10 20 30 40

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5

4. APP Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 37.51, which means the current valuation is very expensive for APP.
  • The rest of the industry has a similar Price/Earnings ratio as APP.
  • APP is valuated rather expensively when we compare the Price/Earnings ratio to 25.60, which is the current average of the S&P500 Index.
  • APP is valuated rather expensively with a Price/Forward Earnings ratio of 24.47.
  • APP's Price/Forward Earnings ratio is in line with the industry average.
  • APP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.84.
Industry RankSector Rank
PE 37.51
Fwd PE 24.47
APP Price Earnings VS Forward Price EarningsAPP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APP indicates a somewhat cheap valuation: APP is cheaper than 64.73% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, APP is valued a bit cheaper than 60.73% of the companies in the same industry.
Industry RankSector Rank
P/FCF 32.45
EV/EBITDA 30.24
APP Per share dataAPP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • APP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent profitability rating of APP may justify a higher PE ratio.
  • APP's earnings are expected to grow with 35.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)N/A
EPS Next 2Y40.78%
EPS Next 3Y35.88%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. APP Dividend Analysis

5.1 Amount

  • APP does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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APP Fundamentals: All Metrics, Ratios and Statistics

APPLOVIN CORP-CLASS A

NASDAQ:APP (4/2/2026, 7:09:26 PM)

After market: 386.74 +0.37 (+0.1%)

386.37

-1.47 (-0.38%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners75.97%
Inst Owner Change0.11%
Ins Owners4.67%
Ins Owner Change-0.61%
Market Cap130.31B
Revenue(TTM)5.81B
Net Income(TTM)3.33B
Analysts81.76
Price Target666.36 (72.47%)
Short Float %5.26%
Short Ratio2.01
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.26%
Min EPS beat(2)1.04%
Max EPS beat(2)9.47%
EPS beat(4)4
Avg EPS beat(4)19.65%
Min EPS beat(4)1.04%
Max EPS beat(4)51.45%
EPS beat(8)8
Avg EPS beat(8)22.96%
EPS beat(12)11
Avg EPS beat(12)26.7%
EPS beat(16)11
Avg EPS beat(16)-59.14%
Revenue beat(2)2
Avg Revenue beat(2)3.08%
Min Revenue beat(2)2.47%
Max Revenue beat(2)3.69%
Revenue beat(4)3
Avg Revenue beat(4)2.63%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)6.23%
Revenue beat(8)6
Avg Revenue beat(8)3.66%
Revenue beat(12)10
Avg Revenue beat(12)3.58%
Revenue beat(16)11
Avg Revenue beat(16)1.03%
PT rev (1m)-2.53%
PT rev (3m)-10.02%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)7.83%
EPS NY rev (1m)7.23%
EPS NY rev (3m)7.03%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)4.52%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)2.28%
Valuation
Industry RankSector Rank
PE 37.51
Fwd PE 24.47
P/S 22.45
P/FCF 32.45
P/OCF 32.45
P/B 61.05
P/tB 658.25
EV/EBITDA 30.24
EPS(TTM)10.3
EY2.67%
EPS(NY)15.79
Fwd EY4.09%
FCF(TTM)11.91
FCFY3.08%
OCF(TTM)11.91
OCFY3.08%
SpS17.21
BVpS6.33
TBVpS0.59
PEG (NY)0.7
PEG (5Y)N/A
Graham Number38.3
Profitability
Industry RankSector Rank
ROA 45.92%
ROE 156.15%
ROCE 70.27%
ROIC 61.04%
ROICexc 105.18%
ROICexgc 240.8%
OM 71.73%
PM (TTM) 57.41%
GM 86.48%
FCFM 69.16%
ROA(3y)26.47%
ROA(5y)15.33%
ROE(3y)109.7%
ROE(5y)64.09%
ROIC(3y)35.79%
ROIC(5y)22.21%
ROICexc(3y)53.06%
ROICexc(5y)32.82%
ROICexgc(3y)143.35%
ROICexgc(5y)89.93%
ROCE(3y)41.23%
ROCE(5y)25.58%
ROICexgc growth 3Y189.37%
ROICexgc growth 5YN/A
ROICexc growth 3Y298.66%
ROICexc growth 5Y136.27%
OM growth 3Y198.66%
OM growth 5Y121.48%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y13.59%
GM growth 5Y7.32%
F-Score9
Asset Turnover0.8
Health
Industry RankSector Rank
Debt/Equity 1.65
Debt/FCF 0.87
Debt/EBITDA 0.81
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 92.12%
Profit Quality 120.47%
Current Ratio 3.32
Quick Ratio 3.32
Altman-Z 18.85
F-Score9
WACC10.98%
ROIC/WACC5.56
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)183.71%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)126.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%87.28%
EPS Next Y53.28%
EPS Next 2Y40.78%
EPS Next 3Y35.88%
EPS Next 5Y25.09%
Revenue 1Y (TTM)45.98%
Revenue growth 3Y24.84%
Revenue growth 5Y30.45%
Sales Q2Q%20.77%
Revenue Next Year40.23%
Revenue Next 2Y34.53%
Revenue Next 3Y31.14%
Revenue Next 5Y24.4%
EBIT growth 1Y123.14%
EBIT growth 3Y272.84%
EBIT growth 5Y188.9%
EBIT Next Year68.02%
EBIT Next 3Y39.79%
EBIT Next 5Y29.71%
FCF growth 1Y91.74%
FCF growth 3Y114.62%
FCF growth 5Y78.82%
OCF growth 1Y91.3%
OCF growth 3Y113.47%
OCF growth 5Y78.29%

APPLOVIN CORP-CLASS A / APP Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for APPLOVIN CORP-CLASS A?

ChartMill assigns a fundamental rating of 7 / 10 to APP.


What is the valuation status of APPLOVIN CORP-CLASS A (APP) stock?

ChartMill assigns a valuation rating of 5 / 10 to APPLOVIN CORP-CLASS A (APP). This can be considered as Fairly Valued.


Can you provide the profitability details for APPLOVIN CORP-CLASS A?

APPLOVIN CORP-CLASS A (APP) has a profitability rating of 9 / 10.


What is the valuation of APPLOVIN CORP-CLASS A based on its PE and PB ratios?

The Price/Earnings (PE) ratio for APPLOVIN CORP-CLASS A (APP) is 37.51 and the Price/Book (PB) ratio is 61.05.


Can you provide the expected EPS growth for APP stock?

The Earnings per Share (EPS) of APPLOVIN CORP-CLASS A (APP) is expected to grow by 53.28% in the next year.