APP
AppLovin
$343.03
▲ 2.2%Updated Aug 7, 11:30 AM ET
APP at a glance — five pillars scored 0–100 from real filed financials.
Overall: Strong · 72/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 36.4% over the last 12 months
Market Cap
$177.06B
P/E
29.4x
Forward P/E (est.)
21x
ROE
222.0%
Revenue Growth
40.0%
EPS Growth
110.3%
Profit Margin
64.3%
FCF Yield
0.3%
Debt / Equity
1.65x
ROIC
56.0%
Interest Coverage
—
Current Ratio
3.24x
Dividend Yield
—
Implied Growth (rev. DCF)
—
Rating Score
72/100
AppLovin (APP) is a large-cap company in the Application Software industry, part of the Information Technology sector of the S&P 500, with a market value around $177.06B.
In its latest reported year it generated about $5.48B in revenue and $3.33B in net profit.
Our model rates APP Strong (72/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (7 years of history).
The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
59.0% average over the last 3 years
±29.2 pts around 28.0% across 7 years
grew in 5 of the last 6 year-over-year periods
positive in 7 of 7 years
56.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what APP's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. APP trades near $343.03, below its 50-day average ($500.64) and 200-day average ($539.91). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 59 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. APP's is $34.25 (~10.0% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month APP found buyers near $418.46 (support) and sellers near $595.00 (resistance); its 52-week range is $325.58–$745.61. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.1× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
18.4%
Revenue moved from $994.10M in 2019 to $5.48B in 2025, a 32.9% compound annual growth rate. The most recent year grew a strong 40.0% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
88.4%
Operating Margin
75.8%
Net Margin
60.8%
ROE
222.0%
AppLovin keeps about 64.3% of each sales dollar as net profit, with a 88.4% gross margin and 75.8% operating margin. Return on equity is 222.0% and return on invested capital about 56.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$3.51B
Net Debt
$754.32M
Net Debt / EBITDA
0.18x
Debt / Equity
1.65x
Leverage: debt-to-equity is 1.6x, with a current ratio of 3.2x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $3.51B of total debt against $2.76B of cash.
Operating CF
$3.97B
Free Cash Flow
$3.97B
FCF Margin
72.5%
In the latest year AppLovin produced about $3.97B of operating cash flow and $3.97B of free cash flow after capital spending. That is a free-cash-flow yield of about 0.3% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
29.4x
P/S
31.93x
P/B
71.03x
EV / EBITDA
—
APP trades at 29.4x trailing earnings (about 21.0x on estimated forward earnings), 31.9x sales, and 71.0x book value. That is a premium multiple that needs growth to justify it.
Where APP sits versus its Information Technology sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How APP stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (230 S&P 500 companies), APP ranks #17 of 230 by our overall rating. It trades at a discount versus the sector on earnings (29.4x P/E vs. 38.9x median) with a higher return on equity (222.0% vs. 17.5%) and faster revenue growth (40.0% vs. 17.7%).
P/E vs sector
29.4x
median 38.9x
ROE vs sector
222.0%
median 17.5%
Growth vs sector
40.0%
median 17.7%
Sector rank
#17
of 230 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 230 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $343.03 today · expected CAGR 7% – 19%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $7.67B | $10.74B | $15.04B | $21.05B | $29.48B |
| Net income | $3.84B | $5.37B | $7.52B | $10.53B | $14.74B |
| EPS | $7.43 | $10.41 | $14.57 | $20.40 | $28.55 |
| Share price (low) | $126.36 | $176.90 | $247.66 | $346.72 | $485.41 |
| Share price (high) | $215.55 | $301.77 | $422.47 | $591.46 | $828.05 |
| CAGR (low–high) | -63% / -37% | -28% / -6% | -10% / 7% | 0% / 15% | 7% / 19% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for APP:
- Revenue is growing 40.0% a year, a sign of real demand.
- High net margins (64.3%) point to pricing power or efficiency.
- Strong return on equity (222.0%) shows capital is put to work well.
- Our model's overall read is Strong (72/100).
The case against APP:
- Elevated leverage (debt/equity 1.6x) adds financial risk.
- Limited free cash flow at today's price.
Balance-sheet risk — debt/equity of 1.6x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: AppLovin is a large-cap information technology business still growing nicely, with solid profitability, and a heavier debt load to watch. It trades at 29.4x earnings, which our model scores Strong (72/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 36 Wall Street analysts covering APP recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
APP's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
APP — frequently asked questions
Is APP a good stock to buy?
We don't give buy or sell advice. Our model rates AppLovin Strong (72/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is APP's rating on The Stocks School?
AppLovin currently scores 72/100 (Strong) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does APP's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from AppLovin's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for APP calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this APP analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell APP. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.