4 models fit Ziff Davis Inc. Common Stock and they partly agree: 2 of 4 land within 15% of the average.
Two or more of our models back this value.
Discount(i)Gold80
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionZiff Davis Inc. Common Stock (ZD)
Fair value (4 models)
$70.02
ACCE price target
$60.00
Rating
Undervalued
Horizon
12 months
Fair value published on 16 Oct 2026, 00:00 CEST; previously $71.92 since 11 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 20 Oct 2026, 16:04 CEST.
Price used: $57.89 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, Dividend discount, EV/EBITDA comparison, Graham number, and P/E comparison.
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
17.3% below
+21.0% to fair value
ACCE score
70
out of 100
Analysts
50% buy
6 covering
P/E
0.0x
forward 9.8x
1-year return
+51.5%
Dividend yield
0.00%
Ziff Davis Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Ziff Davis sells a portfolio of consumer internet brands, including Ziff Davis's tech and gaming sites, IGN, and digital subscription and affiliate businesses, with an 85% gross margin that reflects how much of its revenue comes from advertising and affiliate commissions rather than physical product. The bull case rests on that margin structure and a forward multiple of 9.8 times earnings, which prices in very little growth for a business with a 4.2% operating margin that could expand as costs are cut. Revenue is shrinking, down 2.7%, and return on equity is negative at -1.5%, so the investment depends on the operating margin improving rather than the top line recovering. The stock is worth a deeper look if you believe the cost base can carry the margin higher while the declining search and display ad pools stabilise, and it deserves skepticism if they keep falling.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Revenue shrinking year over year
Revenue fell 2.7% year over year and dropped 34.2% quarter over quarter, while the 5-year revenue CAGR is still +4.6%. The recent trend is moving against the long-run record.
moderate
Heavy short interest
Short interest stands at 22.6% of float. That is a high level of bearish positioning, and it can amplify volatility in either direction.
moderate
Thin return on equity
ROE is -1.5% despite an operating margin of 4.2% and a net margin of 44.8%. The earnings jump (+2632% YoY) is not translating into shareholder returns, so it is worth checking what drove it.
AI research notes
AI-assisted·How I use AIWritten Oct 21, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached $288M, and the stock yields 14.7% on that cash flow.
Shares outstanding fell 7.7% last fiscal year, so each remaining share claims a larger slice of the business.
Consensus model fair value sits at $70.02, which is 17.3% above the current price of $57.89.
Why it could disappoint
Revenue fell 2.7% year over year, reversing a five-year average growth rate of 4.6% per year.
The 44.8% net margin reflects a one-off gain, so the headline profitability is not a fair guide to the business.
Return on equity is negative at -1.5% and return on invested capital is only 1.5%, so the company is earning very little on the capital it uses.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 5, 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 ZD's valuation models land
Price
$57.89
Model fair value
$70.02
Model range
$36.16 to $85.75
Fair value $70.02
Price $57.89
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
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