Pinterest, Inc.

Valuation Analysis

About the Company

Pinterest, Inc. operates as a visual search and discovery platform in the United States, Canada, Europe, and internationally. The company's platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. It also provides various advertising products to help advertisers meet users; and ad auction that allows to serve ads to users at relevant moments while optimizing business outcomes for advertisers. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

Pinterest, Inc. Stock at a Glance

Pinterest, Inc. (PINS) is currently trading at $20.21 with a market capitalization of $11.3B. The trailing P/E ratio stands at 42.1x, with a forward P/E of 9.03x. The 52-week range spans from $13.84 to $39.93; the current price is 49.4% below the yearly high. Year-over-year revenue growth stands at +17.8%. The net profit margin stands at 7.64%.

💰 Dividend

Pinterest, Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

35 analysts rate Pinterest, Inc. (PINS) on consensus: Buy. The average price target is $27.75, implying +37.3% from the current price. Analyst price targets range from $21.00 to $42.00.

Pinterest, Inc.: The Investment Case in Detail

Pinterest, Inc. (PINS) operates in the Communication Services — specifically Internet Content & Information — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 17.8% pace year-over-year, suggesting the business model continues to find new customers and pricing power. With a gross margin near 79.86%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Wall Street consensus sits at Buy with an average price target implying roughly 37.3% upside from current levels — analyst sentiment is firmly constructive.

The Bear Case

Short interest sits at 19.46% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

With a PEG ratio of 0.31, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 32.18x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 9.03x is meaningfully below the trailing 42.1x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The analyst consensus price target implies 37.3% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (19.46%).

Trading Data

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