Prior to Zedge (ZDGE) there were three previous low EV/revenue ratio stocks suggested by NIA:
NIA suggested Sterling Infrastructure (STRL) on August 28, 2017, at a price of $10.25 per share where its enterprise value was 0.387X revenue. On December 29, 2023, STRL hit a high of $89.80 or 1.397X revenue for a gain of 777.07%.
NIA suggested Lifeway Foods (LWAY) on June 10, 2019, at a price of $2.10 per share where its enterprise value was 0.451X revenue. On November 24, 2023, LWAY hit a high of $17.33 or 1.587X revenue for a gain of 725.24%.
NIA suggested Daktronics (DAKT) on November 28, 2021, at a price of $4.77 per share where its enterprise value was 0.302X revenue. On November 27, 2023, DAKT hit a high of $12.42 or 0.639X revenue for a gain of 160.38%.
ZDGE's trailing seven-year median enterprise value/revenue ratio is 1.833.
ZDGE has trailing twelve-month revenue of $27.42 million.
ZDGE has cash of $16.7 million and no debt as of December 7th.
An enterprise value of $27.42 million X 1.833 = $50.26 million + $16.7 million in cash = market cap of $66.96 million.
ZDGE has 14.35 million shares outstanding.
ZDGE should be trading for a minimum of $4.67 per share, but all other U.S. technology stocks are extremely overvalued and trading for well above their long-term median multiples.
Prior to NIA suggesting ZDGE we researched all other U.S. technology stocks and the only comparable company with a low multiple and strong balance sheet was Paltalk (PALT).
PALT has already increased from 0.367X revenue up to over 2X revenue today and ZDGE is a 1,000X better company.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is meant for informational and educational purposes only and does not provide investment advice.