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

NASDAQ:APP • US03831W1080

Current stock price

391.235 USD
-6.76 (-1.7%)
Last:

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.
  • In the past year APP had a positive cash flow from operations.
  • Of the past 5 years APP 4 years were profitable.
  • 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

  • The Return On Assets of APP (45.92%) is better than 99.64% of its industry peers.
  • The Return On Equity of APP (156.15%) is better than 99.27% of its industry peers.
  • APP has a Return On Invested Capital of 61.04%. This is amongst the best in the industry. APP outperforms 99.27% 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 10.92%.
  • 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 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.
  • The Gross Margin of APP (86.48%) is better than 93.09% of its industry peers.
  • 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.
  • The number of shares outstanding for APP has been reduced compared to 1 year ago.
  • The number of shares outstanding for APP has been reduced compared to 5 years ago.
  • 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

  • APP has an Altman-Z score of 19.26. This indicates that APP is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of APP (19.26) is better than 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.
  • With a decent Debt to FCF ratio value of 0.87, APP is doing good in the industry, outperforming 76.00% of the companies in the same industry.
  • A Debt/Equity ratio of 1.65 is on the high side and indicates that APP has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 1.65, APP is doing worse than 80.00% of the companies in the same industry.
  • 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 19.26
ROIC/WACC5.56
WACC10.97%
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.
  • APP's Current ratio of 3.32 is fine compared to the rest of the industry. APP outperforms 76.73% of its industry peers.
  • A Quick Ratio of 3.32 indicates that APP has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 3.32, APP is in the better half of 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

  • The Earnings Per Share has grown by an impressive 126.87% over the past year.
  • The Revenue has grown by 45.98% in the past year. This is a very strong growth!
  • APP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.45% yearly.
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

  • Based on estimates for the next years, APP will show a very strong growth in Earnings Per Share. The EPS will grow by 25.09% on average per year.
  • 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 Year40.23%
Revenue Next 2Y34.53%
Revenue Next 3Y31.14%
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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5

4. APP Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 37.98, the valuation of APP can be described as expensive.
  • APP's Price/Earnings ratio is in line with the industry average.
  • APP's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.35.
  • The Price/Forward Earnings ratio is 24.78, which indicates a rather expensive current valuation of APP.
  • APP's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.61, APP is valued at the same level.
Industry RankSector Rank
PE 37.98
Fwd PE 24.78
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.
  • 60.73% of the companies in the same industry are more expensive than APP, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 32.86
EV/EBITDA 31.03
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.
  • APP has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as APP's earnings are expected to grow with 35.88% in the coming years.
PEG (NY)0.71
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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Find the best dividend stocksShow peers with best dividend

APP Fundamentals: All Metrics, Ratios and Statistics

APPLOVIN CORP-CLASS A

NASDAQ:APP (4/1/2026, 10:12:04 AM)

391.235

-6.76 (-1.7%)

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 Cap131.96B
Revenue(TTM)5.81B
Net Income(TTM)3.33B
Analysts81.76
Price Target666.36 (70.32%)
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 37.98
Fwd PE 24.78
P/S 22.73
P/FCF 32.86
P/OCF 32.86
P/B 61.82
P/tB 666.54
EV/EBITDA 31.03
EPS(TTM)10.3
EY2.63%
EPS(NY)15.79
Fwd EY4.04%
FCF(TTM)11.91
FCFY3.04%
OCF(TTM)11.91
OCFY3.04%
SpS17.21
BVpS6.33
TBVpS0.59
PEG (NY)0.71
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 19.26
F-Score9
WACC10.97%
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 37.98 and the Price/Book (PB) ratio is 61.82.


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.