• Wondering if Zeta Global Holdings at US$22.02 is still offering value, or if the easy gains are already behind it? This article focuses squarely on what the numbers are saying about the stock.
• The share price has pulled back about 3.8% over the last week, after a strong 28.5% move over the past month, with returns of 10.6% year to date and 58.3% over the last year.
• Recent news coverage has focused on Zeta Global Holdings as part of broader discussions around software and data driven marketing stocks, as investors reassess how these businesses fit into longer term digital advertising and customer engagement trends. This context helps explain why sentiment can shift quickly around Zeta when expectations about growth or competitive positioning change.
• Zeta Global Holdings currently scores 3 out of 6 on Simply Wall St's valuation checks, indicating a mixed picture of potential undervaluation across different metrics. The details behind that valuation score of 3 will be unpacked using several common approaches, before finishing with a broader framework that can help you think about value beyond any single model.

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

A Discounted Cash Flow model takes estimates of a company’s future cash flows and discounts them back to today’s dollars to arrive at an implied value per share.

For Zeta Global Holdings, the model uses last twelve months Free Cash Flow of about $165.6 million as a starting point. Analysts have provided forecasts out to 2027, with Free Cash Flow projected at $284.89 million in that year, and Simply Wall St then extrapolates further out to 2035 using a 2 Stage Free Cash Flow to Equity framework. Over the next decade, the projected free cash flows, after discounting, range from about $216.3 million in 2026 to $218.8 million in 2035.

Bringing all those projected cash flows back to today gives an estimated intrinsic value of $27.28 per share. Compared with the current share price of $22.02, the DCF output points to an implied discount of about 19.3%, which indicates the stock screens as undervalued on this model alone.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Zeta Global Holdings is undervalued by 19.3%. Track this in your watchlist or portfolio, or discover 49 more high quality undervalued stocks.

Approach 2: Zeta Global Holdings Price vs Sales

For companies where earnings are limited or volatile, the P/S ratio is often a more practical yardstick than P/E because it compares the share price with the revenue base rather than current profits. It helps you focus on what investors are paying for each dollar of sales, which can be useful for software and subscription businesses.

What counts as a "normal" or "fair" P/S ratio depends on how the market views a company’s growth prospects and risk. Higher expected growth and lower perceived risk tend to support higher multiples, while slower growth or higher risk usually pull them down.

Zeta Global Holdings currently trades on a P/S of 3.82x. That sits close to the broader Software industry average P/S of 3.60x, and below the peer group average of 6.39x. Simply Wall St also provides a proprietary "Fair Ratio" of 4.65x, which reflects factors such as earnings growth, industry, profit margin, market cap and risk profile.

This Fair Ratio can be more tailored than a simple comparison with peers or the industry, because it tries to align the multiple with company specific fundamentals rather than broad group averages. When compared with the current P/S of 3.82x, the Fair Ratio of 4.65x indicates that the stock screens as undervalued on this measure.

Result: UNDERVALUED

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Upgrade Your Decision Making: Choose your Zeta Global Holdings Narrative

Earlier it was mentioned that there is an even better way to think about valuation, so Narratives are introduced here as your way of attaching a clear story about Zeta Global Holdings to the numbers you have in mind for its future revenue, earnings and margins, then connecting that story to a Fair Value that you can compare with the current share price to help decide whether the stock looks attractive or stretched for you personally.

On Simply Wall St's Community page, Narratives are available as an accessible tool that lets you pick or build a storyline for Zeta, link it to a full forecast, then see an implied Fair Value that automatically updates when new information such as earnings or news is added. This means your view does not go stale between results or major announcements.

For Zeta today, one Narrative anchored around the lower fair value of US$22.00 builds in more cautious assumptions on growth and risk. Another Narrative anchored around the higher fair value of about US$39.26 reflects a more optimistic view. By comparing each Fair Value with the current price you can see how different perspectives translate into very different conclusions about whether the stock looks expensive or inexpensive to you.

For Zeta Global Holdings however we will make it really easy for you with previews of two leading Zeta Global Holdings Narratives:

Fair value in this bullish Narrative: US$39.26 per share.

Implied discount to that fair value at the last close of US$22.02: about 43.9%.

Revenue growth assumption in this Narrative: 24.68% a year.

• Analysts in this camp see Zeta's AI driven, first party data platform supporting faster revenue growth and customer wins than the broader market expects.
• They build in rising profit margins over time and a higher future P/E multiple, which together support a higher Fair Value estimate for the stock.
• They still flag meaningful risks around data privacy rules, competition and customer concentration, so the upside case depends on how those factors play out.

Fair value in this more cautious Narrative: US$22.00 per share.

Implied premium to that fair value at the last close of US$22.02: about 0.1%.

Revenue growth assumption in this Narrative: 19.20% a year.

• Analysts in this group focus on tighter data privacy rules, reduced third party data access and customer concentration as factors that could limit Zeta's long term growth and pricing power.
• They still assume revenue growth and margin improvement, but pair that with a lower Fair Value and a more modest future P/E multiple than the bullish view.
• They also acknowledge that strong platform adoption, AI products and cash generation could challenge this cautious stance if those trends continue to support higher earnings over time.

Whichever side feels closer to your own view, the key is to decide which set of assumptions on revenue growth, margins, data access and competitive pressure you find more realistic for Zeta Global Holdings, then see how that lines up with the current share price.

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Zeta Global Holdings on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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.