DRCT Valuation

Direct Digital Holdings Inc

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0.411

+0.014(3.526%)1D

Overview
Forecast
Valuation
Earnings

DRCT Relative Valuation

DRCT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DRCT is overvalued; if below, it's undervalued.

Historical Valuation

Direct Digital Holdings Inc (DRCT) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.06 is considered Undervalued compared with the five-year average of 14.95. The fair price of Direct Digital Holdings Inc (DRCT) is between 0.73 to 1.44 according to relative valuation methord. Compared to the current price of 0.41 USD , Direct Digital Holdings Inc is Undervalued By 44.42%.

Relative Value

Fair Zone

0.73-1.44

Current Price：0.41

44.42%

Undervalued

-1.89

Trailing

Forward

12.27

EV/EBITDA

Direct Digital Holdings Inc. (DRCT) has a current EV/EBITDA of 12.27. The 5-year average EV/EBITDA is 4.67. The thresholds are as follows: Strongly Undervalued below -17.23, Undervalued between -17.23 and -6.28, Fairly Valued between 15.62 and -6.28, Overvalued between 15.62 and 26.57, and Strongly Overvalued above 26.57. The current Forward EV/EBITDA of 12.27 falls within the Historic Trend Line -Fairly Valued range.

-10.22

EV/EBIT

Direct Digital Holdings Inc. (DRCT) has a current EV/EBIT of -10.22. The 5-year average EV/EBIT is 1.82. The thresholds are as follows: Strongly Undervalued below -11.12, Undervalued between -11.12 and -4.65, Fairly Valued between 8.29 and -4.65, Overvalued between 8.29 and 14.76, and Strongly Overvalued above 14.76. The current Forward EV/EBIT of -10.22 falls within the Undervalued range.

0.06

Direct Digital Holdings Inc. (DRCT) has a current PS of 0.06. The 5-year average PS is 0.09. The thresholds are as follows: Strongly Undervalued below -0.05, Undervalued between -0.05 and 0.02, Fairly Valued between 0.16 and 0.02, Overvalued between 0.16 and 0.23, and Strongly Overvalued above 0.23. The current Forward PS of 0.06 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/OCF

Direct Digital Holdings Inc. (DRCT) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.56. The thresholds are as follows: Strongly Undervalued below -10.39, Undervalued between -10.39 and -4.92, Fairly Valued between 6.04 and -4.92, Overvalued between 6.04 and 11.52, and Strongly Overvalued above 11.52. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

-1.37

P/FCF

Direct Digital Holdings Inc. (DRCT) has a current P/FCF of -1.37. The 5-year average P/FCF is 1.27. The thresholds are as follows: Strongly Undervalued below -2.70, Undervalued between -2.70 and -0.72, Fairly Valued between 3.26 and -0.72, Overvalued between 3.26 and 5.25, and Strongly Overvalued above 5.25. The current Forward P/FCF of -1.37 falls within the Undervalued range.

Direct Digital Holdings Inc (DRCT) has a current Price-to-Book (P/B) ratio of -0.45. Compared to its 3-year average P/B ratio of 19.21 , the current P/B ratio is approximately -102.33% higher. Relative to its 5-year average P/B ratio of 16.61, the current P/B ratio is about -102.70% higher. Direct Digital Holdings Inc (DRCT) has a Forward Free Cash Flow (FCF) yield of approximately -83.13%. Compared to its 3-year average FCF yield of -39.49%, the current FCF yield is approximately 110.48% lower. Relative to its 5-year average FCF yield of -31.03% , the current FCF yield is about 167.85% lower.

-0.45

P/B

Median3y

19.21

Median5y

16.61

-83.91

FCF Yield

Median3y

-39.49

Median5y

-31.03

Competitors Valuation Multiple

The average P/S ratio for DRCT's competitors is 0.41, providing a benchmark for relative valuation. Direct Digital Holdings Inc Corp (DRCT) exhibits a P/S ratio of 0.06, which is -84.28% above the industry average. Given its robust revenue growth of -53.58%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

DRCT.O

Direct Digital Holdings Inc

Pop Culture Group Co Ltd

Loss

17.33M

DLPN.O

Dolphin Entertainment Inc

Baosheng Media Group Holdings Ltd

Loss

4.14M

Performance Decomposition

Market capitalization of DRCT decreased by 86.32% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from -14.37 to -41.36.

The secondary factor is the Revenue Growth, contributed -53.58%to the performance.

Overall, the performance of DRCT in the past 1 year is driven by Margin Expansion. Which is more sustainable.

-53.58%

21.86M → 10.14M

Revenue Growth

187.82%

-14.37 → -41.36

Margin Expansion

-220.56%

0.21 → -0.26

P/E Change

-86.32%