Last Updated: 14 Nov 2024
Executive Summary
DoubleVerify Holdings Inc. (DV) is a leading provider of digital media measurement, data, and analysis software. The company has a strong financial position with a market capitalization of $3.42 billion, EBITDA of $120.2 million, and EPS of $0.38. DV's revenue and earnings have grown steadily in recent years, and the company is expected to continue to grow in the future. The stock is currently trading at $20.33, which is below its 52-week high of $43.00. Analysts have a positive outlook on DV, with a consensus target price of $22.42.
Company Overview
DoubleVerify was founded in 2008 and is headquartered in New York City. The company's software platform helps advertisers measure the effectiveness of their digital campaigns and ensure that their ads are seen by real people. DV's clients include some of the world's largest brands, such as Procter & Gamble, Unilever, and PepsiCo.
Fundamental Analysis
DV's financial performance has been strong in recent years. The company's revenue has grown from $259.5 million in 2019 to $638.5 million in 2023. Net income has also grown significantly, from $26.7 million in 2019 to $62.1 million in 2023. DV's gross margin is 58.7%, and its operating margin is 15.2%. The company's balance sheet is also strong, with $226.9 million in cash and equivalents and no debt.
DV's key financial ratios are as follows:
P/E ratio: 53.68
PEG ratio: 1.395
Price-to-sales ratio: 5.36
Price-to-book ratio: 3.025
EV/EBITDA ratio: 22.65
Technical Analysis
DV's stock price has been trending lower in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
DV's stock price is likely to remain under pressure in the short term. The company's earnings are expected to decline in the next quarter, and the overall market sentiment is negative. However, DV's long-term outlook is still positive. The company is a leader in a growing market, and its financial position is strong.
Long Term Outlook
DV is expected to continue to grow in the long term. The company's software platform is essential for advertisers who want to measure the effectiveness of their digital campaigns. DV is also well-positioned to benefit from the growth of the programmatic advertising market.
Analyst Recommendations
Analysts have a positive outlook on DV. The consensus target price is $22.42, which represents a potential upside of 10.3% from the current price. Two analysts have a "Strong Buy" rating on DV, 12 have a "Buy" rating, five have a "Hold" rating, and one has a "Sell" rating.
