APPLOVIN CORP-CLASS A (APP) Fundamental Analysis & Valuation
NASDAQ:APP • US03831W1080
517.23 USD
+15.09 (+3.01%)
At close: Mar 9, 2026
520.59 USD
+3.36 (+0.65%)
Pre-Market: 3/10/2026, 5:57:59 AM
This APP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
APP gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. APP gets an excellent profitability rating and is at the same time showing great financial health properties. APP is growing strongly while it is still valued neutral. This is a good combination! This makes APP very considerable for growth and quality investing!
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.
- APP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- APP has a better Return On Assets (45.92%) than 99.64% of its industry peers.
- The Return On Equity of APP (156.15%) is better than 99.28% of its industry peers.
- With an excellent Return On Invested Capital value of 61.04%, APP belongs to the best of the industry, outperforming 99.28% of the companies in the same industry.
- APP had an Average Return On Invested Capital over the past 3 years of 35.79%. This is significantly above the industry average of 10.88%.
- 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 Rank | Sector 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%
1.3 Margins
- With an excellent Profit Margin value of 57.41%, APP belongs to the best of the industry, outperforming 95.67% of the companies in the same industry.
- Looking at the Operating Margin, with a value of 71.73%, APP belongs to the top of the industry, outperforming 99.64% of the companies in the same industry.
- In the last couple of years the Operating Margin of APP has grown nicely.
- APP has a better Gross Margin (86.48%) than 92.78% of its industry peers.
- APP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. APP Health Analysis
2.1 Basic Checks
- APP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- APP has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, APP has less shares outstanding
- The debt/assets ratio for APP has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 23.96 indicates that APP is not in any danger for bankruptcy at the moment.
- The Altman-Z score of APP (23.96) is better than 96.75% of its industry peers.
- 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's Debt to FCF ratio of 0.87 is fine compared to the rest of the industry. APP outperforms 77.62% 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.
- With a Debt to Equity ratio value of 1.65, APP is not doing good in the industry: 80.51% of the companies in the same industry are doing better.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.65 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | 23.96 |
ROIC/WACC5.6
WACC10.89%
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.
- 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 75.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 3.32 |
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!
- 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
- 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.
- Based on estimates for the next years, APP will show a very strong growth in Revenue. The Revenue will grow by 24.40% on average per year.
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
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. APP Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 50.22 indicates a quite expensive valuation of APP.
- APP's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 26.46. APP is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 32.76 indicates a quite expensive valuation of APP.
- APP's Price/Forward Earnings is on the same level as the industry average.
- APP's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.22 | ||
| Fwd PE | 32.76 |
4.2 Price Multiples
- 62.82% of the companies in the same industry are more expensive than APP, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of APP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.44 | ||
| EV/EBITDA | 40.26 |
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.
- A more expensive valuation may be justified as APP's earnings are expected to grow with 35.88% in the coming years.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y40.78%
EPS Next 3Y35.88%
5. APP Dividend Analysis
5.1 Amount
- APP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
APP Fundamentals: All Metrics, Ratios and Statistics
517.23
+15.09 (+3.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-11 2026-02-11/amc
Earnings (Next)05-05 2026-05-05/amc
Inst Owners75.97%
Inst Owner Change0.1%
Ins Owners4.67%
Ins Owner Change-0.12%
Market Cap174.45B
Revenue(TTM)5.81B
Net Income(TTM)3.33B
Analysts81.76
Price Target683.67 (32.18%)
Short Float %5.78%
Short Ratio2.41
Dividend
| Industry Rank | Sector 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)7.8%
EPS NQ rev (3m)7.64%
EPS NY rev (1m)7.23%
EPS NY rev (3m)7.04%
Revenue NQ rev (1m)4.16%
Revenue NQ rev (3m)4.59%
Revenue NY rev (1m)2.51%
Revenue NY rev (3m)2.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.22 | ||
| Fwd PE | 32.76 | ||
| P/S | 30.05 | ||
| P/FCF | 43.44 | ||
| P/OCF | 43.44 | ||
| P/B | 81.72 | ||
| P/tB | 881.2 | ||
| EV/EBITDA | 40.26 |
EPS(TTM)10.3
EY1.99%
EPS(NY)15.79
Fwd EY3.05%
FCF(TTM)11.91
FCFY2.3%
OCF(TTM)11.91
OCFY2.3%
SpS17.21
BVpS6.33
TBVpS0.59
PEG (NY)0.94
PEG (5Y)N/A
Graham Number38.3
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 23.96 |
F-Score9
WACC10.89%
ROIC/WACC5.6
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 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.