• For investors considering whether Zeta Global Holdings at around US$18.60 is offering value or is priced too richly, this article explores what the current share price may be implying about the business.
• The stock has moved 6.1% over the last 7 days and 17.8% over the last 30 days. Year to date it is down 6.6%, while it shows a 36.0% return over the past year and a 123.0% return over the last 3 years.
• Recent coverage on Zeta Global Holdings has focused on its position in the software sector and how investors are responding to its growth story and competitive standing. These headlines help frame whether the recent share price moves are being driven more by changing sentiment or by shifts in perceived business quality.
• On Simply Wall St's 6-point valuation checklist, Zeta Global Holdings currently scores 5 out of 6. The sections that follow break down what that score represents across different valuation methods, then conclude with a way to think about value that goes beyond the usual ratios.

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

A Discounted Cash Flow model looks at the cash Zeta Global Holdings is expected to generate in the future, then discounts those cash flows back into today’s dollars to estimate what the business might be worth right now.

For Zeta Global Holdings, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is reported at about $165.6 million. Analyst estimates and Simply Wall St extrapolations then project free cash flow rising to $235.1 million in 2026 and $284.9 million in 2027, with further projections out to 2035, all in US dollars.

When those projected cash flows are discounted back, the resulting intrinsic value is estimated at about $27.30 per share. Compared with the current share price of around $18.60, the DCF output suggests the stock is approximately 31.9% below this intrinsic value estimate on this model.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Zeta Global Holdings is undervalued by 31.9%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks.

Approach 2: Zeta Global Holdings Price vs Sales

For companies where earnings are less informative or volatile, the P/S ratio can be a useful way to gauge what investors are paying for each dollar of revenue. It is often applied to growing software businesses where profits may not fully reflect the underlying commercial traction yet.

In general, higher growth expectations and lower perceived risk can support a higher “normal” or “fair” P/S multiple, while slower expected growth or higher risk tends to justify a lower multiple. So context is crucial when you compare any single number in isolation.

Zeta Global Holdings currently trades on a P/S ratio of 3.23x. That sits below the Software industry average of 3.77x and below the peer group average of 4.27x. Simply Wall St’s Fair Ratio for Zeta Global Holdings is 4.36x. This Fair Ratio is a proprietary estimate of what the P/S might be expected to be, after factoring in elements such as earnings growth, profit margins, industry, market cap and company specific risks.

Because the Fair Ratio is tailored to Zeta Global Holdings rather than a broad group, it can be more informative than a simple comparison with peers or the wider industry. With the current 3.23x P/S sitting below the 4.36x Fair Ratio, the shares appear 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, and this is where Narratives come in, letting you attach a clear story about Zeta Global Holdings to the numbers you see, such as your assumptions for future revenue, earnings, margins and the fair value that flows from them.

In practice, a Narrative is your view of what is really driving the company, written out in plain language, then tied directly to a financial forecast and a fair value estimate so you can see how your story translates into numbers.

On Simply Wall St, Narratives sit inside the Community page and are designed to be easy to use. This makes it possible to quickly compare your own view with others on the platform and see how different assumptions lead to different fair values.

For Zeta Global Holdings, one investor might align with a more optimistic Narrative that points toward a fair value around US$39.26. Another might lean toward a more cautious Narrative closer to US$23.00, and by comparing each fair value with the current share price you can decide whether those stories suggest a buy, hold or sell case for you.

Because Narratives on Simply Wall St update automatically when new information such as earnings, guidance changes or major news is added, your story, forecast and implied fair value can stay in sync with what is actually happening at Zeta Global Holdings.

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.