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

NASDAQ:APP • US03831W1080

Current stock price

439.92 USD
-2.65 (-0.6%)
At close:
438.51 USD
-1.41 (-0.32%)
Pre-Market:

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

  • In the past year APP was profitable.
  • APP had a positive operating cash flow in the past year.
  • Of the past 5 years APP 4 years were profitable.
  • Each year in the past 5 years APP had a positive operating cash flow.
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

  • APP's Return On Assets of 45.92% is amongst the best of the industry. APP outperforms 99.64% of its industry peers.
  • Looking at the Return On Equity, with a value of 156.15%, APP belongs to the top of the industry, outperforming 99.28% of the companies in the same industry.
  • APP has a better Return On Invested Capital (61.04%) than 99.28% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for APP is significantly above the industry average of 10.87%.
  • The last Return On Invested Capital (61.04%) for APP is above the 3 year average (35.79%), which is a sign of increasing profitability.
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

  • APP's Profit Margin of 57.41% is amongst the best of the industry. APP outperforms 96.03% of its industry peers.
  • APP has a better Operating Margin (71.73%) than 99.64% of its industry peers.
  • In the last couple of years the Operating Margin of APP has grown nicely.
  • Looking at the Gross Margin, with a value of 86.48%, APP belongs to the top of the industry, outperforming 93.14% 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

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so APP is creating value.
  • Compared to 1 year ago, APP has less shares outstanding
  • The number of shares outstanding for APP has been reduced compared to 5 years ago.
  • Compared to 1 year ago, APP has an improved debt to assets ratio.
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 20.91 indicates that APP is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 20.91, APP belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
  • APP has a debt to FCF ratio of 0.87. This is a very positive value and a sign of high solvency as it would only need 0.87 years to pay back of all of its debts.
  • APP has a better Debt to FCF ratio (0.87) than 76.90% of its industry peers.
  • APP has a Debt/Equity ratio of 1.65. This is a high value indicating a heavy dependency on external financing.
  • APP has a worse Debt to Equity ratio (1.65) than 80.51% 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 20.91
ROIC/WACC5.66
WACC10.78%
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

  • APP has a Current Ratio of 3.32. This indicates that APP is financially healthy and has no problem in meeting its short term obligations.
  • With a decent Current ratio value of 3.32, APP is doing good in the industry, outperforming 75.45% of the companies in the same industry.
  • APP has a Quick Ratio of 3.32. This indicates that APP is financially healthy and has no problem in meeting its short term obligations.
  • APP has a Quick ratio of 3.32. This is in the better half of the industry: APP outperforms 75.81% of its industry peers.
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

  • The Earnings Per Share has grown by an impressive 126.87% over the past year.
  • 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

  • APP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.09% yearly.
  • The Revenue is expected to grow by 24.40% on average over the next years. This is a very strong growth
EPS Next Y53.28%
EPS Next 2Y40.78%
EPS Next 3Y35.88%
EPS Next 5Y25.09%
Revenue Next Year40.4%
Revenue Next 2Y34.62%
Revenue Next 3Y31.68%
Revenue Next 5Y24.4%

3.3 Evolution

  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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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4

4. APP Valuation Analysis

4.1 Price/Earnings Ratio

  • APP is valuated quite expensively with a Price/Earnings ratio of 42.71.
  • The rest of the industry has a similar Price/Earnings ratio as APP.
  • Compared to an average S&P500 Price/Earnings ratio of 25.73, APP is valued quite expensively.
  • With a Price/Forward Earnings ratio of 27.86, APP can be considered very expensive at the moment.
  • APP's Price/Forward Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.72, APP is valued at the same level.
Industry RankSector Rank
PE 42.71
Fwd PE 27.86
APP Price Earnings VS Forward Price EarningsAPP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, APP is valued a bit cheaper than 63.54% of the companies in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as APP.
Industry RankSector Rank
P/FCF 36.95
EV/EBITDA 34.27
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)0.8
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

  • No dividends for APP!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

APP Fundamentals: All Metrics, Ratios and Statistics

APPLOVIN CORP-CLASS A

NASDAQ:APP (3/19/2026, 8:00:01 PM)

Premarket: 438.51 -1.41 (-0.32%)

439.92

-2.65 (-0.6%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners75.97%
Inst Owner Change0.1%
Ins Owners4.67%
Ins Owner Change-0.24%
Market Cap148.38B
Revenue(TTM)5.81B
Net Income(TTM)3.33B
Analysts81.76
Price Target683.67 (55.41%)
Short Float %5.54%
Short Ratio2.11
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)-8.56%
PT rev (3m)-6.99%
EPS NQ rev (1m)7.98%
EPS NQ rev (3m)7.83%
EPS NY rev (1m)7.23%
EPS NY rev (3m)7.04%
Revenue NQ rev (1m)4.22%
Revenue NQ rev (3m)4.65%
Revenue NY rev (1m)2.51%
Revenue NY rev (3m)2.8%
Valuation
Industry RankSector Rank
PE 42.71
Fwd PE 27.86
P/S 25.56
P/FCF 36.95
P/OCF 36.95
P/B 69.51
P/tB 749.49
EV/EBITDA 34.27
EPS(TTM)10.3
EY2.34%
EPS(NY)15.79
Fwd EY3.59%
FCF(TTM)11.91
FCFY2.71%
OCF(TTM)11.91
OCFY2.71%
SpS17.21
BVpS6.33
TBVpS0.59
PEG (NY)0.8
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 20.91
F-Score9
WACC10.78%
ROIC/WACC5.66
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 Year40.4%
Revenue Next 2Y34.62%
Revenue Next 3Y31.68%
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 4 / 10 to APPLOVIN CORP-CLASS A (APP). This can be considered as Fairly Valued.


How profitable is APPLOVIN CORP-CLASS A (APP) stock?

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


Can you provide the financial health for APP stock?

The financial health rating of APPLOVIN CORP-CLASS A (APP) is 8 / 10.


What is the earnings growth outlook for APPLOVIN CORP-CLASS A?

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