DoubleVerify (DV): Reassessing Valuation After New TikTok Attention Measurement Partnership

DoubleVerify Holdings (DV) just took an important step in its ad tech strategy by extending its DV Authentic Attention product to TikTok as the platform's first badged partner for impression level attention measurement.

See our latest analysis for DoubleVerify Holdings.

Even with this high profile TikTok win, DoubleVerify's 1 month share price return of 9.5 percent has not yet offset a steep year to date share price decline and a weak 1 year total shareholder return. This suggests sentiment is still in recovery mode rather than full on growth enthusiasm.

If this kind of digital ad momentum has your attention, it could be worth exploring other high growth tech and AI names through high growth tech and AI stocks as potential additions to your watchlist.

Yet with shares down sharply over the past year despite solid revenue and profit growth, and trading below analyst targets and some intrinsic value estimates, is DoubleVerify quietly undervalued, or is the market already pricing in its next leg of growth?

Most Popular Narrative Narrative: 19% Undervalued

With DoubleVerify shares last closing at $11.28 against a narrative fair value of $13.92, the valuation lens points to meaningful upside if assumptions hold.

The analysts have a consensus price target of $19.395 for DoubleVerify Holdings based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $27.0, and the most bearish reporting a price target of just $13.0.

Read the complete narrative.

Curious how steady revenue expansion, rising profit margins, and a richer future earnings multiple can all coexist in one story? The twist is in how long term earnings power, not just near term growth, is being modeled to justify that upside valuation. Want to see which future profitability path underpins this gap between price and fair value?

Result: Fair Value of $13.92 (UNDERVALUED)

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

However, sustained platform policy changes or weaker digital ad spend could limit data access and verification demand, undermining the upbeat long term growth narrative.

Find out about the key risks to this DoubleVerify Holdings narrative.

Another Lens on Value

While the narrative fair value points to upside, our ratio based view sends a different signal. DV trades on a rich 40.6 times earnings versus 16.1 times for the US Media industry, 37.5 times for peers, and a fair ratio of 21.1 times. This suggests valuation risk if growth stumbles. Could optimism be running ahead of fundamentals?

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

Build Your Own DoubleVerify Holdings Narrative

If you would rather dig into the numbers yourself or challenge this view, you can build a personalized narrative in just a few minutes: Do it your way.

A great starting point for your DoubleVerify Holdings 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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