XStocksXray

Research report · 16 October 2026

AppLovin Corp (APP)

Communication Services · Advertising · US stock · price as of 16 Oct 2026

Key indicators

Price	$266.13
52-week range	$260.59 – $738.01
Market cap	$89.7B
P/E (trailing)	20.5×
EV / EBITDA	16.6×
Free-cash-flow yield	5.0%
Dividend yield	–
Revenue (last 12 months)	$6.8B
Revenue growth (3y a year)	24.8%
Operating margin	77.4%
Return on invested capital	123.5%
Net debt / EBITDA	0.1×

Fair value

Blended fair value$123.58 range $124 – $124

Versus priceOvervalued−54% to fair value

Peer multiples	$98.05
Fundamentals-adjusted multiple	$149.12
10-year DCF (market-scaled)	$761.72
Earnings power value (floor, not blended)	$65.11
Model uncertainty	High

X-Ray Score

65/ 100 · Medium confidence · ahead of 83% of sector peers

Valuation37

Growth78

Profitability66

Financial health85

Dividends–

Five-year price chart navy: price · brown: 200-day average · blue band: fair value range

Executive summary

AppLovin provides a software platform that helps mobile app developers and advertisers acquire users and earn money from their apps. Its advertising technology uses machine learning to match ads with audiences, and the company has also owned mobile games and app publishing operations. Revenue comes mainly from fees and advertising spend processed through its platform, which ties its results to the digital advertising market.

The company reported revenue of $6.8 billion for the last twelve months at AppLovin Corp. Revenue growth over the past three years averaged 24.8% a year. It kept an operating margin of 77.4%. The return on invested capital reached 123%, a measure of profit earned on the money invested in the business. Leverage, measured as net debt to EBITDA, is 0.1 times. The company does not pay a dividend.

StocksXray gives AppLovin Corp an X-Ray Score of 65 out of 100 (medium confidence), ahead of 83% of the S&P 500 stocks in its sector. Its strongest lens is financial health (85) and its weakest is valuation (37).

Our fair value blend is $123.58 (range $123.58 to $123.58). At $266.13 the stock trades 115% above that blend, so the label is "Overvalued" with high model uncertainty. Fair value is a range, not a price target.

XStocksXray

AppLovin Corp (APP)

Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months

	FY2021	FY2022	FY2023	FY2024	FY2025	Now
Price	$94.26	$10.53	$39.85	$323.83	$673.82	$266.13
Market cap	$32.3B	$3.9B	$14.4B	$112.6B	$230.4B	$89.7B
P/E	1,047.3×	–	40.7×	71.5×	69.1×	20.5×
EV / revenue	12.2×	2.2×	9.4×	35.8×	42.2×	13.2×
EV / EBITDA	58.6×	12.2×	13.7×	48.9×	53.2×	16.6×
Price / free cash flow	89.6×	9.5×	13.7×	53.8×	58.0×	19.8×
Free-cash-flow yield	1.1%	10.5%	7.3%	1.9%	1.7%	5.0%
Price / book	15.1×	2.1×	11.5×	103.3×	107.9×	28.4×
Dividend yield	–	–	–	–	–	–

Fundamentals checklist ● 8 Good · ● 3 Average · ● 2 Bad · each check graded against the sector

Cash quality

Earnings backed by cash−1.4%Bad

Risk models

Altman Z score9.3×Good

Piotroski F-Score9 of 9Good

Growth

Revenue growth (3y)24.8%Good

Growth consistency80%Average

Balance sheet

Current ratio4.3×Good

Net debt / EBITDA0.1×Good

Interest cover26.6×Average

Valuation

Fair value vs price0.5×Bad

EBIT / EV yield5.9%Average

Profitability

Return on invested capital123.5%Good

Operating margin77.4%Good

Gross profitability73.1%Good

XStocksXray

AppLovin Corp (APP)

Financials US$ millions, from SEC filings; last column is the last twelve months

Income statement	FY21	FY22	FY23	FY24	FY25	LTM
Revenue	2,793	2,817	1,842	3,224	5,481	6,829
Gross profit	1,805	1,561	1,485	2,703	4,816	6,041
Operating income	150	-48	772	1,911	4,152	5,288
Net income	35	-193	357	1,580	3,334	4,410
Diluted EPS ($)	0.09	-0.52	0.98	4.53	9.75	12.98
Free cash flow	360	412	1,057	2,094	3,971	4,528
Gross margin	64.6%	55.4%	80.6%	83.9%	87.9%	88.5%
Operating margin	5.4%	−1.7%	41.9%	59.3%	75.8%	77.4%
Net margin	1.3%	−6.9%	19.4%	49.0%	60.8%	64.6%
Balance sheet	FY21	FY22	FY23	FY24	FY25	LTM
Total assets	6,164	5,848	5,359	5,869	7,260	8,269
Cash	1,521	1,080	502	697	2,487	3,053
Total debt	3,253	3,245	3,336	3,509	3,513	3,515
Equity	2,138	1,903	1,256	1,090	2,135	3,163
Dividend per share ($)	–	–	–	–	–	–

Revenue and net income US$ billions: navy revenue, teal net income

Margins blue gross, teal operating, brown net

Latest quarters

	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue ($M)	1,159	1,259	1,405	1,658	1,842	1,924
Growth vs a year earlier	+9.5%	+77.0%	+68.2%	+65.9%	+59.0%	+52.8%
Net income ($M)	576	820	836	1,103	1,206	1,267
Diluted EPS ($)	1.67	2.39	2.45	–	3.56	3.76

XStocksXray

AppLovin Corp (APP)

Peers in Advertising

Company	X-Ray
APP · AppLovin Corp	65
OMC · Omnicom Group Inc.	36

Market Compass outlook for Communication Services: Favourable (76/100). It blends regime history, macro sensitivity, momentum and valuation.

Returns

1 week	−3.9%
1 month	−17.2%
3 months	−37.3%
6 months	−44.2%
1 year	−55.8%
3 years	+560.7%
5 years	+208.2%

Technical summary

DailyStrongly bearish2 bullish · 2 neutral · 12 bearish

WeeklyStrongly bearish1 bullish · 1 neutral · 10 bearish

MonthlyBearish2 bullish · 1 neutral · 5 bearish

50-day / 200-day average	$305.68 / $434.73
52-week low / high	$260.59 / $738.01
Classic pivot, support and resistance	S2 253.92 · S1 260.02 · P – · R1 276.52 · R2 286.92

XStocksXray

AppLovin Corp (APP)

Strengths

Return on invested capital of 123.5% is ahead of 86% of its sector peers.
Operating margin of 77.4% is ahead of 97% of its sector peers.
Revenue growth of 24.8% a year over three years is ahead of 92% of its sector peers.
Net debt is only 0.1× EBITDA, ahead of 84% of its sector peers.
Piotroski F-Score of 9 out of 9: most of the nine accounting health tests pass.

Risks and weak spots

Earnings backed by cash is weak against Communication Services peers (−1.4%).
Fair value vs price is weak against Communication Services peers (0.5×).
The price is above our fair value range, so good news may already be in the price.

Latest SEC filings

Date	Form	Items
5 Aug 2026	10-Q
5 Aug 2026	8-K	2.02,9.01
5 Jun 2026	8-K	5.07
6 May 2026	10-Q
6 May 2026	8-K	2.02,9.01
21 Apr 2026	DEF 14A
7 Apr 2026	8-K	5.02,7.01,9.01
19 Feb 2026	10-K

How to read this report

Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.