Assessing Getty Images (GETY) Valuation After Strategic Deals With Perplexity and Webflow Integration
Getty Images Holdings (NYSE:GETY) has launched two major initiatives this week, teaming up with Perplexity on a global licensing agreement and rolling out new Getty Images and iStock apps in the Webflow Marketplace. Both moves aim to broaden access to licensed images as demand rises from AI and digital content creators.
See our latest analysis for Getty Images Holdings.
Despite a rough patch with a year-to-date share price return of -10.9% and one-year total shareholder return dropping over 53%, Getty Images has managed a 13.3% bounce over the past 90 days. Rapid-fire deals and new tech integrations suggest management is actively searching for momentum. However, it remains to be seen if these efforts will translate into a sustained shift in investor sentiment.
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With shares still trading well below analyst targets and recent business momentum picking up, the real question is whether Getty Images is being undervalued by the market or if expectations for future growth are already baked in. Could this be a buying opportunity?
Most Popular Narrative: 57.5% Undervalued
With Getty Images trading at $1.88, the most followed narrative sets a fair value over double that price. The gap signals significant upside potential based on current assumptions. So what’s driving analyst optimism?
The continued emphasis on exclusive content, major event partnerships, and expansion into specialized sectors (e.g., sports, entertainment, news) is strengthening Getty Images' competitive position, enabling premium pricing tiers that can support sustainable net margin growth.
Want to know what underpins this bullish price target? The narrative leans heavily on ambitious revenue growth and a dramatic swing to profitability, all underpinned by sharply improving margins. Curious how these assumptions could more than double the current share price? Dig deeper to unravel the financial bets powering this valuation.
Result: Fair Value of $4.43 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, persistent declines in core creative revenue and ongoing legal battles over AI copyrights could quickly undermine analyst optimism regarding Getty’s upside potential.
Find out about the key risks to this Getty Images Holdings narrative.
Another View: DCF Model Paints a Cautious Picture
While analyst consensus sees Getty Images as undervalued, our SWS DCF model tells a different story. According to this cash flow analysis, the current share price of $1.88 is actually above what the model considers fair value ($1.61). This suggests the stock could be slightly overvalued if future cash flows do not exceed expectations. Could the market be too optimistic about the turnaround?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Getty Images Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 832 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Build Your Own Getty Images Holdings Narrative
If you want a different angle or enjoy doing your own research, you can build your own narrative from the ground up in just a few minutes. Do it your way.
A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Getty Images Holdings.
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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.
Valuation is complex, but we're here to simplify it.
Discover if Getty Images Holdings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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