Zhihu Inc.

NYSE:ZH Stock Report

Market Cap: US$304.1m

Zhihu Valuation

Is ZH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ZH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ZH ($3.65) is trading below our estimate of fair value ($6.06)

Significantly Below Fair Value: ZH is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZH?

Key metric: As ZH is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ZH. This is calculated by dividing ZH's market cap by their current revenue.
What is ZH's PS Ratio?
PS Ratio0.6x
SalesCN¥4.06b
Market CapCN¥2.20b

Price to Sales Ratio vs Peers

How does ZH's PS Ratio compare to its peers?

The above table shows the PS ratio for ZH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.3x
TZOO Travelzoo
2.6x24.8%US$218.0m
CANP.Y Cian
2.2xn/aUS$237.9m
OB Outbrain
0.3x6.6%US$249.2m
FUBO fuboTV
0.3x12.3%US$474.4m
ZH Zhihu
0.6x0.9%US$304.1m

Price-To-Sales vs Peers: ZH is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (1.3x).

Price to Sales Ratio vs Industry

How does ZH's PS Ratio compare vs other companies in the US Interactive Media and Services Industry?

24 CompaniesPrice / SalesEstimated GrowthMarket Cap
FUBO fuboTV
0.3x12.3%US$474.41m
OB Outbrain
0.3x6.6%US$249.24m
TRVG trivago
0.2x5.7%US$116.79m
SST System1
0.2x1.4%US$89.15m
ZH 0.6xIndustry Avg. 1.3xNo. of Companies24PS01.63.24.86.48+
24 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ZH is good value based on its Price-To-Sales Ratio (0.6x) compared to the US Interactive Media and Services industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is ZH's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ZH PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: ZH is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ZH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$3.65
US$5.00
+37.0%
19.7%US$6.27US$3.59n/a6
Nov ’25US$3.56
US$5.00
+40.5%
19.7%US$6.27US$3.59n/a6
Oct ’25US$4.10
US$5.40
+31.7%
26.0%US$8.04US$3.56n/a7
Sep ’25US$3.31
US$5.40
+63.2%
26.0%US$8.04US$3.56n/a7
Aug ’25US$3.17
US$5.64
+78.0%
24.6%US$7.93US$3.56n/a7
Jul ’25US$2.73
US$5.59
+104.7%
25.2%US$7.88US$3.40n/a7
Jun ’25US$3.26
US$8.08
+147.9%
35.6%US$13.01US$4.28n/a8
May ’25US$3.96
US$8.08
+103.9%
35.6%US$13.01US$4.25n/a8
Apr ’25US$4.26
US$8.36
+96.4%
32.6%US$13.05US$4.26n/a9
Mar ’25US$4.74
US$9.91
+109.0%
21.2%US$13.13US$6.39n/a9
Feb ’25US$4.68
US$9.91
+111.7%
21.2%US$13.13US$6.39n/a9
Jan ’25US$5.62
US$10.08
+79.4%
19.9%US$13.19US$6.41n/a9
Dec ’24US$5.13
US$10.20
+99.0%
20.3%US$13.23US$6.43n/a9
Nov ’24US$5.88
US$10.83
+84.1%
21.6%US$15.51US$6.98US$3.569
Oct ’24US$6.24
US$10.85
+73.8%
21.6%US$15.57US$7.00US$4.109
Sep ’24US$6.36
US$10.96
+72.3%
20.5%US$15.59US$7.01US$3.3110
Aug ’24US$7.32
US$11.39
+55.7%
23.0%US$15.43US$7.42US$3.1711
Jul ’24US$6.78
US$11.52
+69.9%
22.8%US$15.41US$7.41US$2.7312
Jun ’24US$6.18
US$11.78
+90.6%
21.6%US$15.53US$7.47US$3.2612
May ’24US$6.66
US$12.14
+82.3%
17.4%US$14.87US$7.73US$3.9612
Apr ’24US$7.62
US$12.31
+61.6%
16.9%US$14.89US$7.74US$4.2612
Mar ’24US$8.82
US$13.86
+57.2%
22.8%US$20.06US$9.10US$4.7412
Feb ’24US$10.08
US$13.64
+35.3%
24.0%US$20.01US$9.08US$4.6812
Jan ’24US$7.80
US$13.92
+78.5%
25.0%US$19.74US$8.96US$5.6213
Dec ’23US$6.12
US$15.24
+149.1%
34.9%US$25.68US$9.48US$5.1312
Nov ’23US$5.94
US$14.83
+149.6%
34.2%US$24.77US$9.14US$5.8812

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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