ByteDance Is a Steal Even Without TikTok

TikTok might have restarted operations in the U.S., but investors in the app’s parent company, ByteDance, remain in the dark about its future. For those debating buying into ByteDance shares, however, it doesn’t matter. Whatever happens, ByteDance stock is severely undervalued.

Even if TikTok were to disappear entirely from the U.S., cutting off the app’s biggest market for advertising and a major source of its content, ByteDance should be worth $700 billion, applying the average multiple at which Meta Platforms, Snap and Pinterest are trading to ByteDance’s estimated 2024 revenues in China. That’s more than double the $300 billion valuation at which Bytedance offered to buy back shares from investors late last year.