Complete VMEO Stock Valuation Analysis
Comprehensive intrinsic value analysis using 6 different methodologies
VMEO DCF Analysis
VMEO (Vimeo, Inc.) 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 | $433.0M | $417.2M | $417.0M | $437.1M | $456.1M | $473.9M | $490.6M | $506.1M |
| Revenue Growth % | - | -3.7% | -0.0% | 4.8% | 4.3% | 3.9% | 3.5% | 3.2% |
| EBIT | $-82.9M | $13.0M | $18.7M | $21.9M | $22.8M | $23.7M | $24.5M | $25.3M |
| EBIT Margin % | -19.2% | 3.1% | 4.5% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% |
| Tax Rate % | 25.0% | 11.6% | 19.9% | 21.3% | 21.7% | 22.0% | 22.4% | 22.8% |
| NOPAT | $-62.2M | $11.5M | $15.0M | $17.2M | $17.9M | $18.5M | $19.0M | $19.5M |
| NOPAT Margin % | -14.4% | 2.8% | 3.6% | 3.9% | 3.9% | 3.9% | 3.9% | 3.9% |
| Capex | $802.0K | $108.0K | $222.0K | $4.4M | $4.6M | $4.7M | $4.9M | $5.1M |
| Capex / Revenue % | 0.2% | 0.0% | 0.1% | 1.0% | 1.0% | 1.0% | 1.0% | 1.0% |
| Depreciation | $7.3M | $4.8M | $1.7M | $4.8M | $5.0M | $5.2M | $5.3M | $5.5M |
| D&A / Revenue % | 1.7% | 1.2% | 0.4% | 1.1% | 1.1% | 1.1% | 1.1% | 1.1% |
| Change in NWC | $-20.7M | $33.2M | $27.6M | $10.7M | $8.9M | $7.4M | $6.2M | $5.1M |
| NWC Change / Revenue % | -4.8% | 8.0% | 6.6% | 2.5% | 2.0% | 1.6% | 1.3% | 1.0% |
| Unlevered FCF | $-35.0M | $-16.9M | $-11.2M | $6.9M | $9.3M | $11.5M | $13.3M | $14.9M |
| UFCF % Chg. | - | 51.5% | 34.2% | 161.7% | 35.6% | 22.9% | 16.2% | 12.0% |
| FCF / Revenue % | -8.1% | -4.1% | -2.7% | 1.6% | 2.0% | 2.4% | 2.7% | 2.9% |
| Discount Factor | - | - | - | 0.882 | 0.779 | 0.687 | 0.607 | 0.535 |
| Present Value of FCF | - | - | - | $6.1M | $7.3M | $7.9M | $8.1M | $8.0M |
| Sum of PV of UFCF | - | - | - | $6.1M | $13.3M | $21.2M | $29.3M | $37.3M |
WACC Calculation
Weighted Average Cost of Capital used for discounting cash flows.
| WACC Calculation | Value |
|---|---|
| Cost of Debt | 6.9% |
| Tax Rate | 21.3% |
| After Tax Cost of Debt | 5.4% |
| Risk Free Rate | 4.40% |
| Market Risk Premium | 4.3% |
| Beta | 2.06 |
| Cost of Equity | 13.3% |
| Total Debt | $0 |
| Market Cap | $742.2M |
| Total Capital | $742.2M |
| Debt Weighting | 0.0% |
| Equity Weighting | 100.0% |
| WACC | 13.3% |
Terminal Value
Choose between perpetuity growth or exit multiple methods.
| Terminal Value Calculation | Value |
|---|---|
| Terminal Growth Rate | 2.5% |
| Final Year FCF | $14.9M |
| Terminal Value | $141.3M |
| PV of Terminal Value | $75.6M |
| Cumulative PV of UFCF | $37.3M |
| Net Debt | $-325.3M |
| Equity Value | $438.2M |
| Shares Outstanding | 169.5M |
| Implied Share Price | $3 |
| Current Share Price | $5 |
| Implied Upside/(Downside) | -42.6% |
Valuation Summary
$2.59
Implied Price
$4.50
Current Price
-42.6%
Upside/Downside
13.3%
WACC
VMEO Peer Valuation Analysis
Relative valuation based on comparable company trading multiples
Peer Valuation Analysis
Fair Value Range Analysis
Based on median multiples from 11 peer companies in Technology
P/E Ratio
$2.57
-42.9%
Peer Median: 24.5x
EV/EBITDA
$1.40
-68.8%
Peer Median: 10.3x
P/S Ratio
$1.85
-58.8%
Peer Median: 0.7x
Interpretation: Each multiple provides a different perspective on fair value. Consider which multiple is most relevant for VMEO's business model and current situation.
