WEBULL

Trump Media & Technology Group (DJT): Revisiting Valuation After a Steep Three-Month Share Price Slide

Simply Wall St · 2d ago

Recent stock performance and context

Trump Media and Technology Group (DJT) has been drifting lower, with the stock down about 16% over the past month and more than 37% over the past 3 months. This has prompted fresh questions about valuation and trajectory.

See our latest analysis for Trump Media & Technology Group.

Zooming out, the share price has slid to about $10.65 and the sharp year to date share price return decline, alongside a steep 1 year total shareholder loss, suggests momentum is clearly fading as investors reassess growth prospects and risk.

If this kind of volatility has you comparing options, it could be a good moment to explore fast growing stocks with high insider ownership for other potential ideas with stronger momentum and backing.

With the share price sliding and fundamentals still in flux, investors are asking whether Trump Media & Technology Group is now trading below its true worth, or if the market is already discounting any realistic path to future growth.

Price-to-Book of 1.3x: Is it justified?

At the last close of $10.65, Trump Media & Technology Group trades on a price to book ratio of 1.3 times, marginally cheaper than the average peer but still slightly above the wider industry.

The price to book multiple compares the company’s market value to its net assets, a useful lens for a young, unprofitable media and technology business where earnings are not yet a reliable guide. For DJT, this means investors are paying a modest premium to the book value backing each share, despite the company still being in loss making territory with limited revenue.

Relative to similar companies, DJT looks like reasonable value on this metric. Its 1.3 times price to book ratio comes in just below the 1.4 times average for peers, which hints that the market is not attaching an especially rich valuation to its balance sheet. However, when set against the broader US Interactive Media and Services industry, where the average stands closer to 1.1 times, DJT still screens as somewhat expensive, suggesting investors are paying more than the sector norm for each dollar of net assets.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price to book of 1.3x (ABOUT RIGHT)

However, significant ongoing losses and uncertain revenue growth still loom, and any setback to user adoption or regulatory challenges could further undermine the investment case.

Find out about the key risks to this Trump Media & Technology Group narrative.

Build Your Own Trump Media & Technology Group Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes, Do it your way.

A great starting point for your Trump Media & Technology Group research is our analysis highlighting 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

Before you move on, strengthen your watchlist with a few more high potential ideas using the Simply Wall St screener, so you are not relying on just one storyline.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.