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APP

S&P 500
Favorable · 68/100

AppLovin

Information Technology
Application Software

$469.39

0.1%

Updated Today 7:15 PM ET

Price — Past Year

▲ Up 36.4% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$157.79B

P/E

40.25x

Forward P/E (est.)

28.75x

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

68/100

Technical Analysis (Educational)
Research

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 $469.39, below its 50-day average ($491.91) and 200-day average ($542.25). 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 20 it is oversold — selling has been heavy and a bounce is possible.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. APP's is $33.54 (~7.1% 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 $460.20 (support) and sellers near $622.00 (resistance); its 52-week range is $320.00–$745.61. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 1.8× the 20-day average — heavier than usual, which adds conviction to the move. 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.

Business Overview
Research

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 $157.79B.

In its latest reported year it generated about $5.48B in revenue and $3.33B in net profit.

Our model rates APP Favorable (68/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

18.4%

Revenue moved from $2.79B in 2021 to $5.48B in 2025, a 18.4% 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.

Profitability
Research

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.

Debt Analysis
Research

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.

Cash Flow Analysis
Research

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.

Valuation Analysis
Research

P/E

40.25x

P/S

31.93x

P/B

97.26x

EV / EBITDA

39.99x

APP trades at 40.3x trailing earnings (about 28.8x on estimated forward earnings), 31.9x sales, and 97.3x book value. That is a rich multiple that prices in a lot of future growth.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
40.3xExpensive
Forward P/E
28.8xExpensive
P/S ratio
31.9xExpensive
Revenue growth
40.0%Strong
EPS growth
110.3%Strong
Gross margin
88.4%Strong
Net margin
64.3%Strong
ROE
222.0%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How APP stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.

In the Information Technology sector (72 S&P 500 companies), APP ranks #21 of 72 by our overall rating. It trades at roughly in line versus the sector on earnings (40.3x P/E vs. 35.6x median) with a higher return on equity (222.0% vs. 25.6%) and faster revenue growth (40.0% vs. 17.4%).

P/E vs sector

40.3x

median 35.6x

ROE vs sector

222.0%

median 25.6%

Growth vs sector

40.0%

median 17.4%

Sector rank

#21

of 72 by rating

CompanyP/ERev Gr.Rating
APPThis stock40.3x40.0%Favorable· 68
CDNS91.9x13.4%Neutral· 50
SNPS112.5x39.5%Weak· 38
PLTR136.5x67.7%Strong· 74
DDOG29.5%Weak· 39
ADBE10.9x11.5%Strong· 78
INTU15.9x15.1%Strong· 77
ORCL31.2x17.4%Favorable· 66
Information Technology median35.6x17.4%61/100

Valuation vs. quality map

sector medianCDNSSNPSPLTRADBEINTUORCLAPPP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 72 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$1,051.82$1,753.03

vs. $469.39 today · expected CAGR 18%30%

Metric20262027202820292030
Revenue$7.67B$10.74B$15.04B$21.05B$29.48B
Net income$3.84B$5.37B$7.52B$10.53B$14.74B
EPS$11.41$15.97$22.36$31.30$43.83
Share price (low)$273.80$383.31$536.64$751.30$1,051.82
Share price (high)$456.33$638.86$894.40$1,252.16$1,753.03
CAGR (low–high)-42% / -3%-10% / 17%5% / 24%12% / 28%18% / 30%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

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 Favorable (68/100).
Bear Case

The case against APP:

  • Elevated leverage (debt/equity 1.6x) adds financial risk.
  • A rich 40.3x earnings multiple prices in a lot of growth.
  • Limited free cash flow at today's price.
Key Risks
Research

Valuation risk — at 40.3x earnings, disappointing results could compress the multiple.

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.

Investment Thesis
Research

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 40.3x earnings, which our model scores Favorable (68/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

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.