ZIP
ZipRecruiter, Inc.
$4.54
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 89.6% above fair value
You pay
$4.54
Bear
$1.92
Fair
$2.39
Bull
$2.87
Bear
$1.92
-57.8%
$0.16 × 12x P/E
Fair
$2.39
-47.2%
$0.16 × 15x P/E
Bull
$2.87
-36.7%
$0.16 × 18x P/E
Adjust Assumptions
15.0x
0.16$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
28.4x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (8 analysts)
$4.75
Divergence from AlphaVal
50%
Summary
Applying a 15x P/E to adjusted EPS of $0.16, the base-case value is $2.39 per share.
Warnings
Wall Street's average price target is $4.75 (from 8 analysts). Our estimate is 50% below 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