Business quality: about averageValuation: cheaper than most
An average business among communication services companies, priced below most of them.
Pinterest trades at 8.9 times the next 12 months of expected earnings, against a median of 14.8x for the 28 communication services stocks we cover. The quality score blends where it ranks on revenue growth, gross margin, operating margin and free-cash-flow margin (net margin for banks and insurers) over the last 12 months, from SEC filings.
- Revenue grew faster than the sector median: +15.4% vs +10.8%
- Keeps more of each sale (gross margin): 79.0% vs 60.9%
- Less profitable (operating margin): 4.2% vs 18.6%
- Turns more of its sales into cash: 27.0% vs 9.0%