Ziff Davis (ZD), mcap=$3.4bn, price $72.66 vs $82.00

$ZD pitch:
– Operator and serial acquirer of web-properties trading under 9x EBITDA and runway for further consolidation and growth in the mid-term.
– Parent of the recent $CCSI spin-off – investors still anchor valuation to the spun-out legacy fax assets.
– Current assets include Pcmag.com, Mashable, and BabyCenter).
– Earns revenues from advertising and subscriptions.
– Over the last 5 years grew revenues and EBITDA at a 20% CAGR.
– Platform to grow via a proven M&A strategy – 500 opportunities evaluated during 2021 alone.
– Management aims to double the size of the business every 5 to 6 years.

$ZD valuation:
– On management 2022 guidance trades at 14xPE and 10x EBITDA.
– Assuming the company can continue making accretive acquisitions, ZD multiples are lowered to 8.8x EBITDA and 11xPE.

Exp. gain: Not specified.

Full ZD write-up (free guest account required):

Leave a Comment