Multiple Comparison
| Multiple | VMEO Current | Peer Median | Peer Average | Premium/Discount | Assessment |
|---|---|---|---|---|---|
| P/E Ratio | 42.9x | 24.5x | 25.5x | 75.1% | Overvalued |
| EV/EBITDA | 18.5x | 10.3x | 13.5x | 80.2% | Overvalued |
| P/S Ratio | 1.8x | 0.7x | 1.4x | 143.0% | Overvalued |
Peer Companies
Click any company to view their valuation
| Company | Market Cap | P/E Ratio | EV/EBITDA | P/S Ratio |
|---|---|---|---|---|
| $1.17B | 36.7x | 10.3x | 0.7x | |
| $0.89B | 0.0x | 32.9x | 0.9x | |
| $0.90B | 24.5x | 18.9x | 1.6x | |
| $0.80B | 158.9x | 7.0x | 0.7x | |
| $0.69B | 0.0x | 8.2x | 0.7x | |
| $0.74B | 42.9x | 18.5x | 1.8x | |
| $0.70B | 36.7x | 20.8x | 0.7x | |
| $0.64B | 16.7x | 6.4x | 0.7x | |
| $0.65B | 14.7x | 6.3x | 0.9x | |
| $0.56B | 12.9x | 5.6x | 0.5x | |
| $2104.52B | 19.1x | 14.1x | 5.9x |
VMEO Graham Number
Benjamin Graham's conservative valuation formula for defensive investors
Input Data
| EPS (TTM) | $0.11 | Latest 10-K |
| Book Value per Share | $2.41 | Latest 10-K Balance Sheet |
| Graham Constant | 22.5 | Benjamin Graham's formula |
Graham Number Result
$2.39
Intrinsic Value
$4.50
Current Price
-47.0%
Upside/Downside
Confidence: High
Conservative value investing approach
Calculation Breakdown
Formula:
√(22.5 × EPS × BVPS)
Step 1: Multiply constant by EPS
22.5 × 0.11 = 2.36
Step 2: Multiply by Book Value per Share
2.36 × 2.41 = 5.70
Step 3: Take square root
√5.70 = 2.39
Graham Number Result:
$2.39
VMEO 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
0.11 × (8.5 + 2 × 8.0%)
Input Data & Growth Assumptions
Current EPS (TTM)$0.11
Latest 10-K • 2024-12-31T00:00:00
No positive historical growth rates available.
Graham's formula is designed for growing companies. Use the custom input below with a conservative positive growth estimate (5-10%).
Custom
%
Enter a positive growth rate estimate (0-50%)
Graham Intrinsic Value Result
$2.57
Intrinsic Value
$4.50
Current Price
-42.9%
Upside/Downside
Base Formula
Growth: 8.0%
VMEO Peter Lynch Fair Value
Growth-based valuation using PEG ratio analysis for growth stocks
Fair Value Calculation
EPS (TTM)$0.11
Latest 10-K • 2024-12-31T00:00:00
No positive historical growth rates available. Using custom growth rate slider.
10.0%
1%50%
Fair Value Formula: EPS × Growth Rate
$0.11 × 10.0% = $1.05
$1.05
Fair Value
$4.50
Current Price
-76.7%
Upside/Downside
PEG Analysis
42.9x
Current P/E
10.0%
Growth Rate
4.29
PEG Ratio (P/E ÷ Growth Rate)
Significantly Overvalued
PEG Ratio Interpretation:
• PEG < 1.0: Undervalued (growth exceeds P/E)
• PEG = 1.0: Fairly valued (ideal Lynch ratio)
• PEG > 1.5: Overvalued (paying premium for growth)
Peter Lynch's Rule:
"The P/E ratio of any company that's fairly priced will equal its growth rate." A stock with 15% growth should trade at a P/E of 15 (PEG = 1.0).
VMEO Earnings Power Value (EPV)
Normalized earnings-based valuation for sustainable earning power assessment
Earnings Normalization
| Earnings Component | Amount ($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
$1.71
EPV per Share
$4.50
Current Price
-62.1%
Upside/Downside
9.2%
WACC: 9.2% (calculated from market data)
Confidence: High
Normalized earnings approach
EPV Calculation Breakdown
Enterprise Value Calculation
| Normalized Earnings | $0.0B |
| Cost of Capital | 9.2% |
| Enterprise Value | $0.3B |
Per Share Value
| Enterprise Value | $0.3B |
| Shares Outstanding | 0.2B |
| EPV per Share | $1.71 |
WACC Components
| Cost of Equity | 9.2% |
| After-Tax Cost of Debt | 3.5% |
| Equity Weight | 100.0% |
| Debt Weight | 0.0% |
| WACC | 9.2% |