Pinterest Stock Is Overpriced, But Is It Overvalued?

Pinterest, Inc. (NYSE: PINSis a popular American social media company focused primarily on image sharing and craft inspiration. The San Francisco-based company was founded in 2009 and had its initial public offering (IPO) in 2019. Since going public at $19 per share, PINS has risen about 180% overall, despite falling as low as $10.10 in March. The stock --which last week received the rare double upgrade -- has recently bounced back in the wake of Snap’s (SNAP) positive earnings blowout last week. With Pinterest set to report earnings on October 28, the company will be looking to keep the momentum moving going forward.

After SNAP stock's earnings blowout last week, investors are feeling hopeful about PINS stock earnings report on October 28

Pinterest has a market cap of $31.83 billion and a book value of $3.20 per share. The company's price-to-book ratio stands at 16.00. The company has a forward price-to-earnings ratio of 169.49 and a trailing price-to-earnings ratio of 94.09. As a reminder, a company's price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that calculates its current share price relative to its earnings per share.

Pinterest has beat expectations on three out of its last four earnings reports. In the most recent quarterly report, the company beat expectations with a slimmer-than-expected loss of -$0.07. Pinterest also beat estimates by $0.06 in the fourth quarter of 2019. Subsequently, in the first quarter of 2020, Pinterest posted a loss of -$0.10, missing expectations by $0.01. As for Pinterest's upcoming earnings report (due on October 28), Pinterest is expected to report an EPS of $0.02, has a trailing 12-month EPS of -$0.71.

PINS stock chart ahead of Q3 earnings

1 2
View single page >> |
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.