Complete TZOO Stock Valuation Analysis
Comprehensive intrinsic value analysis using 5 different methodologies
TZOO DCF Analysis
TZOO (Travelzoo) discounted cash flow analysis with multiple scenarios, growth assumptions, and terminal value calculations
Financial Projections
| Metrics | 2022 (Historical) | 2023 (Historical) | 2024 (Historical) | 2025 (Projected) | 2026 (Projected) | 2027 (Projected) | 2028 (Projected) | 2029 (Projected) |
|---|---|---|---|---|---|---|---|---|
| Revenue | $70.6M | $84.5M | $83.9M | $92.2M | $100.3M | $108.3M | $116.1M | $123.6M |
| Revenue Growth % | - | 19.7% | -0.7% | 9.8% | 8.9% | 8.0% | 7.2% | 6.5% |
| EBIT | $7.6M | $15.6M | $18.5M | $15.7M | $17.2M | $18.7M | $20.2M | $21.6M |
| EBIT Margin % | 10.7% | 18.4% | 22.0% | 17.1% | 17.2% | 17.3% | 17.4% | 17.5% |
| Tax Rate % | 32.8% | 29.8% | 28.3% | 33.2% | 32.4% | 31.6% | 30.7% | 29.9% |
| NOPAT | $5.1M | $10.9M | $13.3M | $10.5M | $11.6M | $12.8M | $14.0M | $15.1M |
| NOPAT Margin % | 7.2% | 12.9% | 15.8% | 11.4% | 11.6% | 11.8% | 12.0% | 12.2% |
| Capex | $1.5M | $255.0K | $177.0K | $921.6K | $1.0M | $1.1M | $1.2M | $1.2M |
| Capex / Revenue % | 2.1% | 0.3% | 0.2% | 1.0% | 1.0% | 1.0% | 1.0% | 1.0% |
| Depreciation | $2.2M | $1.9M | $907.0K | $2.0M | $2.1M | $2.3M | $2.5M | $2.6M |
| D&A / Revenue % | 3.1% | 2.2% | 1.1% | 2.1% | 2.1% | 2.1% | 2.1% | 2.1% |
| Change in NWC | $10.8M | $8.5M | $-1.3M | $-714.5K | $-622.2K | $-537.5K | $-460.8K | $-392.4K |
| NWC Change / Revenue % | 15.3% | 10.1% | -1.6% | -0.8% | -0.6% | -0.5% | -0.4% | -0.3% |
| Unlevered FCF | $-5.1M | $4.0M | $15.3M | $12.3M | $13.4M | $14.6M | $15.7M | $16.9M |
| UFCF % Chg. | - | 179.8% | 278.2% | -19.8% | 9.3% | 8.7% | 8.1% | 7.5% |
| FCF / Revenue % | -7.2% | 4.8% | 18.2% | 13.3% | 13.4% | 13.5% | 13.6% | 13.7% |
| Discount Factor | - | - | - | 0.915 | 0.838 | 0.767 | 0.702 | 0.642 |
| Present Value of FCF | - | - | - | $11.2M | $11.2M | $11.2M | $11.0M | $10.9M |
| Sum of PV of UFCF | - | - | - | $11.2M | $22.5M | $33.6M | $44.7M | $55.6M |
WACC Calculation
Weighted Average Cost of Capital used for discounting cash flows.
| WACC Calculation | Value |
|---|---|
| Cost of Debt | 7.4% |
| Tax Rate | 33.2% |
| After Tax Cost of Debt | 4.9% |
| Risk Free Rate | 4.40% |
| Market Risk Premium | 4.3% |
| Beta | 1.18 |
| Cost of Equity | 9.5% |
| Total Debt | $8.1M |
| Market Cap | $151.1M |
| Total Capital | $159.2M |
| Debt Weighting | 5.1% |
| Equity Weighting | 94.9% |
| WACC | 9.3% |
Terminal Value
Choose between perpetuity growth or exit multiple methods.
| Terminal Value Calculation | Value |
|---|---|
| Terminal Growth Rate | 2.5% |
| Final Year FCF | $16.9M |
| Terminal Value | $256.6M |
| PV of Terminal Value | $164.8M |
| Cumulative PV of UFCF | $55.6M |
| Net Debt | $-8.9M |
| Equity Value | $229.3M |
| Shares Outstanding | 12.9M |
| Implied Share Price | $18 |
| Current Share Price | $14 |
| Implied Upside/(Downside) | +31.0% |
Valuation Summary
$17.84
Implied Price
$13.62
Current Price
+31.0%
Upside/Downside
9.3%
WACC
TZOO Peer Valuation Analysis
Relative valuation based on comparable company trading multiples
Peer Valuation Analysis
Fair Value Range Analysis
Based on median multiples from 8 peer companies in Communication Services
P/E Ratio
$13.62
+0.0%
Peer Median: 13.5x
EV/EBITDA
$27.01
+98.3%
Peer Median: 17.6x
P/S Ratio
$9.96
-26.9%
Peer Median: 1.3x
Interpretation: Each multiple provides a different perspective on fair value. Consider which multiple is most relevant for TZOO's business model and current situation.
