Semrush (SEMR): Evaluating Valuation Following Q2 Results and Major Investor Conference Updates

Semrush Holdings (NYSE:SEMR) has been making headlines this week after releasing its financial results for the second quarter of 2025 and confirming participation in not one but two major investor conferences: Goldman Sachs Communacopia + Technology and Canaccord Genuity’s 45th Annual Growth Conference. For investors tracking fresh developments, these events offer valuable updates and can trigger a reassessment of what Semrush is worth in today’s market.

Over the past year, Semrush’s stock has faced considerable pressure, dropping more than 42%, with recent months showing little sign of sustainable momentum. While revenue continues to climb at a double-digit pace, the persistent challenge remains profitability. Still, new engagement at high-profile events could be a signal that the company is confident about where it’s headed next. The combination of quarterly results and conference appearances tends to spark renewed interest and sometimes changes how investors view the company’s long-term outlook.

The big question is whether this fresh round of activity means Semrush is undervalued at current levels, or if the market is already factoring in all the future growth on the horizon.

Most Popular Narrative: 27% Undervalued

According to the community narrative, Semrush is trading well below what analysts believe to be its fair value. Their consensus points to significant upside potential, fueled by accelerating AI adoption and targeted enterprise strategies.

The accelerating adoption of AI-powered search and Large Language Model (LLM) interfaces is creating a new layer of complexity for digital marketing and online visibility. This trend is driving increased demand for advanced analytics and optimization tools like Semrush's AI products, positioning the company to capture higher-value enterprise clients and supporting long-term revenue growth.

Want to discover why this stock could be poised for a dramatic re-rating? The narrative hinges on bold projections for future growth and profitability—numbers that might surprise even seasoned investors. Curious which key business shifts drive this eye-catching valuation? Unearth the details and decide for yourself whether the hype matches the facts.

Result: Fair Value of $10.83 (UNDERVALUED)

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

However, a slowdown in enterprise adoption or a fundamental shift in search trends could quickly undermine bullish assumptions and change the growth narrative.

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

Another View: Discounted Cash Flow Tells Its Own Story

While the community and analysts see substantial upside based on growth and market comparisons, our DCF model also suggests Semrush is trading well below its calculated fair value. Does this second estimate reinforce the opportunity, or could it be missing unseen risks?

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 Semrush 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 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 Semrush Holdings Narrative

If you see the story differently or want to run through the numbers yourself, you can shape your own view in just a few minutes. Do it your way.

A great starting point for your Semrush Holdings research is our analysis highlighting 3 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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