In September 2024, InvestingPro’s Fair Value model identified Zeta Global Holdings Corp. (NYSE:ZETA) as significantly overvalued at $29.51 per share. Fast forward 14 months, and the stock now trades at $18.55, representing a 37% decline that validates the model’s analysis. This case exemplifies how Fair Value analysis helps investors identify potential mispricing, understand intrinsic value, find better entry and exit points, and make more informed decisions. While ZETA has already corrected, investors can discover today’s most promising opportunities on the most overvalued list, where InvestingPro’s models continue to identify stocks trading above their fair value.
Zeta Global provides data-driven marketing solutions powered by artificial intelligence, competing with tech giants like Adobe and Salesforce. When InvestingPro’s Fair Value model flagged ZETA as overvalued in September 2024, the company had posted revenue of $822.09 million but was struggling with negative EBITDA of -$102.21 million and EPS of -$0.87. The stock had been on a strong run with six consecutive months of positive returns, ranging from 4% to 32% monthly gains. Despite this momentum, InvestingPro’s analysis indicated the valuation had become stretched, with key concerns including cyclical political advertising revenue, intense competition, and a high EBITDA multiple limiting upside potential.
InvestingPro’s Fair Value model estimated ZETA’s intrinsic value at just $19.19, suggesting a potential 35% downside from the $29.51 price. The subsequent performance proved this analysis remarkably accurate. Following the overvalued designation, the stock experienced several months of decline, with particularly sharp drops in November 2024 (-23%) and March 2025 (-21%). What makes this call especially noteworthy is that the decline occurred despite significant fundamental improvements—Zeta’s revenue increased 49% to $1.22 billion, EBITDA turned positive at $54.53 million, and EPS improved to
