Applovin Corp (APP) stock analysis
Applovin Corp (APP) clears 4 of this site's 8 mechanical value filters, 5 of 8 Buffett-style checks and 3 of 5 Lynch-style checks. At $264.28 it trades 14.4% above this site's neutral DCF value (a margin of safety of -14.4%). Its earnings quality rates Strong and it returns +2.2% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does Applovin do?
AppLovin sells software that helps mobile app makers find users and earn advertising revenue, and it has moved away from owning its own games.
Brands and businesses it owns
- AppLovin AXON
- Adjust
What stands out about Applovin?
- The share price implies 11.4% yearly growth. At $264.28, APP's free cash flow of $13.53 per share would have to grow 11.4% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
- Misses 2 of the 8 value filters. It fails Price/Book < 8 (27.96) and Price/Sales < 7 (12.95); the other 4 pass and 2 were not evaluated. See every filter.
- Close to its 52-week low. At $264.28, APP is 0.8% above its low of $262.19 and 64.0% below its high of $733.60. See the range.
- Strongest against peers: net margin. At 64.6% (peer median 16.9%) it ranks 2nd of 44 among technology stocks this site tracks. See the ranking.
- Weakest against peers: debt / equity. At 1.11 (peer median 0.60) it ranks 33rd of 44 among technology stocks this site tracks. See the ranking.
How has Applovin's share price moved?
The interactive price chart needs JavaScript.
Is Applovin undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) -14.4%
- P/E vs. its own history 20.1x · at/below its cheapest point Real range: 40.5x–71.3x over 3 years (net income per diluted share from each fiscal year's 10-K, paired with the real closing price at that fiscal year-end).
- Wall St. analyst rating Buy · 4.05/5 37 analysts this month: 10 strong buy, 19 buy, 8 hold, 0 sell, 0 strong sell (Finnhub).
- Altman Z″-Score (bankruptcy risk) 7.86 · Safe zone
- Earnings quality (is the profit real?) Strong · all 5 checks clean Beneish M-score −2.45 · accruals −9.7% of assets · 135% of profit arrived as cash · stock comp 3.8% of revenue · share count −2.9% a year. From the latest 10-K (year to Dec 2025) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) +2.2% net Latest fiscal year (2025): dividends 0.0% + buybacks 2.5% − stock comp 0.2%, as a share of today's market cap. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) n/a (under 8 years of filings)
- PEG (growth at a reasonable price) 0.60 · Under fair P/E 20.1× ÷ 33.6% a year of growth behind it. 48th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 3 of 4 · misses capital-light (n/a) Capital-light growth: cannot be measured (under 8 years of filings); Profit is real: cleared; Cash to owners: cleared; Fair price (PEG): cleared. See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 0 flags
- Standing vs. sector peers 5 of 6 measures above the median Compared with the 43 other technology stocks this site tracks: 3 in the top third, 1 in the bottom third.
How does Applovin compare with its peers?
5 of 6 measures sit above the median of the 43 other technology stocks tracked here, 3 in the top third and 1 in the bottom third.
- P/E ratiolower is cheaper · peer median 26.0× 20.1× –14th of 39
- Free-cash-flow yieldhigher is cheaper · peer median 3.8% 5.1% –18th of 44
- Return on equityhigher is better · peer median 24% 193% ✓3rd of 44
- Net marginhigher is better · peer median 16.9% 64.6% ✓2nd of 44
- Revenue growthhigher is better, year on year · peer median 19.1% 60.6% ✓4th of 44
- Debt / equitylower is safer · peer median 0.60 1.11 ✕33rd of 44
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and APP doesn't clear enough of it yet. In its favor: APP is currently earning a strong return on shareholders' equity, and has kept that profitability up over five years, not just this year, converts sales into profit at healthy margins, earns many times its interest expense, so debt service isn't a worry, and trades at a reasonable multiple of owner earnings, his own term for the real cash a business could pay out. Where it comes up short: APP carries more debt relative to equity than he typically tolerates, hasn't grown earnings per share fast enough over five years to impress him, and is trading above what a conservative discounted-cash-flow estimate says it's worth right now.
