ZoomInfo Technologies (GTM) moved back into focus after Nvidia CEO Jensen Huang argued that artificial intelligence is more likely to support, not threaten, enterprise software providers such as ZoomInfo.

Even after reacting positively to Jensen Huang’s comments, ZoomInfo’s share price remains under pressure, with a 30 day share price return of 22.86% and a 1 year total shareholder return of 46.74%. This indicates that recent momentum has been weak compared with longer term losses.

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With ZoomInfo shares sitting at US$6.21 after a long stretch of negative returns but trading at a discount to some analyst targets and intrinsic estimates, is there unrealised value here, or is the market already pricing in all the future growth?

Most Popular Narrative: 58.6% Undervalued

Against a last close of $6.21, the most followed narrative puts ZoomInfo Technologies’ fair value at $15.00, which sets a very different bar from recent trading.

The accelerating adoption of advanced AI-powered features such as Copilot and operations solutions is unlocking higher value use cases for enterprise customers, driving strong upsell momentum and expansion into new user personas. This broader product adoption raises average contract values and supports top-line revenue growth through both new customer wins and deeper penetration within existing accounts.

Curious what kind of revenue path and margin profile that quote is pointing to, and which future earnings multiple ties it all together? The full narrative spells out how modest top line assumptions, a step change in profitability and a different share count could support that $15.00 figure, and why the discount rate still matters.

Result: Fair Value of $15.00 (UNDERVALUED)

However, you also need to weigh the risk that tighter privacy rules or large customers building their own data sets could cap demand for ZoomInfo’s platform.

Another Angle On Valuation

Those bullish narratives lean heavily on future earnings power, but the current P/E tells a different story. At 15.3x, ZoomInfo trades slightly above the US Interactive Media and Services average of 14.9x and the peer average of 13.5x, while our fair ratio sits higher at 18.2x. Is that gap a cushion or a warning if expectations change?

Next Steps

The mix of optimism and caution in this article reflects how split the market seems on ZoomInfo right now, so take a moment to check the numbers yourself and move quickly if you want your view to be informed rather than reactive. To get a balanced snapshot of both sides of the debate, it is worth reviewing the 3 key rewards and 1 important warning sign before you decide what the story looks like to you.

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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.