3 models fit Travelzoo Common Stock and they agree: 3 of 3 land within 15% of the average. The price is below every model.
Two or more of our models back this value.
Large discount(i)Bronze46
Valued as a mature, profitable company: Discounted cash flow, EV/EBITDA comparison, and Dividend discount.
ACCE opinionTravelzoo Common Stock (TZOO)
Fair value (3 models)
$6.97
ACCE price target
$5.90
Rating
Undervalued
Horizon
12 months
Fair value published on 21 Oct 2026, 13:04 CEST; previously $7.23 since 17 Oct 2026, 00:00 CEST.
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 13:04 CEST.
Price used: $5.07 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, and Dividend discount.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
27.2% below
+37.5% to fair value
ACCE score
35
out of 100
Analysts
100% buy
4 covering
P/E
101.4x
forward 8.1x
1-year return
-50.2%
Dividend yield
0.00%
Travelzoo Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Travelzoo sells subscription-style travel deal newsletters and a membership program, with its revenue coming mainly from advertising placed in those email and web products. The business carries a 77.1% gross margin, but operating margin is negative at -11.9% and revenue is shrinking, down 2.9%, so the gross margin is not currently converting into profit. The stock trades at a trailing P/E of 100.6 against a forward P/E of 7.2, which signals the market expects earnings to recover sharply from a depressed base, a bet the company has to prove before anyone gets paid for it. A 51.6% ROE on a company with a $51 million market cap reflects a small equity base more than strong capital efficiency, and the thin balance sheet leaves little room for a prolonged drop in ad spend. The stock scores 35 out of 100 and sits outside major indices, so it is a small, under-followed name where a deeper look should start with the margin path and the forward earnings assumptions.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Earnings and revenue shrinking
Revenue is down 2.9% year over year and earnings down 12.1%, while the operating margin sits at -11.9%. Net margin of +0.5% depends on non-operating items, not the core business.
high
Score collapse over 90 days
The ACCE score fell from 55 to 35 in 90 days, with the momentum component at just 17 out of 100. The deterioration is recent and ongoing.
moderate
Valuation rests on forward earnings
Trailing P/E is 100.6 against a forward P/E of 7.2, so the cheapness case depends on earnings recovering sharply. The stock trades 27.2% below the model fair value of $6.97, but that gap is only as good as the forecast.
AI research notes
AI-assisted·How I use AIWritten Oct 18, 2026 · figures from 2026-10-16 · prices to Oct 23, 2026
Why it could do well
Analysts rate the stock Buy or Strong Buy, with all 4 covering it at that level, and their mean price target sits far above the share price.
Free cash flow yield is 10.9%, and the company has cut its diluted share count by 10.7% in the last fiscal year.
The consensus of three valuation models puts model fair value at $6.97, which is 27.2% above the current price.
Why it could disappoint
Revenue fell 2.9% year over year, well below the 11.3% average annual growth over the past five years.
Net margin is only 0.5%, and the latest quarter missed earnings expectations by 240.0%.
The stock trades at a trailing P/E of 100.6x, so earnings would need to recover sharply to justify the price.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 27, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where TZOO's valuation models land
Price
$5.07
Model fair value
$6.97
Model range
$6.49 to $7.19
Fair value $6.97
Price $5.07
The price is below the whole model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores