AppLovin Corp (APP) stock analysis
Close on Nov 11, 2026Market cap $135.46BP/E 27.2Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Solid17 of 30 checks passed
AppLovin passes 17 of the 30 checks behind our score; 10 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 5/6
- Growth
- 3/6
- Past performance
- 5/6
- Financial health
- 4/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 26.7% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $404.77 is below our fair value estimate of $552.04.
Return on equity over 15%
Return on equity was 210% over the last twelve months and averaged 71.6% over five years.
Return on capital over 10%
Return on invested capital was 144%, above the 10% that usually covers the cost of capital.
What to watch
High debt
Debt is 107% of shareholders' equity, above the 40% we consider low.
P/B above the industry
AppLovin's price-to-book of 41.06 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
No dividend
AppLovin has not paid a dividend in the last twelve months.
Valuation5/6
P/E below its 5-year median
AppLovin's P/E of 27.2 is below its own 5-year median of 63.6.
P/E below the industry
AppLovin's P/E of 27.2 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA below its 5-year median
AppLovin's EV/EBITDA of 22.4 is below its 5-year median of 27.5.
P/B above the industry
AppLovin's price-to-book of 41.06 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading below fair value
The share price of $404.77 is below our fair value estimate of $552.04.
Margin of safety over 20%
The price is 26.7% below fair value, more than the 20% cushion we look for.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 24.8% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 57.8% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance issued
The latest outlook (3Q26 Revenue, Aug 5, 2026) was issued for the first time, so it neither adds nor takes away points.
Gross margin improving
Gross margin was 88.8% over the last twelve months, against 86.8% a year earlier.
Past performance5/6
Return on equity over 15%
Return on equity was 210% over the last twelve months and averaged 71.6% over five years.
Return on capital over 10%
Return on invested capital was 144%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
AppLovin's return on equity of 210% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 65.9% over the last twelve months, against a 5-year average of 24.7%.
Net margin above the industry
AppLovin's net margin of 65.9% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health4/6
High debt
Debt is 107% of shareholders' equity, above the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 139% of total debt.
Interest well covered
Operating income covers interest expense 29.9 times.
Short-term assets cover short-term debts
Current assets are 3.80 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 19.58; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
AppLovin has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$552.04
The share price is 27% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 45.0× | 63.6× | 27.6× | $668.70 | 53% |
| EV/EBITDA | 23.2× | 27.5× | 18.8× | $418.71 | 47% |
| Earnings powerleft out, too far from the others | 14.9% cost of equity | – | – | $47.68 | – |
| Fair value | $552.04 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 63.6
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $1.70B
- Value traded per 1% price move
- $563.20M
Downside
High risk
- Typical loss in a bad month
- 34.9%
- Volatility (annualized)
- 80%
- Sharpe ratio, 1 year
- -0.53
- Beta to the S&P 500 (5Y)
- 2.46
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2018 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +70.0% | +24.8% | +30.4% | – | |
| Gross profit | +78.1% | +45.6% | +40.0% | – | |
| Operating income | +117.3% | – | – | – | |
| Net income | +111.0% | – | – | – | |
| EPS, diluted | +115.2% | – | – | – |
Returns and balance sheet
8 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | 60.3% | 206.8% | |
| Return on assets | – | – | 50.8% | |
| Current ratio | – | 1.11 | 3.32 | |
| Debt to equity | – | -10.09 | 1.65 | |
| Net debt to EBITDA | – | 6.65× | 0.24× | |
| Interest coverage | – | – | 20.7× | |
| Capex to revenue | – | 0.2% | – | |
| Diluted shares | – | 215M | 342M |
Cash use needs five years of cash flow figures
AppLovin does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 60.8% | 0.83× | 4.07× | 206.8% |
| FY2024 | 49.0% | 0.57× | 4.79× | 134.7% |
| FY2023 | 19.4% | 0.33× | 3.55× | 22.6% |
| FY2022 | -6.8% | 0.47× | 2.97× | -9.5% |
| FY2021 | 1.3% | 0.67× | 4.20× | 3.6% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$3.33B
- Cash generatingOperating cash flow above zero$3.97B
- Return on assets improvedROA up on the prior year29.5% → 56.8%
- Earnings backed by cashOperating cash flow above net income$3.97B vs $3.33B
- Less leverageLong-term debt to assets fell59.8% → 48.4%
- Better liquidityCurrent ratio rose2.19 → 3.32
- No dilutionShare count did not rise348M → 342M
- Gross margin improvedGross margin up on the prior year83.85% → 87.86%
- More efficientAsset turnover rose0.60 → 0.93
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