Vimeo, Inc. logo VMEO - Vimeo, Inc.

Inactive Ticker VMEO is not actively trading. Quotes and analytics may be stale.
Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 2
HOLD 6
SELL 0
STRONG
SELL
0
| PRICE TARGET: $12.28 DETAILS
HIGH: $22.00
LOW: $7.00
MEDIAN: $7.85
CONSENSUS: $12.28
UPSIDE: 56.43%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

High-Growth Software 80% confidence

Primary model: Revenue × Terminal Margin DCF

Valuation Signal Undervalued Moderate
Trading 28.7% below fair value
Current Price $7.85
Bear Case $7.29 7.1% downside ($7.29 - $7.85) / $7.85 = -7.1% 8% rev growth, 17% terminal margin
Fair Value $11.01 40.2% upside ($11.01 - $7.85) / $7.85 = 40.2% 13% rev growth, 23% terminal margin
Bull Case $14.70 87.3% upside ($14.70 - $7.85) / $7.85 = 87.3% 17% rev growth, 26% terminal margin

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