Multiple Comparison
| Multiple | TZOO Current | Peer Median | Peer Average | Premium/Discount | Assessment |
|---|---|---|---|---|---|
| P/E Ratio | 13.5x | 13.5x | 12.9x | 0.0% | Fair Value |
| EV/EBITDA | 8.3x | 17.6x | 22.0x | -52.6% | Undervalued |
| P/S Ratio | 1.8x | 1.3x | 1.9x | 36.7% | Overvalued |
Peer Companies
Click any company to view their valuation
| Company | Market Cap | P/E Ratio | EV/EBITDA | P/S Ratio |
|---|---|---|---|---|
| $0.60B | 0.0x | 48.2x | 1.3x | |
| $0.24B | 0.0x | 0.0x | 0.3x | |
| $0.15B | 13.5x | 8.3x | 1.8x | |
| $0.12B | 0.0x | 0.0x | 0.7x | |
| $0.11B | 0.0x | 0.0x | 4.0x | |
| $0.12B | 0.0x | 17.6x | 0.9x | |
| $0.08B | 6.4x | 0.0x | 0.4x | |
| $2081.61B | 18.9x | 13.9x | 5.8x |
TZOO Graham Intrinsic Value
Growth-adjusted intrinsic value with two formula variants
Formula Selection
V = EPS × (8.5 + 2g)
Graham's original P/E shortcut for growth, no interest-rate adjustment
V = [EPS × (8.5 + 2g) × 4.4] / Y
Graham's 1974 refinement: adds rate-environment sensitivity
Active Formula: Base-Growth
1.01 × (8.5 + 2 × 138.8%)
Input Data & Growth Assumptions
Current EPS (TTM)$1.01
Latest 10-K • 2024-12-31T00:00:00
Historical 3Y138.8%
Financial statements
Historical 5Y25.3%
Financial statements
Custom
%
Enter a positive growth rate estimate (0-50%)
Graham Intrinsic Value Result
$288.73
Intrinsic Value
$13.62
Current Price
+2019.9%
Upside/Downside
Base Formula
Growth: 138.8%
TZOO Peter Lynch Fair Value
Growth-based valuation using PEG ratio analysis for growth stocks
Fair Value Calculation
EPS (TTM)$1.01
Latest 10-K • 2024-12-31T00:00:00
Historical 3Y138.8%
3-year earnings growth
Historical 5Y25.3%
5-year earnings growth
138.8%
1%50%
Fair Value Formula: EPS × Growth Rate
$1.01 × 138.8% = $140.08
$140.08
Fair Value
$13.62
Current Price
+928.5%
Upside/Downside
PEG Analysis
13.5x
Current P/E
138.8%
Growth Rate
0.10
PEG Ratio (P/E ÷ Growth Rate)
Significantly Undervalued
PEG Ratio Interpretation:
• PEG < 1.0: Undervalued (growth exceeds P/E)
• PEG = 1.0: Fairly valued (ideal Lynch ratio)
• PEG > 1.5: Overvalued (paying premium for growth)
Peter Lynch's Rule:
"The P/E ratio of any company that's fairly priced will equal its growth rate." A stock with 15% growth should trade at a P/E of 15 (PEG = 1.0).
TZOO Earnings Power Value (EPV)
Normalized earnings-based valuation for sustainable earning power assessment
Earnings Normalization
| Earnings Component | Amount ($B) | Description |
|---|---|---|
| Reported Earnings | 0.0 | Base earnings from financial statements |
| Normalized Earnings | 0.0 | Final normalized earning power |
One-time Items: Remove non-recurring gains/losses
Cyclical Adjustment: Normalize for economic cycle position
EPV Result
$11.84
EPV per Share
$13.62
Current Price
-13.0%
Upside/Downside
8.9%
WACC: 8.9% (calculated from market data)
Confidence: High
Normalized earnings approach
EPV Calculation Breakdown
Enterprise Value Calculation
| Normalized Earnings | $0.0B |
| Cost of Capital | 8.9% |
| Enterprise Value | $0.2B |
Per Share Value
| Enterprise Value | $0.2B |
| Shares Outstanding | 0.0B |
| EPV per Share | $11.84 |
WACC Components
| Cost of Equity | 9.2% |
| After-Tax Cost of Debt | 3.5% |
| Equity Weight | 95.6% |
| Debt Weight | 4.4% |
| WACC | 8.9% |