- ROE (TTM) > 11% ✓
- ROE (5yr avg) > 11% ✓
- Debt/Equity < 0.5 ✕
- Pretax margin > 15% ✓
- EPS growth (5yr) > 7% ✕
- Interest coverage > 5x ✓
- Trading below intrinsic value (DCF) ✕
- Price vs. owner earnings < 25x ✓
- Bonus: returning capital via buybacks FY2025
Lynch looked for growth stories that weren't overpriced for that growth, and APP falls short of his bar. In its favor: APP clears an even tighter PEG-under-1 bar he'd want for a stock growing this fast, isn't asking too much even by a fast grower's usual richer multiple, and is generating real cash to back up a fast grower's higher price tag. Where it comes up short: APP is growing earnings outside the 20-50% band he considered sustainable for a fast grower - either not fast enough to earn the label, or a pace he'd flag as unlikely to hold up, and is leaning on more debt than he liked a growth story to carry.
- PEG < 1 (stricter for fast growers) ✓
- EPS growth 20%-50% ✕
- Debt/Equity < 0.5 ✕
- P/E < 40 ✓
- Price/FCF < 40 ✓
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does Applovin pass?
- Market Cap > $25B $88.4B
- Trailing P/E < 25 20.05
- PEG Ratio < 1.5 0.60
- Price/Book < 8 27.96
- Price/Sales < 7 12.95
- EPS Growth YoY > -5% +56.9%
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is Applovin's margin of safety?
History tracking starts this week - check back in a future week to see how this has moved.
Where is Applovin in its 52-week range?
What is the short interest in Applovin?
11,607,414 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with Applovin? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case +32%
- Short interest under 5% of float 4.0%
- Passes most of the 6 fundamental filters 4/6 passed
- Price run-up backed by value, not just momentum +1% off 52wk low
- Debt/equity stable since 2021 1.51 → 1.65
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have Applovin shareholders gained per year?
Not enough clean earnings history to compute this for APP yet - a loss year in the window breaks the growth math rather than faking a number through it.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from APP's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do Applovin's 10-year financials show?
From APP's own 10-K filings (SEC EDGAR): up to the last 7 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about Applovin
What kind of company is Applovin?
AppLovin sells software that helps mobile app makers find users and earn advertising revenue, and it has moved away from owning its own games. Brands and businesses it owns include AppLovin AXON and Adjust. This site groups it with Technology stocks.
Is Applovin trading above or below its DCF value?
At $264.28, APP trades 14.4% above this site's neutral DCF value of $231.03 per share, a margin of safety of −14.4%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does Applovin pass?
APP passes 4 of 8. It passes Market Cap > $25B ($88.4B), Trailing P/E < 25 (20.05), PEG Ratio < 1.5 (0.60) and EPS Growth YoY > -5% (+56.9%). It misses Price/Book < 8 (27.96) and Price/Sales < 7 (12.95). vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
How fast has Applovin grown its revenue and profit?
From fiscal 2019 to fiscal 2025, APP's revenue grew from $994 million to $5.5 billion, 32.9% a year. Net income went from $119 million to $3.3 billion, and its net profit margin from 12.0% to 60.8%. All figures are from APP's own 10-K filings (SEC EDGAR) and are shown year by year in the 10-Year Financials section of the card above.
Where is Applovin trading compared with its 52-week range?
At $264.28, APP trades 0.6% above its 52-week low of $262.19 and 64.0% below its 52-week high of $733.60. The Near 52-Week Low list tracks stocks in that position.
When does Applovin report earnings next?
Applovin's next earnings report is expected on November 4, 2026 after the market closes, with analysts expecting earnings of $4.09 per share. Dates come from the Finnhub earnings calendar and can move. In its last 4 quarters it beat the estimate 4 times, by an average of +3.5%.
Where do these numbers come from?
- Financial statements: Applovin's 10-K annual report for the year ended Dec 31, 2025, filed Feb 19, 2026 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this Applovin Corp analysis
This page shows every value-investing check the site runs on Applovin Corp (APP) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.