AppLovin Corp (APP)
Communication Services · Advertising · US stock · S&P 500 component
$264.28
▼ -3.62 (1.35%)
Fair valueFair
$308 +16.4% to fair value
$154fair band $262–$373$461
Day's range
$260.97 – $270.60
52-week range
$260.59 – $738.01
About AppLovin Corp
AppLovin provides a software platform that helps mobile app developers and advertisers acquire users and earn money from their apps. Its advertising technology uses machine learning to match ads with audiences, and the company has also owned mobile games and app publishing operations. Revenue comes mainly from fees and advertising spend processed through its platform, which ties its results to the digital advertising market.
The company reported revenue of $6.8 billion for the last twelve months at AppLovin Corp. Revenue growth over the past three years averaged 24.8% a year. It kept an operating margin of 77.4%. The return on invested capital reached 123%, a measure of profit earned on the money invested in the business. Leverage, measured as net debt to EBITDA, is 0.1 times. The company does not pay a dividend. On the site's X-Ray Score, it rates 72 out of 100.
Price chart
52-wk range $260.59 – $738.01Volume 2,853,759Daily, split-adjusted
Vitals
Market cap$89.1B
52-week range$260.59 – $738.01
Volume (last day)2,853,759
P/E (TTM)20.4
EBIT / EV yield5.9%
Free-cash-flow yield–
Dividend yieldNo dividend
Revenue (TTM)$6.8B
Net income (TTM)$4.4B
Operating margin77.4%
Return on capital123.5%
Debt incl. leases$3.5B
Cash & securities$3.1B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$308middle half of models $227 – $368
Fair
+16.4% to fair value
Average of the 13 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Peak-cycle earnings: the current operating margin is more than 1.5x its 7-year average, so multiples applied to today's profit may overstate value; model uncertainty is set to High
Price $264
Undervalued < $262Fair $262 – $373Overvalued > $373
P/E multiple
$320
P/B multiple
$227
P/S multiple
$204
EV/EBITDA multiple
$271
EV/EBIT multiple
$513
EV/revenue multiple
$227
10-year DCF, EBITDA exit
$392
5-year DCF, EBITDA exit
$384
10-year DCF, revenue exit
$368
5-year DCF, revenue exit
$349
10-year DCF, growth exit
$283
5-year DCF, growth exit
$257
Earnings power value
$202
Growth the price implies
9.5%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Strong business at a fair price
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Communication Services peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Fair
63/100
Priced about in line with its sector.
See the numbers →
EBIT / EV yield5.9%
Fair value vs price1.2×
Growth
Strong
78/100
Growing faster than most of its sector.
See the numbers →
Revenue growth (3y)24.8%
Growth consistency80%
Profitability
Fair
66/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital123.5%
Operating margin77.4%
Gross profitability73.1%
Financial health
Strong
85/100
Balance sheet looks strong: debt is well covered.
See the numbers →
Piotroski F-Score9 / 9
Net debt / EBITDA0.1×
Interest cover26.6×
Dividends
None
–/100
Pays no dividend.
See the numbers →
Quarterly results: last 6 quarters
+9.5%
Mar '25
+77.0%
Jun '25
+68.2%
Sep '25
+65.9%
Dec '25
+59.0%
Mar '26
+52.8%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.9B, diluted EPS $3.76.
SWOT analysis: AppLovin Corp
Strengthsinside the company
- Return on invested capital is 123.5%, against a median of 8.9% for sector peers.
- Operating margin of 77.4% is well above the 18.8% median of sector peers, a sign of pricing power or lower costs.
- Revenue has grown 24.8% a year over three years (median 4.7% for sector peers).
- Net debt is only 0.1x EBITDA.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- Revenue growth picked up to 70.0% last year from 24.8% a year over three years.
- Our Market Compass rates the backdrop for Communication Services as favourable.
Threatsvaluation and setting
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
- The price trend is down on the daily and weekly signals.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare APP with peers and sector
Medians of 17 Communication Services peers and of 17 Communication Services stocks in our universe.
Largest peers (X-Ray Score): GOOG 50, META 58, NFLX 58, CCZ 48, DIS 56, VZ 49.
