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Assessing DoubleVerify Holdings (DV) Valuation After Recent Mixed Share Price Performance

Simply Wall St · 3d ago

Why DoubleVerify Holdings is on investors’ radar today

DoubleVerify Holdings (DV) sits in focus today without a single headline driving attention, which makes its current share price of US$11.21 and recent return pattern more interesting for investors watching ad-tech valuations.

See our latest analysis for DoubleVerify Holdings.

Recent trading has been mixed, with a 1-day share price return of 2.28% and a year to date share price return of 3.22%, set against a 1-year total shareholder return decline of 43.84% and a 52.50% decline over three years. This points to short term momentum building, while longer term investors have experienced weaker results.

If DoubleVerify has you reassessing opportunities in ad tech, it could be a useful moment to broaden your watchlist with high growth tech and AI stocks.

With DoubleVerify generating US$733.3m in revenue and US$44.7m in net income, and trading at US$11.21 versus a US$13.92 target, the key question is whether this represents a buying opportunity or if markets already fully reflect its future growth potential.

Most Popular Narrative Narrative: 19.5% Undervalued

The most followed valuation narrative sees DoubleVerify’s fair value at US$13.92 per share, compared with the recent close at US$11.21. It builds a detailed case around future earnings power and margins.

The analysts have a consensus price target of $19.395 for DoubleVerify Holdings based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $27.0, and the most bearish reporting a price target of just $13.0.

Read the complete narrative.

Curious what kind of earnings climb, margin profile, and valuation multiple are incorporated into that fair value line? Short term guidance, long term assumptions, and one central profitability story sit underneath it. The full narrative lays out exactly how those pieces fit together.

Result: Fair Value of $13.92 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, you still need to weigh real risks, such as tighter platform data access or advertisers building in house tools that could pressure DoubleVerify’s revenue and margins.

Find out about the key risks to this DoubleVerify Holdings narrative.

Build Your Own DoubleVerify Holdings Narrative

If you are not fully aligned with this view or prefer to stress test the numbers yourself, you can build your own narrative in minutes with Do it your way.

A great starting point for your DoubleVerify Holdings research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If DoubleVerify has sharpened your thinking, now is a good time to widen your search and line up your next set of high conviction watchlist candidates.

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.