Ziff Davis, Inc. (ZD): A Bull Case Theory

We came across a bullish thesis on Ziff Davis, Inc. on Valueinvestorsclub.com by finn520. In this article, we will summarize the bulls’ thesis on ZD. Ziff Davis, Inc.'s share was trading at $38.09 as of September 5th. ZD’s trailing and forward P/E were 24.11 and 5.05 respectively according to Yahoo Finance.

Ziff Davis (ZD) is a New York-based digital media conglomerate operating across five verticals—Technology & Shopping, Gaming & Entertainment, Health & Wellness, Connectivity, and Cybersecurity & Martech—generating $1.4 billion in revenue in 2024 with $494 million Adj EBITDAS (35% margin) and $346 million Adj EBITA (25% margin). The company, with a market cap of $1.31 billion and $267 million net debt, has roots in publishing dating back to 1927 and was acquired by j2 Global (JCOM) in 2012 before spinning off its legacy fax business in 2021.

Under CEO Vivek Shah, ZD has pursued an acquisitive strategy, completing over 90 acquisitions in 30 years, focusing on high-ROIC, niche digital assets that generate recurring revenues via advertising and subscription/licensing, roughly 40% of total revenue. Key brands include CNET, PCMag, IGN, Everyday Health, Speedtest by Ookla, and IPVanish. The company emphasizes disciplined capital allocation, reinvesting FCF into acquisitions, opportunistic share repurchases, and maintaining low leverage. Despite a patchy collection of assets and industry-wide AI-driven disruption to content businesses, ZD trades at compelling multiples—2.8x Adj EBITDAS, 3.9x Adj EBITA, and 5x Adj EPS—reflecting a significant discount to intrinsic value.

Management’s track record of consistent returns on invested capital, strategic segment breakdown, and aggressive share repurchases suggests the market is undervaluing the business. Organic growth has shown improvement over recent years, and insiders have continued buying stock, signaling confidence. The investment case is underpinned by a combination of strong free cash flow generation, competent management, and the potential for value recognition either through operational performance or eventual M&A, making ZD a high-conviction opportunity with limited downside and significant upside potential.

Previously we covered a bullish thesis on Ziff Davis, Inc. (ZD) by Value Don’t Lie in March 2025, which highlighted the company’s undervaluation, high-margin stability, and a shift in capital allocation through share repurchases and acquisitions. The company's stock price has appreciated approximately by 10.44% since our coverage. The thesis still stands as ZD trades at compelling multiples with strong free cash flow. finn520 shares a similar perspective but emphasizes segment-level performance, ROIC focus, and long-term acquisitive strategy as central to its value.

Ziff Davis, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held ZD at the end of the first quarter which was 14 in the previous quarter. While we acknowledge the potential of ZD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.