Ziff Davis (ZD) has drawn fresh attention after raising its full year guidance, supported by a fifth consecutive quarter of revenue growth and strong free cash flow, along with a 7.2% post-earnings share price move.

That post earnings move sits against a mixed backdrop, with a 7 day share price return of 6.44% and year to date share price return of 6.44%, while the 1 year total shareholder return of 29.87% decline and 3 year total shareholder return of 56.94% decline point to momentum improving only recently rather than over the longer term.

If Ziff Davis has you looking more closely at digital and internet businesses, it could be a good moment to see what is standing out in high growth tech and AI stocks.

With Ziff Davis trading at US$36.18 and sitting at a discount to both some analyst targets and certain intrinsic estimates, the key question is whether the recent rebound leaves upside on the table or if the market is already pricing in future growth.

Most Popular Narrative: 16.7% Undervalued

Against the last close of US$36.18, the most followed narrative points to a fair value around US$43.43, setting up a valuation built on specific growth and margin assumptions.

Analysts have kept their fair value estimate for Ziff Davis steady at about US$43.43 per share, with only small tweaks to inputs like the discount rate and assumed future P/E. This reflects a largely unchanged view of the stock's long term outlook.

Curious what kind of revenue path, profit margins and earnings multiple are needed to support that price? The narrative leans on measured growth, fatter margins and a lower future P/E than many investors might expect.

Result: Fair Value of $43.43 (UNDERVALUED)

However, this story can change quickly if acquisition driven growth underperforms or if AI powered content aggregation eats into traffic and advertising revenues.

Build Your Own Ziff Davis Narrative

If you interpret the numbers differently or prefer to review the assumptions yourself, you can create a custom view in minutes with Do it your way.

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

Ready for more investment ideas?

If Ziff Davis has sharpened your thinking, do not stop here, broaden your watchlist with fresh ideas that match how you like to invest.

• Target higher potential gains by scanning these 3540 penny stocks with strong financials where smaller companies can offer outsized moves for investors willing to do the work.
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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.