| Metric | APP | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 72 | 51 | 51 |
| Valuation | 63 | 50 | 50 |
| Growth | 78 | 48 | 48 |
| Profitability | 66 | 52 | 52 |
| Financial health | 85 | 51 | 51 |
| Dividends | – | 47 | 47 |
Sector leaders: highest X-Ray Score in Communication Services
APP ranks #1 of 18 in Communication Services by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for APP
Each factor is rated by where APP stands among the 18 Communication Services stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 11 Good · 3 Average · 5 Bad of 19
Growth: 2 · 0 · 0
Profitability: 5 · 0 · 0
Financial strength: 3 · 1 · 0
Valuation: 0 · 2 · 2
Cash flow: 1 · 0 · 2
Efficiency: 0 · 0 · 1
| Factor | APP | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +24.8% | Good beats 92% | +5.6% | – | – |
| Revenue growth, last year | +70.0% | Good beats 97% | +7.7% | +70.0% | ≈ In line |
| Profitability | |||||
| Gross margin | 88.5% | Good beats 96% | 47.1% | 80.6% | ≈ In line |
| Operating margin | 77.4% | Good beats 97% | 19.3% | 41.9% | ▲ Better |
| Net margin | 64.6% | Good beats 97% | 10.6% | 19.4% | ▲ Better |
| Return on invested capital | 123.5% | Good beats 86% | 10.4% | – | – |
| Return on equity | 139.4% | Good beats 92% | 17.9% | 28.4% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | 0.1x | Good beats 84% | 1.4x | 2.2x | ▲ Better |
| Interest cover | 26.6x | Average beats 59% | 11.8x | 4.5x | ▲ Better |
| Current ratio | 4.30 | Good beats 86% | 1.10 | 3.32 | ▲ Better |
| Piotroski F-score | 9 / 9 | Good beats 97% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 20.2x | Average beats 56% | 20.8x | 70.2x | ▲ Better |
| Price / book | 28.2x | Bad beats 8% | 2.8x | 15.1x | ▼ Worse |
| Price / sales | 13.0x | Bad beats 3% | 2.0x | 11.6x | ▼ Worse |
| EV / EBITDA | 16.5x | Average beats 38% | 13.4x | 48.9x | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 66.3% | Good beats 97% | 15.7% | 57.4% | ▲ Better |
| Cash from operations / net income | 1.03 | Bad beats 23% | 1.98 | 2.15 | ▼ Worse |
| Accruals (lower is better) | −1.4% | Bad beats 28% | −5.8% | – | – |
| Efficiency | |||||
| Days sales outstanding | 116 days | Bad beats 9% | 47 days | 121 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 8 Good · ● 4 Average · ● 1 BadCash quality
Earnings backed by cashBad
Risk models
Altman Z''Good
Piotroski F-ScoreGood
Growth
Revenue growth (3y)Good
Growth consistencyAverage
Balance sheet
Current ratioGood
Net debt / EBITDAGood
Interest coverAverage
Valuation
Fair value vs priceAverage
EBIT / EV yieldAverage
Profitability
Return on invested capitalGood
Operating marginGood
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 69/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $2.8B | $2.8B | $1.8B | $3.2B | $5.5B |
| Operating income | $150M | −$48M | $772M | $1.9B | $4.2B |
| Net income | $35M | −$193M | $357M | $1.6B | $3.3B |
| Operating cash flow | $362M | $413M | $1.1B | $2.1B | $4.0B |
| Operating margin | 5.4% | -1.7% | 41.9% | 59.3% | 75.8% |
| Free cash flow | $360M | $412M | $1.1B | $2.1B | – |
| Diluted EPS | $0.09 | $-0.52 | $0.98 | $4.53 | $9.75 |
Fiscal years, from SEC filings.
Technical summary
Daily
Strongly bearish
2 bullish · 2 neutral · 12 bearish
Weekly
Strongly bearish
1 bullish · 1 neutral · 10 bearish
Monthly
Bearish
2 bullish · 1 neutral · 5 bearish
Moving averages (daily)
| SMA 10 | 270.2 | Bearish |
| EMA 10 | 271.6 | Bearish |
| SMA 20 | 279.4 | Bearish |
| EMA 20 | 280.4 | Bearish |
| SMA 50 | 301.0 | Bearish |
| EMA 50 | 310.9 | Bearish |
| SMA 100 | 381.1 | Bearish |
| EMA 100 | 356.8 | Bearish |
| SMA 200 | 427.4 | Bearish |
| EMA 200 | 403.4 | Bearish |
Oscillators (daily)
| RSI (14) | 37.31 | Neutral |
| MACD (12, 26) | -12.81 | Bearish |
| Momentum (12) | -5.20 | Bearish |
| Stochastic %K (14) | 13.87 | Bullish |
| Williams %R (14) | -86.13 | Bullish |
| CCI (20) | -90.94 | Neutral |
Pivot points (classic, last session)
S3 250.3 | S2 255.7 | S1 260.0 | Pivot 265.3 | R1 269.6 | R2 274.9 | R3 279.2 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
ETFs that hold APP
| ETF | Share of the fund |
|---|---|
| IGV iShares Expanded Tech-Software Sector | 4.76% |
| XOVR ERShares Private-Public Crossover | 3.95% |
| QGRO American Century U.S. Quality Growth | 2.77% |
| SPHQ Invesco S&P 500 Quality | 2.06% |
| QTEC First Trust NASDAQ-100-Technology Sect... | 1.76% |
| SPHB Invesco S&P 500 High Beta | 1.71% |
| SKYY First Trust Cloud Computing | 1.65% |
| XNTK SPDR Morgan Stanley Technology | 1.56% |
The eight funds with the largest weight in APP among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
APP SEC filings
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
DEF 14ASEC EDGAR
Proxy statement
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
10-KSEC EDGAR
Annual report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.