Ziff Davis (ZD): Valuation Perspective After Strongest Revenue Growth and Raised Guidance Since 2021

Ziff Davis (ZD) just posted its strongest quarterly revenue growth since 2021, exceeding both revenue and full-year earnings guidance estimates. The company also raised its full-year guidance above peers, which suggests renewed business momentum.

See our latest analysis for Ziff Davis.

After a tough patch with flat revenue growth and falling margins, Ziff Davis’s upbeat guidance and earnings surprise have reset the tone for investors. The share price has rebounded 17% over the past 90 days, but its one-year total shareholder return remains down 11%. This reflects past pressures and illustrates why the outlook is still mixed despite recent momentum.

If you’re on the lookout for other companies catching a wave of renewed growth and insider commitment, broaden your investing horizons and discover fast growing stocks with high insider ownership

With Ziff Davis trading at what appears to be a discount, yet facing lingering questions about long-term growth and profitability, investors must consider whether today’s price signals a buying opportunity or if the market already reflects future potential.

Most Popular Narrative: 14.1% Undervalued

With Ziff Davis closing at $38.89 and the most-followed narrative assigning a fair value of $45.29, the stock is being called out for its valuation edge over the current market price. But what is fueling this optimism, and what core strategy anchors this outlook?

Strategic focus on premium, high-margin verticals (health, gaming, cybersecurity) and the monetization of proprietary brands, such as CNET, Everyday Health, IGN, and Lose It!, is delivering both pricing power and margin resilience. This positions the company for further net margin and EBITDA expansion.

Read the complete narrative.

Want to know the numbers powering this valuation leap? The narrative banks on a transformation fueled by subscription expansion, big margin jumps, and an earnings trajectory that bucks the industry trend. Which one assumption is the secret ingredient driving the fair value? Read on to unravel the bold forecast that is turning analyst heads.

Result: Fair Value of $45.29 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Ziff Davis's reliance on acquisitions and mounting challenges from digital advertising headwinds could still present obstacles to the sustainability of its growth story.

Find out about the key risks to this Ziff Davis narrative.

Another View: What Do Multiples Say?

Looking beyond narrative-driven fair value, the price-to-earnings ratio provides a reality check. Ziff Davis trades on a P/E of 24.1x, notably higher than the US Interactive Media and Services industry average of 17.1x, and just about matches its own fair ratio of 24.1x. This implies investors pay a premium, yet the market sees little room for rerating. Is the optimism justified, or does the higher P/E present a valuation risk if growth stutters?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Ziff Davis Narrative

If you think there’s more to the Ziff Davis story, or want to put the numbers to the test yourself, you can quickly craft your own outlook and perspective in just a few minutes, then share it with the community: Do it your way

A great starting point for your Ziff Davis research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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