Zedge, Inc.

ZDGE

Communication ServicesInternet Content & InformationAMEX

$2.80

Market Cap: $36.52M

Zedge, Inc. (ZDGE) Valuation Summary

Updated Apr 6, 2026 22:29

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$1.36 – $13.90	$4.53	+51.2%
Revenue DCF 10Y	$1.78 – $17.20	$5.77	+92.4%
▸ Trading Multiples
EV/Revenue	$1.78 – $3.68	$1.93	-35.8%

Valuation History

DCF Analysis

Zedge, Inc. (ZDGE) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$5.77

Market Price

$2.80

Upside / Downside

+106.1%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -2.6% to a target of 10.4% over 5 years, discounted at a WACC of 7.3%, Zedge, Inc. (ZDGE) has an intrinsic value of $5.77 per share (range: $1.78 – $17.20).

Key Assumptions

Current Operating Margin

-2.6%

Target Operating Margin

10.4%

WACC

7.3%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.0%

Target CapEx/Rev

11.4%

D&A/Revenue

7.6%

Tax Rate

6.9%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	FCFF	PV(FCFF)
2026	30	1.4%	-0.0%	-0	-0	2	(1)	1	1
2027	32	5.7%	2.6%	1	1	2	(1)	2	1
2028	35	10.7%	5.2%	2	2	3	(2)	2	2
2029	39	10.7%	7.8%	3	3	3	(2)	3	2
2030	43	10.7%	10.4%	4	4	3	(3)	4	3
2031	47	9.4%	10.4%	5	5	4	(4)	4	3
2032	51	8.1%	10.4%	5	5	4	(4)	4	3
2033	54	6.9%	10.4%	6	5	4	(5)	4	2
2034	57	5.6%	10.4%	6	6	4	(6)	4	2
2035	60	4.3%	10.4%	6	6	5	(7)	3	2

Enterprise Value Bridge

Sum of PV(FCFF)20

Terminal Value (Gordon Growth at 3.0%)80

PV of Terminal Value41

Enterprise Value61

(–) Net Debt-18

Equity Value79

(÷) Shares Outstanding14

Fair Value per Share$5.77

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.4%	7.4%	10.4%	13.4%	16.4%
5.3%	$2	$6	$10	$13	$17
6.3%	$2	$4	$7	$10	$12
7.3%	$2	$4	$6	$8	$10
8.3%	$2	$3	$5	$7	$8
9.3%	$2	$3	$4	$6	$7

Current price: $2.80. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 7.2% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Zedge, Inc. (ZDGE) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$4.53

Market Price

$2.80

Upside / Downside

+61.8%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -2.6% to a target of 10.4% over 5 years, discounted at a WACC of 7.3%, Zedge, Inc. (ZDGE) has an intrinsic value of $4.53 per share (range: $1.36 – $13.90).

Key Assumptions

Current Operating Margin

-2.6%

Target Operating Margin

10.4%

WACC

7.3%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.0%

Target CapEx/Rev

11.4%

D&A/Revenue

7.6%

Tax Rate

6.9%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	FCFF	PV(FCFF)
2026	30	1.4%	-0.0%	-0	-0	2	(1)	0	0
2027	32	5.7%	2.6%	1	1	2	(2)	1	1
2028	35	10.7%	5.2%	2	2	3	(3)	1	1
2029	39	10.7%	7.8%	3	3	3	(4)	2	1
2030	43	10.7%	10.4%	4	4	3	(5)	2	2

Enterprise Value Bridge

Sum of PV(FCFF)5

Terminal Value (Gordon Growth at 3.0%)53

PV of Terminal Value39

Enterprise Value44

(–) Net Debt-18

Equity Value62

(÷) Shares Outstanding14

Fair Value per Share$4.53

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.4%	7.4%	10.4%	13.4%	16.4%
5.3%	$1	$4	$7	$11	$14
6.3%	$1	$3	$6	$8	$10
7.3%	$1	$3	$5	$6	$8
8.3%	$1	$3	$4	$5	$7
9.3%	$1	$2	$3	$5	$6

Current price: $2.80. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 7.2% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$1.93

Market Price

$2.80

Upside / Downside

-31.2%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Zedge, Inc. (ZDGE) has a fair value of $1.93 based on 8 comparable companies in the Internet Content & Information industry.

