VMEO - Vimeo, Inc.
Price:
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CONSENSUS:
Hold
DETAILS
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PRICE TARGET:
$12.28
DETAILS
HIGH:
$22.00
LOW:
$7.00
MEDIAN:
$7.85
CONSENSUS:
$12.28
UPSIDE:
56.43%
AlphaVal
Deterministic, archetype-aware fair value
High-Growth Software
80% confidence
Primary model: Revenue × Terminal Margin DCF
Adjust Assumptions
13.0%
23.0%
12.0%
Key Value Driver
Revenue growth (13%) × margin expansion to 23%
Terminal Value % of EV
56%
Implied Market Multiple
2.4x
Plain-Language Summary
Our base-case estimate uses a discounted cash flow model based on revenue growth and long-run free cash flow margins. We then blend that result with the average analyst price target of $12.28 from 8 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $11.01 per share.
Warnings
Gross margin of 78% means each dollar of revenue is highly profitable. As the company grows, overhead costs should shrink as a share of revenue, boosting overall profits.
Key Risks
- Current FCF misleads — the model values future margins, not today's cash
- SBC dilution is the hidden tax: 2-4% annual share growth compounds fast
- Revenue deceleration is inevitable — the question is when and how steep