Zeta Global Holdings (ZETA): Exploring Valuation After the Recent Share Price Slide

Zeta Global Holdings (ZETA) shares have slid recently, catching the attention of investors interested in trends in the software sector. Over the past week, the stock has declined 13%, and it is down 3% for the month.

See our latest analysis for Zeta Global Holdings.

After a strong multi-year run, Zeta Global Holdings has hit a rough patch. Its recent 1-week share price return of -13% adds to a year-to-date decline of almost 8%. The company’s three-year total shareholder return still stands out at over 110%, but current momentum is fading as investors reassess growth prospects and risk appetite in the sector.

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With Zeta’s shares trading well below analyst price targets and the company showing strong long-term returns, is this a hidden bargain for patient investors? Or is the market already factoring in future growth expectations?

Most Popular Narrative: 41.1% Undervalued

Zeta Global Holdings's latest narrative fair value is $29.36 per share, a significant premium over the last close of $17.30. This sets the stage for a deeper look at why analysts have sharply upgraded growth and margin expectations.

The company's extension of its "attractive growth" targets, maintaining over 20 percent growth and enhanced margin targets through 2030, is viewed as a positive signal of management's conviction and the runway for sustained performance.

Read the complete narrative.

Want to know what kind of explosive growth and profit turnaround could warrant such a bold fair value? This narrative leans heavily on aggressive upgrades for both margins and revenues through 2030. Find out what analysts are including in their models. Discover the full picture and uncover the financial levers driving the valuation.

Result: Fair Value of $29.36 (UNDERVALUED)

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

However, heightened privacy regulations or weak profitability could still derail Zeta's ambitious growth targets. This may make long-term forecasts less reliable.

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

Build Your Own Zeta Global Holdings Narrative

If you have a different take on Zeta's future or want to base your outlook on your own analysis, you can put together your own story in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Zeta Global 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.

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