EV/Revenue Valuation — Internet Content & Information

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Zedge, Inc.ZDGE	38	0.7x	0.8x
The Beachbody Company, Inc.BODI	83	0.3x	0.2x
Fluent, Inc.FLNT	63	0.4x	0.4x
PodcastOne, Inc.PODC	58	1.1x	1.3x
MoneyHero Limited Class A Ordinary SharesMNY	53	0.1x	0.1x
Reading International, Inc.RDI	38	1.2x	1.1x
comScore, Inc.SCOR	36	0.2x	0.2x
Able View Inc.ABLV	31	0.2x	—
NIP Group Inc.NIPG	20	0.4x	0.3x
Industry Median		0.3x	0.3x
(*) Revenue		29	27
= Enterprise Value		9	7
(-) Net Debt		-18	-18
Equity Value		28	25
(/) Outstanding shares		14	14
Fair Price		$2	$2

Selected Fair Value (avg of trailing + forward)

$1.93

-31.2%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$1.36 – $13.90

$4.53

+51.2%

Revenue DCF 10Y

$1.78 – $17.20

$5.77

+92.4%

▸ Trading Multiples

EV/Revenue

$1.78 – $3.68

$1.93

-35.8%

DCF Analysis

Zedge, Inc. (ZDGE) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$5.77

Market Price

$2.80

Upside / Downside

+106.1%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-2.6%

Target Operating Margin

10.4%

WACC

7.3%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.0%

Target CapEx/Rev

11.4%

D&A/Revenue

7.6%

Tax Rate

6.9%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	FCFF	PV(FCFF)
2026	30	1.4%	-0.0%	-0	-0	2	(1)	1	1
2027	32	5.7%	2.6%	1	1	2	(1)	2	1
2028	35	10.7%	5.2%	2	2	3	(2)	2	2
2029	39	10.7%	7.8%	3	3	3	(2)	3	2
2030	43	10.7%	10.4%	4	4	3	(3)	4	3
2031	47	9.4%	10.4%	5	5	4	(4)	4	3
2032	51	8.1%	10.4%	5	5	4	(4)	4	3
2033	54	6.9%	10.4%	6	5	4	(5)	4	2
2034	57	5.6%	10.4%	6	6	4	(6)	4	2
2035	60	4.3%	10.4%	6	6	5	(7)	3	2

Enterprise Value Bridge

Sum of PV(FCFF)20

Terminal Value (Gordon Growth at 3.0%)80

PV of Terminal Value41

Enterprise Value61

(–) Net Debt-18

Equity Value79

(÷) Shares Outstanding14

Fair Value per Share$5.77

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.4%	7.4%	10.4%	13.4%	16.4%
5.3%	$2	$6	$10	$13	$17
6.3%	$2	$4	$7	$10	$12
7.3%	$2	$4	$6	$8	$10
8.3%	$2	$3	$5	$7	$8
9.3%	$2	$3	$4	$6	$7

Current price: $2.80. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 7.2% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$1.93

Market Price

$2.80

Upside / Downside

-31.2%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Zedge, Inc. (ZDGE) has a fair value of $1.93 based on 8 comparable companies in the Internet Content & Information industry.

EV/Revenue Valuation — Internet Content & Information

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Zedge, Inc.ZDGE	38	0.7x	0.8x
The Beachbody Company, Inc.BODI	83	0.3x	0.2x
Fluent, Inc.FLNT	63	0.4x	0.4x
PodcastOne, Inc.PODC	58	1.1x	1.3x
MoneyHero Limited Class A Ordinary SharesMNY	53	0.1x	0.1x
Reading International, Inc.RDI	38	1.2x	1.1x
comScore, Inc.SCOR	36	0.2x	0.2x
Able View Inc.ABLV	31	0.2x	—
NIP Group Inc.NIPG	20	0.4x	0.3x
Industry Median		0.3x	0.3x
(*) Revenue		29	27
= Enterprise Value		9	7
(-) Net Debt		-18	-18
Equity Value		28	25
(/) Outstanding shares		14	14
Fair Price		$2	$2

Selected Fair Value (avg of trailing + forward)

$1.93

-31.2%