Does Zeta Global Still Offer Value After AI Platform Expansion and Three Year 110% Surge?

• Wondering if Zeta Global Holdings at around $17.89 is a sleeper value play or already priced for perfection, you are not the only one trying to figure out whether now is the moment to get in or add more.
• The stock has been choppy lately, down 8.3% over the last week and 4.5% year to date, but it is still up 109.7% over the past three years, which highlights how quickly sentiment can swing on this name.
• Recent headlines have focused on Zeta expanding its AI driven marketing platform and signing new enterprise level partnerships, reinforcing the story that it is positioning itself as a scaled alternative to the big ad tech players. At the same time, coverage around shifting digital ad budgets and tighter marketing spend has put a spotlight on which platforms can deliver measurable ROI.
• On our checklist of six valuation tests, Zeta Global scores 5 out of 6. This suggests the market may still be underestimating parts of the story. Next, we will walk through the key valuation approaches before finishing with a more holistic way to judge whether the current price makes sense.

Find out why Zeta Global Holdings's -6.2% return over the last year is lagging behind its peers.

Approach 1: Zeta Global Holdings Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model estimates what a company is worth by projecting the cash it can generate in the future and then discounting those cash flows back to today in dollar terms.

For Zeta Global Holdings, the 2 Stage Free Cash Flow to Equity model starts from last twelve months free cash flow of about $129.5 million and then applies analyst forecasts and extrapolated growth. Simply Wall St uses analyst estimates where available. In this case, free cash flow is projected to rise to around $272.7 million by 2027 and to roughly $478.8 million by 2035, indicating a strong expected ramp up in cash generation over the next decade.

When these future cash flows are discounted back, the model arrives at an intrinsic value of about $26.02 per share. Compared with the current share price around $17.89, this implies Zeta could be about 31.2% undervalued on a cash flow basis, which suggests the market is not fully pricing in the projected growth trajectory.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Zeta Global Holdings is undervalued by 31.2%. Track this in your watchlist or portfolio, or discover 917 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Zeta Global Holdings.

Approach 2: Zeta Global Holdings Price vs Sales

For growth focused software companies that are still scaling profitability, the Price to Sales (P/S) multiple is often the cleanest way to compare value because revenue tends to be more stable than earnings while margins are still developing. Investors typically accept a higher P/S for businesses with stronger growth, more predictable revenue and lower perceived risk, while slower or riskier names usually trade on lower multiples.

Zeta Global currently trades on a P/S of about 3.6x, which is below both the Software industry average of roughly 4.9x and the peer group average near 11.0x. Simply Wall St also calculates a proprietary “Fair Ratio” of around 5.2x for Zeta, which reflects what the P/S multiple could be given its growth profile, margins, industry, market cap and risk characteristics. This Fair Ratio is more tailored than a simple comparison with peers or the sector because it adjusts for company specific strengths and weaknesses rather than assuming all software names deserve the same multiple. With the Fair Ratio sitting meaningfully above the current 3.6x, the P/S perspective points to Zeta Global still being undervalued.

Result: UNDERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1456 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Zeta Global Holdings Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simple stories you build around a company that connect your view of its future revenue, earnings and margins to a specific fair value estimate.

Instead of just looking at static multiples, a Narrative links what you believe about Zeta Global Holdings competitive position, growth drivers and risks to a concrete financial forecast, and then compares the resulting fair value to today’s share price to help you decide whether it may be a buy, hold or sell.

Narratives on Simply Wall St are easy to use and live inside the Community page, where millions of investors can create and share their own views. They are updated dynamically as new information, such as earnings or major news, is released, so your investment thesis stays current without you having to rebuild it from scratch.

For example, one Zeta Global Holdings Narrative might lean bullish and justify a fair value near $44 per share based on sustained 20 percent plus organic growth and expanding margins. A more cautious Narrative could land closer to $18 per share if you expect slower adoption, tougher competition and execution risks, showing how the same company can look attractively priced or fully valued depending on your story and assumptions.

Do you think there's more to the story for Zeta Global Holdings? Head over to our Community to see what others are saying!

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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