Stock Analysis

Zeta Global Holdings (NYSE:ZETA): Exploring Valuation After Recent Re-Evaluation and Renewed Market Attention

Zeta Global Holdings (NYSE:ZETA) recently drew attention following its revised evaluation, as the company navigates a year-over-year stock decline and market shifts. Despite near-term volatility, Zeta’s long-term growth still stands out among software peers.

See our latest analysis for Zeta Global Holdings.

The past year has been a tale of mixed momentum for Zeta Global Holdings. While the share price recently climbed 32% over the past three months, long-term investors are still grappling with a one-year total shareholder return of -40%. The recent buzz around Zeta’s updated evaluation and upcoming Zeta Live event hints at renewed optimism, but it is the company’s impressive three-year total shareholder return of 183% that really puts its resilience into perspective, even as short-term volatility persists.

If the market’s shifting tides have you curious about other software standouts, now is a smart moment to discover fast growing stocks with high insider ownership

With the recent buzz and a significant discount to analyst price targets, the big question is whether Zeta Global is currently undervalued, presenting a potential buying window, or if the market has already priced in future growth.

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Most Popular Narrative: 25% Undervalued

Compared to Zeta Global Holdings’ last close of $19.77, the most widely followed narrative suggests a fair value of $26.50. This implies notable upside and has sparked attention over what catalysts could drive such a divergence.

Continued expansion and penetration of agency clients, especially among independent agencies with limited internal AI/data capabilities, is opening a vast new pipeline for direct business and increasing average revenue per customer. This supports sustained top-line growth.

Read the complete narrative.

Curious about the bold vision fueling this valuation? The real story lies in ambitious forecasts for profits, margins, and revenue, along with a controversial future profit multiple. What strategic moves and growth expectations are supporting this narrative? Discover which pivotal assumptions push Zeta Global’s projected fair value far above today's price.

Result: Fair Value of $26.50 (UNDERVALUED)

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

However, persistent net losses and intensifying privacy regulations remain significant risks. These factors could challenge Zeta’s path to sustained profitability and growth.

Find out about the key risks to this Zeta Global Holdings narrative.

Build Your Own Zeta Global Holdings Narrative

If you see things differently or like to dig into the details yourself, it takes just a few minutes to shape your own view of Zeta’s outlook, so why not Do it your way

A great starting point for your Zeta Global Holdings research is our analysis highlighting 4 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.

Valuation is complex, but we're here to simplify it.

Discover if Zeta Global 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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About NYSE:ZETA

Zeta Global Holdings

Operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software in the United States and internationally.

Flawless balance sheet and undervalued.

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