ZIP
ZipRecruiter, Inc.
$3.87
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 40.6% below fair value
You pay
$3.87
Bear
$5.22
Fair
$6.52
Bull
$7.82
Bear
$5.22
+34.8%
$0.48 × 12x P/E
Fair
$6.52
+68.4%
$0.48 × 15x P/E
Bull
$7.82
+102.2%
$0.48 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
8.0x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $3.50 from 8 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $6.52 per share.
Warnings
Wall Street's average price target is $3.50 (from 8 analysts). Our estimate is 108% above the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples